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Year End Donating

Tax Considerations - Meaningful Giving

Tax Deductible Contributions and RMDs*:

RMDs: As the end of the year approaches, if charitable giving is one of your retirement objectives, there’s a tax-relief strategy that can be a win-win for you and Arvada West high School Foundation. It’s called a qualified charitable distribution, or QCD.

Once you turn 70½, the QCD rule allows you to instruct your IRA administrator to direct transfer up to $100,000 annually to one or more eligible 501(c)(3) charities. And because that money is going directly to charity, it isn’t considered taxable income, and you won’t pay taxes on the amount you donate.

The ability to make this charitable tax deduction without itemizing can be a significant benefit on its own. If you’re 72 or older and must take RMDs, the QCD amount can then be counted toward your RMD for the year.  Instead of paying taxes on the mandated withdrawal as ordinary income — the way an RMD normally works — you wouldn’t owe any taxes on the portion of your RMD that you gave to charity.

Using your RMD as a charitable contribution excludes that amount from your adjusted-gross income (AGI). This means that along with reducing your income taxes, it also could lower the amount of your Social Security benefit subject to federal income taxes and help you avoid or reduce income-related Medicare surcharges.

Tax Deductible Contributions: 

AWHS Foundation is a 501(c)(3) nonprofit organization. Contributions are tax deductible to the full extent of the law. Please consider AWHS Foundation when making your annual contributions.

*To determine the tax deductibility and qualification of your RMD and other contributions, please consult your tax advisor and/or attorney. Nothing contained on this page is intended nor should be construed as tax or legal advice.

Year End Donating: About Us
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