The Gift That Gives Back

You can donate to the Kentucky Historical Society Foundation and save on your federal income taxes, a win-win!  If you are 70 ½ or older and have an IRA from which you must take minimum distribution every year, you can make a gift to the Historical Society Foundation directly from your IRA.  

Understanding Qualified Charitable Distributions

Qualified Charitable Distributions, or QCDs, provide a unique opportunity for retirees to support their favorite charitable organizations, like the Kentucky Historical Society Foundation, directly from their IRAs. QCDs allow individuals aged 70½ and older to transfer funds (up to $100,000 annually) from their IRAs to qualified charities without incurring income taxes on the distribution.

The Benefits of QCDs 

Tax Savings: One of the primary advantages of making charitable donations through QCDs is the potential for tax savings. By directing funds straight from your IRA to a charity, the distributed amount isn't counted as taxable income. 

Meeting Required Minimum Distributions (RMDs): For retirees who are required to take minimum distributions from their IRAs, QCDs can be an excellent way to satisfy this requirement while supporting charitable causes. 

Reducing Adjusted Gross Income (AGI): QCDs can lower your AGI, which may have positive effects on other aspects of your financial planning, such as reducing Medicare premiums or lowering the impact of the taxation of Social Security benefits.

How to Make a QCD 

Check Eligibility: Ensure you are at least 70½ years old, as this is the age requirement for making QCDs. 

Choose a Qualified Charity: Confirm that your chosen charity is eligible to receive QCDs. Most public charities fall into this category, but private foundations and donor-advised funds may not. As a 501(c)(3) nonprofit organization, Kentucky Historical Society Foundation is a qualified charity. 

Contact Your IRA Administrator: Inform your IRA administrator of your intention to make a QCD. They can guide you through the process, including preparing the necessary paperwork. 

Complete the Transaction: Once the details are in order, your IRA administrator will send the funds directly to the chosen charity.

Making charitable contributions through Qualified Charitable Distributions is a wonderful way to combine the joy of giving with the financial benefits of smart retirement planning. By using your retirement accounts to support causes close to your heart, you can leave a lasting impact on the Kentucky Historical Society while enjoying potential tax advantages. 

If you have any questions or would like more information on how to make a gift to the Kentucky Historical Society Foundation through your IRA, please contact Kathey G. Sanders, Executive Director, Kentucky Historical Society Foundation, at 502-782-4401 or kgolightlysanders@ky.gov.