01/03/2023

A Hidden Gem in Secure ACT 2.0 for Not-for-profits and Foundation Fundraisers

Insights provided by OSAP Titanium Partner Saling Simms Associates

Starting the new year right for your foundations, Congress passed the Secure Act 2.0 along with the omnibus spending bill. President Joe Biden signed it into law just before the end of the year.

A provision that your benefactors need to know is how the new rules on Qualified Charitable Distributions (QCD) have changed to enable them to increase their gifts and save taxes.

Qualified Charitable Distributions Enhanced

The IRA charitable rollover or qualified charitable distribution (QCD) limit of $100,000 for 2023 will be indexed for inflation starting in 2024. Individuals 70½ or older are permitted to make distributions from their IRA directly to charity and avoid recognition of income. The act expands the QCD by allowing a one-time transfer of up to $50,000 to a charitable remainder annuity trust, a charitable remainder unitrust or an immediate charitable gift annuity.

This can be important in their tax and philanthropic planning. For more information how you can use this information, please contact Saling Simms Associates at (614) 841-1881 or (800) 360-7724.