DID YOU KNOW YOU CAN MAKE A TAX-FREE DONATION DIRECTLY FROM YOUR IRA?

An IRS provision allows retirees age 70 1/2 years and older to donate up to $100,000 tax-free from their IRA each year to a qualified charity, such as Portland Fruit Tree Project.

Generally, when you take a distribution from your IRA, it is treated as taxable income. Under this provision, the assets are excluded from income if the distribution is made directly to charity.

The distribution is not included in your income so you avoid all the effects that a regular IRA withdrawal creates, including taxes on Social Security benefits. Distributions excluded from income are also equivalent to a 100% deduction. Normally, charitable contribution deductions are limited to a lower percentage (or are eliminated altogether) for taxpayers who do not itemize and take the standard deduction.

GUIDELINES FOR DONATING IRA DISTRIBUTIONS TO A CHARITY

ELIGIBILITY

IRA account owner must be age 701/2 or older at time of IRA distribution in order to take advantage of this provision. Rule applies only to Traditional, Rollover, and Roth IRAs. SEPs and SIMPLE IRAs are generally excluded. Distributions of non-deductible IRA contributions also do not qualify.

ANNUAL LIMIT

Maximum amount of a taxpayer’s qualified charitable distribution must not exceed $100,000 per tax year and may include required minimum distributions (RMDs).

QUALIFICATIONS

Distribution must be made to a qualifying charity. Private foundations and donor-advised funds are not eligible. Portland Fruit Tree Project is a qualifying 501(c)(3) nonprofit charity; Federal Tax Identification 93-0719546.

DIRECT CONTRIBUTION

The IRA Trustee or custodian must make the distribution directly to the charity. Distributions made payable to the IRA owner and transferred to the charity will not qualify.

By including Portland Fruit Tree Project in your estate plans, you make a commitment to fighting food insecurity and promoting food justice in the Portland Community. Your estate gift will ensure that as long as fruit can grow on trees, Portlanders will have increased access to high quality local fruit.

Bequests support our ability to provide and increase our services to a broader group of community members and allow us to invest in critical infrastructure, allowing us to thrive and fight food insecurity for generations to come.

We would be honored to speak with you regarding a gift in your will or memorial and honorary gifts. 

If you are interested in making a bequest, please contact taproot@portlandfruit.org to discuss details.