Donor faqs
Who is Gifting Insider?
The Gifting Insider team assists individuals in all areas of gifting throughout their lifetime. In order to help you, we help all parties involved in the gifting process. Our goal is to make the gifting process both simple and impactful. It has a variety of programs, including Best Interest Gifting™ (B.I.G.) and Nonprofit Operating Work (N.O.W.) Platform, a platform that helps nonprofit organizations educate donors and a platform for financial advisors to communicate with the custodian, CPA and charity.
what is b.i.g.?
B.I.G. stands for Best Interest Gifting™, which is a program aimed to increase the impact of individuals’ charitable donations. Using experience and knowledge of our Certified Advisors, we help determine which financial assets you should use to gift to your charities. We think about the tax impact and what assets are best left for your family to inherit.
What is a Legacy IRA®?
A Legacy IRA® assists those who are over 70 1/2 make gifts through their IRA while reducing taxes owed. It helps track Qualified Charitable Distributions (QCDs) to help ensure donors receive the full tax benefit and helps ensure accurate tax reporting.
Do I qualify to give through a Qualified Charitable Distribution (QCD)?
If you are over the age of 70 1/2 and have an Individual Retirement Account (IRA), you qualify.
How much can I give through a QCD?
You can give up to $100,000 through a QCD and pay no income taxes. If you are married and your spouse has an IRA, you can give up to $200,000 annually.
How can giving through a QCD benefit my Medicare costs?
Medicare Premiums are calculated using your Adjusted Gross Income (AGI) which is found on your income tax return. Your AGI will be lower when you make Qualified Charitable Donations that are properly reported using your Legacy IRA®, which can ultimately reduce your Medicare premiums.
Can I use an inherited IRA to donate?
Unfortunately, no – Inherited IRAs are excluded from the IRS QCD rules.
Can I contribute to Donor Advised Fund (DAF)?
Unfortunately, no – DAFs are excluded from the IRS QCD rules.
How does this preserve more of my after-tax assets?
By donating from your IRA first, you are saving your cash which is already taxed. Upon your passing, your beneficiaries will pay tax on the distributions from your IRA and they won’t on your cash accounts.
TERMS TO KNOW
Required Minimum Distribution (RMD):
The amount of money an individual must withdrawal from their IRA once they turn 72. Watch video to learn more.
Standard Deduction:
A flat amount the IRS allows an individual to reduce taxable income if they do not itemize their deductions. It is based on your filing status, age and if you claim any dependents. Watch video to learn more.
Qualified Charitable Distribution (QCD):
The withdrawal of funds from a qualified IRA for an individual over the age of 70 1/2 that donates directly to a qualified charity. This will eliminate the tax owed on the withdrawal. You can give up to $100,000! Watch video to learn more.