Dear friend,
As we come to the end of 2023, here are some ideas for donating in a tax-wise way, and for looking ahead at ways to make your charitable giving more effective.
The QCD! The Qualified Charitable Distribution
This is a wonderful way of giving directly to a charity from your Traditional IRA that can help to satisfy your annual Required Minimum Distribution or a portion of it. Whatever amount you choose to donate, must name the Charity of your choice and be sent directly to them by your IRA administrator.
The Inherited IRA – A Current New Distribution Law
There has been a recent major change in how you must deal with an IRA that you Inherit if you are not a spouse. If you have recently received an Inherited IRA, under the current law you must now withdraw the entire amount of the Inherited IRA within a 10-year period. The Qualified Charitable Distribution described above allows you to make tax-deductible donations during each of those 10 years and save on taxes. Otherwise, at the end of 10 years, you may be facing large tax consequences when you are forced to withdraw the entire amount remaining in the Inherited IRA.
The Donor Advised Fund, or DAF
Establishing a Donor Advised Fund, known as a DAF, can be another way of making your tax-deductible donations. You can establish this kind of Fund with companies such as Vanguard, Fidelity and others. It is good to explore how the Donor Advised Fund works. You can do so online by simply searching “Donor Advised Fund.”
Below are a few of the questions asked about the DAF:
Who benefits from a donor-advised fund?
Contributions via DAFs help donors maximize tax benefits. Donors can contribute immediately to the Fund, build a philanthropic strategy, and recommend grants when ready. Invested charitable assets may grow over time, making more charitable dollars available to nonprofits.
Can you get your money back from a donor-advised fund?
Contributions to DAFs are irrevocable, meaning assets cannot be taken back once they are given. Although donors maintain advisory and grantmaking privileges for their DAF, once assets are gifted to the account, they belong to the sponsoring organization (such as Vanguard or Fidelity).
We thank you for including the Ananda Janaka Foundation in your overall giving whether through current donations or estate planning. Your gifts help in providing annual Grants to many areas of Ananda. As Ananda continues to share the dynamic and world-changing mission of Paramhansa Yogananda with people throughout the world, your support is greatly appreciated.
Please Contact Us for more information about how to make a planned gift to the Ananda Janaka Foundation.
We are always happy to hear from you.
In Divine Friendship,
Simple Steps in Estate Planning
- Make a Will
- And include a Living Trust as needed to avoid probate
- Name Beneficiaries on your IRA, Life Insurance policy, Bank accounts, investment accounts etc.
- Notify Ananda Janaka Foundation
Other ways to give:
- Donor Advised Funds
- Qualified Charitable Distribution from an IRA or other retirement accounts
- Digital Currencies
Build the Ananda Endowment Fund
All year end gifts go towards building the endowment fund.
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