If you’re a retiree aged 73 or older and have an IRA (Individual Retirement Account)
subject to required minimum distributions (RMDs) or own appreciated stock, you may
be able to reduce your taxes by making a gift donation to Friends of the Libraries, Kona
(F.O.L.K.). This can be done via a qualified charitable distribution (QCD) from your IRA
or through a stock donation.
- When you make a charitable gift from your IRA RMD as a qualified charitable
distribution, the amount is excluded from your taxable income. This reduces your
adjusted gross income. There may also be no need to itemize as a QCD gift is
not eligible for a charitable contribution deduction on your tax return. - Stock gifts can help you avoid capital gains taxes which allows your money to go
further.
The added bonus: Recipient non-profits do not pay taxes on these gifts.