Tax Efficient Giving from Your IRA
With so many financial demands on your plate, it can be hard to find the extra funds to give to the causes you care about most. And for many people, one core cause is the ministries they care about. If you own an individual retirement account (IRA), there’s a tax-efficient way you can give from it: Donating your required minimum distribution (RMD) from your IRA to a ministry through a qualified charitable distribution (QCD).
What is a required minimum distribution (RMD)?
A required minimum distribution, or RMD, is the minimum amount of money you must withdraw from a tax-deferred retirement plan after you reach a certain age (typically 73 or 75 years of age).
What is a qualified charitable distribution (QCD)?
A qualified charitable distribution (QCD) is a direct transfer of funds, up to $108,000 (indexed for inflation) in 2025, from your IRA to a qualified charity, which can include Lake Lundgren. You must be 70½ or older to do a QCD.
Because your IRA custodian (the bank or financial institution that holds your IRA) sends these funds directly to your church or charity of choice, your contribution is not taxed. Again, this applies to your IRA if you are 70 ½ or older.
What are the benefits of giving your RMD to LLBC?
Giving your RMD through a QCD can provide you with a means to give to Lake Lundgren that you may not have otherwise. Doing so also can:
- Satisfy your RMD. A QCD counts toward your annual RMD if it comes directly out of your IRA. You can give up to the full amount of your RMD (as long as it’s under $108,000 in 2025), or donate part and withdraw the remainder.
- Provide tax relief. Because you never directly touch those funds in a QCD, you can reduce or avoid the taxes you would incur by taking your RMD otherwise. Additionally, QCDs lower your adjusted gross income (AGI) and therefore potentially reduce taxes on Social Security and avoid increased Medicare premiums.
- Support your camp’s mission and ministry. Like other charitable contributions, a QCD is a way for you to practice generosity while also furthering Lake Lundgren’s mission.
Giving a QCD
The process for completing a QCD to support Lake Lundgren Bible Camp is relatively straightforward. Here’s what you need to do.
- Contact LLBC (715-324-5457) to give them a heads up.
- Work with your advisor or the IRA custodian to make a donation to LLBC.
- LLBC information for Donation:
- Official Name: Lake Lundgren Bible Camp
- EIN: 39-6076927
- Address: N18250 Lake Ln Pembine WI 54156
Disclosure: The information provided is for general educational purposes only and should not be considered legal, accounting, or investment advice. Please consult with a qualified attorney, accountant, or financial advisor for guidance specific to your situation.
