City of Hope supporters, age 70 ½ or older, can get a tax break while supporting breakthrough treatments and research with a qualified charitable distribution (QCD) gift. With a qualified charitable distribution, you get many benefits.
Benefits:
- Make a qualified charitable distribution from your IRA to City of Hope and avoid paying income taxes on your donation.
- You can donate up to a total of $100,000 each year ($200,000 for married couples) and exclude the gift from your taxable income.*
- Advance lifesaving research and patient care.
*Complete your transfer before December 31. You should initiate your year-end transfer prior to December to ensure that the transfer is completed by December 31. Gifts made by IRA checkbook and received by City of Hope after December 16 may not arrive in time for the IRA custodian to count the gift as a distribution for the current year.
For example:
- Jane Miller wants to make a gift to City of Hope.
- Because Jane turned 73 this year, she must take a Required Minimum Distribution from her IRA, which she would have to claim as income.
- Jane wants to make a gift to City of Hope, so she uses a portion of her Required Minimum Distribution to make a gift directly to City of Hope and avoids paying income taxes on the donated amount. She receives these tax benefits even though she does not itemize any more.
For assistance, please contact us at 800-232-3314 or plannedgiving@coh.org. We would greatly appreciate being informed of your generosity so that we can be prepared to provide a proper and timely IRS acknowledgment. Please note that the IRS does not permit qualified charitable distributions from an IRA to satisfy event registration fees or membership dues.
“When I needed to start taking my Required Minimum Distribution from my IRA, I was thrilled to learn that I could donate my distribution directly to City of Hope and they would receive the entire amount free of taxes. My gifts support the pediatrics department because, as a longtime volunteer with the program, it’s near and dear to my heart.”
— Judy Kelly, City of Hope volunteer
Tax Law Update
The new SECURE Act (Setting Every Community Up For Retirement Enhancement), signed in December 2019, has tax, retirement, and estate planning implications for many people.
- The SECURE Act raises the Required Minimum Distribution (RMD) age. If you turn 70 ½ on or after January 1, 2020, you can now wait until you are age 73 before you must take a Required Minimum Distribution from your IRA.
- You can still make a gift to City of Hope and other charities through a qualified charitable distribution starting at age 70 ½. However, if you make IRA contributions after age 70 ½, as allowed under the SECURE Act, the amount you have available for qualified charitable distributions is reduced. Please consult your tax or financial advisor to learn how this may impact you.
- The SECURE Act repeals the maximum age for making IRA contributions. You can now contribute to your IRA even if you are over age 70 ½ (subject to annual limitations).
- The SECURE Act decreases the time over which inherited IRAs may be distributed. Inherited IRAs must now be distributed completely within 10 years of the IRA owner’s death, unless the IRA beneficiary is the surviving spouse; disabled or chronically ill; less than 10 years younger than the owner; or the owner’s minor child. Under these rules, naming City of Hope as a beneficiary of your IRA while using other assets to benefit family members may be a tax-wise charitable planning decision.
