If you are 70 ½ years of age or older, you have a unique opportunity to maximize the impact of your charitable giving. By considering a Qualified Charitable Distribution (QCD), you can make a tax-efficient donation that benefits both yourself and Phi Kappa Phi.
A QCD allows eligible individuals to directly transfer funds from their individual retirement account (IRA) to a qualified charitable organization, such as The Honor Society of Phi Kappa Phi, without incurring income tax on the distribution. This option presents a tax-savvy strategy for fulfilling your philanthropic goals while potentially reducing your taxable income.
Tax Benefits: By making a charitable donation through a QCD, the amount transferred from your IRA directly to Phi Kappa Phi excluded from your taxable income. This can provide a significant tax advantage, especially for donors who do not itemize deductions or have already reached their maximum deduction limit.
Fulfilling Required Minimum Distributions (RMDs): Beginning in the year you turn 73, you can use your gift to satisfy all or part of your RMD. It allows you to meet your RMD obligations while supporting causes that are close to your heart.