Charitable IRAs

You can make a difference.

Now it’s easier than ever to make the gift of a lifetime. CREATE Foundation can help turn your individual retirement accounts (IRAs) into charitable gifts. Your community foundation can help you connect to the causes you care about most. You can set up a charitable fund in your name or make an unrestricted gift. Giving is one of life’’s pleasures; we can help you enjoy it today.

By giving through your community foundation, you can use your gift to meet ever-changing community needs— including future needs that often cannot be anticipated at the time your gift is made. Your gift can target the causes and programs you care about most.

CREATE Foundation understands our community’’s most pressing issues and can help you establish a fund to make an impact in areas of need or opportunity that are important to you. Here are three great ways to turn your IRAs into community good:

Establish a fund to meet ever-changing community needs.

Address a broad range of current and future needs. CREATE Foundation evaluates all aspects of community well-being—, arts and culture, community development, education, environment, health and human services— and awards strategic grants to high-impact projects and programs.

A Field of Interest Fund— connects personal values to high-impact opportunities.

Target gifts to the cause most important to you: arts, AIDS services, urban education, neighborhood revitalization, youth welfare and more. CREATE Foundation awards grants to community organizations and programs addressing your special interest area.

A Designated Fund— helps local organizations sustain and grow.

Support the good work of a specific nonprofit organization—a senior center, museum or any qualifying nonprofit charitable organization— by creating a specially Designated Fund. The community foundation will invest your gift for long-term growth and issue grants to your favorite nonprofit on a regular basis.

To learn more, contact Juanita Floyd at (662) 844-8989 or email her at

Why do donors want to give IRA assets to their community foundation?

After decades of deliberate saving, some of today’s retirees have more money in their IRAs than they need for daily living expenses and long-term care. For larger estates, a good portion of IRA wealth goes to estate taxes and income taxes of non-spousal beneficiaries; heirs may receive less than 50 percent of IRA assets passed on to them through estates.

Instead, IRA holders may choose to leave their IRAs to qualified charitable organizations— choosing charity over taxes.

Which donors stand to benefit most from giving their IRAs to charity?

Because charitable IRA transfers are not included in taxable income and not available for itemized charitable deductions, these special rules may benefit many different types of individuals:

  • Generous donors—. When making a major gift, some taxpayers may give more to charity than they can deduct that year. Donors cannot deduct more than 50 percent of their income for gifts of cash to public charities (30 percent, if giving to private foundations). Although amounts over 50 percent can be carried forward and deducted in future years, taxpayers will face an immediate tax bill and may lose some of the benefit of the deduction if they die before the gift has been fully deducted. Donors who consistently give above the limit will not be able to take advantage of the carry forward provisions.
  • Financially comfortable. Individuals or couples who distribute the minimum from their IRA— and have other forms of income to pay living expenses— may find that transferring their minimum distributions to the community foundation helps fulfill personal charitable goals, tax-free.

How has the law changed?

The American Taxpayer Relief Act of 2012 (ATRA) extended the qualified charitable distribution (QCD) provisions implemented in the 2011 tax act through December 31, 2013. Subsequent to that date, unless the provisions are further extended by future tax acts, the QCD provisions have expired. Accordingly, any future IRA distributions directly to charity would be considered as a distribution to the IRA owner and subject to itemized deduction by the donor. Donors considering utilizing an IRA for charitable purposes should consult their tax advisors.

The information provided here is based on analysis of recent legislation. Every effort has been made to ensure accuracy of the information. However, due to the complexity of the tax law and the fact that many of these provisions introduce issues that are new to the Internal Revenue Code, this information may be subject to change. It is not a substitute for expert legal, tax or other professional counsel and we strongly encourage donors to work with their professional advisors to determine the impact of this legislation on their particular situations. This information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.