Making a Gift Using Your IRA Charitable Distribution

What is an IRA Charitable Distribution?

The federal government has set aside a provision allowing certain individuals to make tax-free distributions from their Individual Retirement Accounts to Mid Coast Hunger Prevention Program.

Can I take advantage of this provision?

Anyone aged 70½ and older who owns a Roth or traditional IRA can make tax-free distributions.

What are the advantages to making a charitable distribution from my IRA?

  • Your donation counts towards your Required Minimum Distribution.
  • If transferred directly to MCHPP, the amount of the distribution is not classified as taxable income.
  • The transfer is direct from your IRA to MCHPP and requires minimal time and paperwork

Are there any restrictions?

  • You can donate up to $100,000 per year to public charities.
  • You cannot take a charitable deduction for your gift, because your distribution is not taxed.
  • You must make the distribution directly from your IRA to MCHPP. Do not withdraw the funds yourself and then donate them, because they will then be taxable.
  • Your charitable distribution can only be given as an outright gift. It cannot be used to fund life income gifts such as charitable gift annuities.

How do I make a charitable distribution to MCHPP?

  1. Contact your IRA account administrator to request they make a qualified charitable distribution from your IRA to MCHPP. Ask that a check be sent directly to MCHPP with your name in the memo.
  2. The gift can be directed to: MCHPP, 12 Tenney Way., Brunswick, ME 04011
  3. Contact the development staff at MCHPP to let us know your gift is coming and how you would like us to use it. You can email Karen Parker, Executive Director, at kp@mchpp.org or call at 207-725-2716 x 310.