IRA Gifts

If you’re 70½ years old or older, you have a unique opportunity to support qualified charities like the Colorado West Land Trust using funds from your traditional IRA, without incurring income taxes on the donation. This type of giving, known as a Qualified Charitable Distribution (QCD), allows you to donate up to $105,000 annually from your IRA directly to eligible charities.

Why Consider a QCD?

• Tax Benefits: Your QCD is not counted as taxable income, benefiting you even if you don’t itemize deductions. It’s important to note that you cannot claim this donation as an itemized deduction to avoid “double-dipping.”
• Starting Age: You can begin making QCDs the year you turn 70½, potentially reducing your taxable income and impacting Medicare premiums and Social Security benefits.
• Cost Efficiency: By donating through a QCD, you avoid additional taxes that would apply to regular donations, making your gift more impactful for both you and the charity.
• RMD Advantage: QCDs can count towards your Required Minimum Distributions (RMDs), reducing the amount you need to withdraw from your IRA and potentially saving on taxes.

To initiate a QCD, simply contact your IRA custodian (e.g., Fidelity, Schwab, Vanguard) and specify, our legal name, Mesa Land Conservancy, Inc. (EIN: 74-2155358) as the recipient. Your custodian will send the donation directly, and you’ll receive an acknowledgment letter for your records.

It’s advisable to consult with a tax advisor to maximize the benefits of a QCD. This method of giving is increasingly popular and can be done for various amounts.