Give Through an IRA
Congress has signed into law a provision which allows donors to give portions of their IRA to nonprofit charities, such as MaineGeneral Health (MGH), and avoid paying income tax on the distribution.
This type of gift is called a Qualified Charitable Distribution (QCD). QCDs could be an excellent choice for your giving, and contributing to MGH directly from your IRA will support health care for the community you love.
What are Qualified Charitable Distributions?
- Qualified Charitable Distributions (QCDs) allow you to give up to $100,000 per year from your IRA directly to your favorite nonprofits as charitable contributions.
- If you file joint taxes, each spouse may distribute up to $100,000 each in QCDs.
- If you have a Required Minimum Distribution (RMD) for the calendar year, QCDs could be a tax-free way to satisfy all or part of your RMD.
QCD Tax Benefits
- Choosing to give through QCDs could potentially save thousands of dollars in taxes.
- Funds from your IRA could incur taxes if distributed directly to you, even if you plan to later donate the funds.
- In contrast, directing a QCD to MaineGeneral (instead of writing a personal check for the donation) is one way to lower overall tax liability and gain tax benefits for your generosity, whether you itemize or take the standard deduction.
Who is eligible to make a QCD?
Anyone with an IRA who is 70-½ years of age or older.
How much can I donate out of my IRA?
Up to $100,000 per year, per person.
What should I do next?
- Talk to your financial advisors to see if a QCD is right for you.
- Begin planning now for next year's distributions. The QCD transfer must be complete by Dec. 31 of a calendar year in order to count as your required minimum distribution for that year.
- Then, tell your IRA administrator that you want to make a qualified charitable distribution to MaineGeneral Health. They will mail the check from your IRA directly to MaineGeneral.
- You will need the following information to make your gift:
- Donation amount
- Our legal name: MaineGeneral Health
- Any specific gift designation within MGH (e.g., hospice, behavioral health, cancer care, where needed most)
- MGH’s Federal Tax Identification Number: 04-3369649
- Our mailing address: PO Box 828 Waterville, ME 04903
- Let us know you'll be giving through a QCD!
- IRA gifts could arrive without your name and contact information. Please let us know to expect your gift so that we can thank you and provide a record of your contribution's arrival. Call 207-626-1809, email us at philanthropy@mainegeneral.org, or drop a note in the mail: PO Box 828, Waterville, ME 04903.
Note: This is not professional tax or legal advice. Donors should consult their tax and legal advisors regarding their specific situation.