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How to make an IRA charitable distribution

IRA Charitable Distributions

For anybody 70.5 years or older, an IRA is a great option for making gifts to the Lord’s work at your church, a local WELS-affiliated ministry, and/or a WELS area of ministry.

Typically, IRA distributions are taxable, but, for anyone 70.5 or older, qualified distributions from an IRA to charity are free from federal and potentially state income tax. Consider directing IRA distributions to 316NOW to save on taxes, then using the cash you would have given for other needs. The rollover to charity counts toward satisfying the donor’s required minimum distribution.

Gifts to charities from an IRA are not taxed

You and your spouse, assuming he or she is 70.5 years or older and has an IRA, may each make direct transfers of up to $100,000 per year to charity. Rather than being treated as taxable income, direct transfers to charity are wholly excluded for federal income tax purposes. These transfers do not generate a charitable deduction, but the relief from tax impact is often more advantageous. Consult your tax or financial advisor to determine the most appropriate gift assets for your situation.

Steps to give from your IRA

  1. Contact the investment firm that handles your IRA to request a direct transfer of IRA assets to a 316NOW.

  2. After conferring with your financial planners, contact your local WELS Christian giving counselor to learn more. Tap here to find the counselor nearest to you.

  3. Your gift may be given directly to 316NOW or you can direct your gift to 316NOW through the WELS Foundation. The WELS Foundation will distribute funds to 316NOW per your instructions. It will provide you with the proper acknowledgment.

  4. Note: To ensure that your IRA transfer is not taxable, the check for the gift must be made payable to 316NOW or the WELS Foundation. It cannot be made out to you personally.