Plan Now to Make a Tax-Free Gift from Your IRA
Take advantage of the opportunity to support the Women’s Fund of East Tennessee (WFET) through a tax-free distribution from your IRA.
Tax-free gifts from IRAs are simple to make and count toward satisfying your Required Minimum Distribution (RMD).
Make a gift to benefit the Women’s Fund that can count towards your RMD. As you may know, if you own an IRA, RMD rules take effect at age 70 1/2. When you receive a distribution, it is taxed as ordinary income. This tax can be avoided by using your IRA to make a gift that supports WFET. Instead of taking your required distribution, you can make a qualified charitable distribution (up to $100,000 per person) from your IRA.
The Women’s Fund is a 501(c)(3) charitable organization and a supporting organization of East Tennessee Foundation (ETF). Founded in 1986 ETF is a public, nonprofit, community foundation created by and for the people of East Tennessee, where many donors join together to make the region they love a better place, today and for future generations. As a supporting organization we are not allowed to accept IRA gifts; however, ETF houses and manages our endowment fund.
You can make an IRA gift directly to ETF on our behalf, and it will be added to the WFET endowment. Together, we can achieve your objectives while you benefit and make an important gift to impact the lives of low-income women and girls in perpetuity. WFET is working to grow our endowment and a $1M campaign is currently underway.
An IRA distribution counts toward your RMD so the amount you send to ETF directly from your IRA is excluded from your income for federal tax purposes, which means you pay no income tax on this amount. Best of all, the entire amount transferred supports WFET because ETF is not required to pay income tax on the IRA distribution.
Making an IRA Gift:
You pay no income tax on your gift
You can support the Women’s Fund
You control how your IRA is used
Your gift creates your legacy
Taking your RMD:
You may not need the money
You are limited by the RMD rules
You pay income tax on your distribution
Contact your IRA administrator or broker for instructions on how to make a qualified charitable distribution from your IRA. The distribution must be made directly from your IRA account to ETF.
For more information on supporting WFET through other forms of giving:
Terry A. Morgan, CFRE
Women’s Fund of East Tennessee
625 Market Street, Ste. 1300
Knoxville, TN 37902