Tax-wise giving

Don was a retired businessman who volunteered as a docent at Christ Cathedral. When he heard about the need to update and provide ongoing maintenance of the Hazel Wright Organ he was excited to help in a significant way. He wanted to make a larger gift than normal, but had questions about the best way to fund his gift. He was also concerned about conserving cash resources for the future. 

Don learned about the possibility of using his IRA (Individual Retirement Account) to make a gift for this need. Because Don was already over age 70½, he could take advantage of the IRA Qualified Charitable Distribution (QCD) option this year and make the gift to the Orange Catholic Foundation’s Hazel Wright Organ Maintenance Fund directly from his IRA. Don knew that he didn’t really need all the income from his IRA this year. He had enough income from other sources to cover his living expenses, so he decided to direct a QCD of $100,000 from his IRA to the Hazel Wright Organ Maintenance Fund at the foundation earlier this year.  

He was thrilled to discover that he could transfer money from his IRA to a qualified charity, such as the Orange Catholic Foundation, without paying any federal income tax. The fact that his gift qualified for his required minimum distribution amount was an added bonus! 

If you are 70½ or older you are likely familiar with the IRA required minimum distribution. Each year, the IRS requires you to withdraw a certain amount from your IRA, whether you need the funds or not, and you pay income tax on every distribution you take. For many IRA account holders, the taxes can be significant and an undesirable annual burden. 

Many people have discovered that they can make a big difference to support their parish, school or ministry with an IRA QCD gift. For an added benefit, consider designating the same purpose through the Orange Catholic Foundation as a beneficiary of your IRA. 

To benefit this year, your IRA QCD gift must be made before Dec. 31, 2019. Call your IRA administrator now or contact the Orange Catholic Foundation at 714.282.3021 for more information on how to make the IRA QCD work for you. 

Don was called home to heaven this summer. Before he passed away, he left a meaningful mark on Earth and named the Orange Catholic Foundation’s Hazel Wright Organ Maintenance Fund as the beneficiary of his IRA. Don will always be remembered for his love of God, his Catholic Faith and his generosity to the Hazel Wright Organ, which honors our Heavenly Father for generations to come.

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