Giving

If you’re 70½ or older, you can donate directly from your IRA to charity, without the amount counting as income on your tax return. This is called a Qualified Charitable Distribution (QCD). The best part? You won’t pay tax on the distribution, so the charity receives the full amount.

This is especially beneficial for those required to take Required Minimum Distributions (RMDs). IRA owners 72 or older must withdraw a set percentage each year based on their age. By donating some (or all) of that amount directly to charity, you can avoid taxes, and it counts toward the RMD requirement—up to $100,000 annually.

A QCD may also help lower your Medicare premiums. Since premiums are based on modified adjusted gross income, reducing income through a QCD can keep you from moving into a higher premium bracket.

Importantly, a QCD isn’t counted as income, so you don’t need to itemize deductions. However, if you do itemize, keep in mind that QCDs cannot also be claimed as an itemized charitable deduction.

Making a QCD donation is simple: Just ask your IRA trustee to issue a check payable to:

Seneca Lake Pure Waters Association
PO Box 247
Geneva, NY 14456

If you have stocks or mutual funds that have appreciated over time, selling them could trigger significant capital gains taxes. A tax-savvy way to avoid those taxes while still receiving a full charitable deduction (if applicable) is by directly donating highly-appreciated securities to a qualified charity.

To qualify, securities must be held for more than one year, and it’s best if they are common, publicly traded shares. Donating securities directly avoids the capital gains taxes that would apply if you sold them first and then donated the proceeds. If you itemize deductions, the full value of the securities is tax-deductible.

Seneca Lake Pure Waters Association has an account with Morgan Stanley to accept securities donations. Here’s how to make a donation:

1. Instruct your broker to transfer securities to the following account:

   • Account Number: 056-021994-503 (Seneca Lake Pure Waters Association)

   • DTIC Number: 0015

   • Specify the security name, symbol, and the number (or approximate value) of shares you wish to donate.

   • For questions, contact: Tom LaCrosse at Morgan Stanley, 585-264-5833 or Tom.LaCrosse@morganstanley.com

2. Notify us once the transfer has been initiated by emailing info@senecalake.org and copying Tom.LaCrosse@morganstanley.com. Please include:

   • Your name and contact information.

   • The security symbol (and/or name) and the number of shares.

3. After the transfer is confirmed, we will send an acknowledgement and receipt with the donation valuation.