Donate to Habitat - Make a Difference Today
Donate your Time, your Dollars, or your Social Connections by spreading the word about the work we do and the impact it has on our community!
Using your IRA as a charitable donation
Did you know that your tax deductible gift does much more than help families escape from unsafe, unhealthy living conditions? You are helping families to break the cycle of poverty and build long-term financial security.
Your IRA minimum distributions can be transferred directly and are considered donations when filing your taxes.
Those eligible can have annual direct transfers from their IRA up to $100,000 to any qualifying charitable organization, such as Fox Valley Habitat for Humanity. This is an easy, tax advantaged way for you to make annual gifts to all of your favorite charitable organizations.
But here’s the really good part; the Charitable IRA Rollover can automatically count toward your required minimum distribution (RMD) for the year. That’s a real advantage for a charitably minded IRA owner.
So why should you consider making your charitable gifts directly from your IRA rather than taking the money out as income first and then making your donations?
- You will not have to pay income tax on an unwanted distribution, and there can be other tax advantages (i.e. lowering your adjusted gross income, thus potentially lowering taxable Social Security income, and potentially increasing other itemized deductions).
The qualifications for this type of contribution are:
- You must be at least 70 ½ years old.
- You must give the gift by December 31st of each year.
- Funds must come directly from an IRA or Rollover IRA and made payable directly to the charity.
- You transfer the gift outright to one or more public charities, but not supporting organizations or donor advised fund
Contact your IRA custodian or accountant to help you arrange for the transfer of assets to Fox Valley Habitat for Humanity. They can make a transfer from your IRA directly to us. Your IRA trustees and custodians should have forms and procedures in place to make this transfer easy for you. Remember, qualifying direct transfers must occur prior to December 31st in order to apply to your tax filing.
Investments such as stocks, bonds and other investment tools not held in your IRA can also be donated to Fox Valley Habitat for Humanity. Contact us at (630) 859-3333 for additional information.
Your gift will help Fox Valley Habitat continue to build decent, affordable housing within your community.