 Greg SheldonYear-End Giving Options That Benefit You and the Zoo
My name is Greg Sheldon, and I am Certified Private Wealth Advisor® with Fifth Third Private Bank. I am also a member of the Indianapolis Zoo's Planned Giving Committee. Part of my role at the bank is advising families or individuals on meaningful ways to support charitable causes that not only benefit the nonprofits but also offer personal financial advantages. There are a couple of strategies that are always top of mind when I go into client conversations: qualified charitable distributions and charitable gift annuities.
Qualified charitable distributions, often known as QCDs, are a tax-efficient way for individuals who are 72 years old (73 if you reach the age of 72 after Dec. 31, 2022) or older to make charitable donations directly from their individual retirement accounts (IRAs). Instead of taking required minimum distributions (RMDs) and paying taxes on those withdrawals, individuals can allocate up to $100,000 per year to QCDs. This mechanism not only reduces taxable income but also supports the charitable endeavors closest to their hearts.
Another innovative approach to utilizing QCDs is funding a charitable gift annuity (CGA). Under the SECURE Act 2.0, QCDs are now allowed to fund a CGA - which is a contract between a donor and a nonprofit organization, wherein the donor makes a charitable gift in exchange for a fixed income stream for life. Individuals not only create a lasting impact on their chosen charitable organization but also secure a reliable income source in their retirement years.
We are already approaching the end of 2023, and I am advising my clients that it's not too late to take advantage of either of these tools. Many of my clients use one of these strategies, and we have found this is one of the best ways for them to give to a nonprofit they are passionate about.
If you are looking for more information or would like to talk through either of these strategies, please do not hesitate to reach out to the team at the Indianapolis Zoo.
About Fifth Third
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