Give from an IRA to save on taxes in the USA

James and Kathy Smithson have been part of the Children International family for over 23 years. When asked why they have chosen to make an impact for so many years through our organization, Kathy responded, “We like your organization. We love what you do. We like how much of the funds get to the children. We can see results from the funds we give by seeing how they are used. It means a lot to us to get pictures and letters, so we stay connected with the children and families we get to help.”

In 2022, James and Kathy changed from giving cash to giving through their IRA. “Since James was over 73 years old, he qualified to give from his IRA to charity,” Kathy explains. “When we found out we can save on taxes giving this way, it was a ‘no-brainer’ to do this. It is so easy and has become seamless for us to give this way.”

People who are age 73 must take a minimum distribution from their retirement accounts each year. If the funds are sent to the donor, they are taxed. If the funds are sent directly to a charity from the company that holds the retirement account, the person is not taxed (which means on the front page of their taxes they do not need to declare that money as income).

If you or a donor you are working with wants to know more about this wonderful way to make an impact on the children we serve while saving taxes, please contact Dianna Stelter at 816-943-3834 or dstelter@children.org.