A key benefit of a direct charitable contribution from an IRA to a nonprofit organization, such as Central Piedmont Community College (CPCC), is that the donation counts towards an individual's required minimum distribution. A gift from an IRA may also lower income taxes owed at year-end.
Another way to give is to designate a charitable interest as the beneficiary of an IRA. This allows a donor to make a future gift of assets while providing lifetime income to one's self or family members.
Benefits of an IRA contribution are threefold:
- A donor can fulfill charitable intent after income needs are met.
- Donors can provide an annual income for themselves or family members and the leftover balance to a charitable interest such as CPCC.
- Assets which typically carry a heavy tax burden can be left to a charity without the income or estate taxes.