Charitable Gift Annuities and Qualified Charitable Distributions from IRAs
Charitable Gift Annuities
A charitable gift annuity is a special giving arrangement in which, in return for a gift of at least $5,000 (or $10,000 for two annuitants), the San Antonio Humane Society provides guaranteed, fixed payments to you and/or another person for the rest of your lives. The rate of your payments is based on your age when the gift is made and will not change. A portion of your annuity payments may be tax-free, depending on the specifics of the gift. A charitable gift annuity also entitles you to partial income tax charitable deduction and may provide capital gains and estate tax benefits. After your lifetime, the remainder of your gift will support the work of San Antonio Humane Society.
Qualified Charitable Distributions from IRAs
The Congress has reinstated the Act that permits tax-free charitable gifts from mandatory IRA distributions for tax years 2012 and 2013. Under the Act, a distribution to a qualified charity can satisfy all or part of your required distribution. For example, if you are over the age of 70.5, have a required minimum IRA distribution of $25,000, and receive the funds yourself, the entire distribution is taxable as ordinary income. However, if you transfer some or all of that amount—let’s say $5,000-- directly to the San Antonio Humane Society (or any qualified charity), only $20,000 would be taxed as ordinary income. Of course, be sure to check with your tax advisor before making your distribution. Note that this charitable distribution is limited to persons age 70.5 and older, and such charitable distributions may not exceed $100,000 per year.