Act NOW for 2017 planning! Talk to your tax planner before year-end!

Planning for 2017 taxes could help you AND Impact 100

  • Yes, Impact 100 accepts stock donations!
  • Yes, you can pre-pay your 2019 membership!
  • Yes, we are an all-volunteer non-profit but we DO have overhead expenses, including credit card fees, website, social media, postage, recruitment events, and public relations. Donate to “Friends of Impact” before year-end for a 2017 write-off!
  • Do you know someone who would like to join Impact 100 Greater Indianapolis but could use some help in the process? Yes, you can sponsor a friend, daughter, granddaughter, or co-worker!
  • Do you own a business or know someone who does?
    • We accept corporate sponsorships to offset the annual budget and will acknowledge the sponsor on our website, events, and other media outlets
    • Businesses can sponsor employees’ memberships either in entirety or through matching

Charitable Contributions from IRAs

The Pension Protection Act of 2006 first allowed taxpayers age 70½ and older to make tax-free charitable donations directly from their IRAs. By making a qualified charitable distribution (QCD) from an IRA directly to a qualified charitable organization, such as Impact 100, older IRA owners were allowed to exclude up to $100,000 annually from gross income. These gifts, also known as “charitable IRA rollovers,” would otherwise be taxable IRA distributions. The law was originally scheduled to expire in 2007, but was extended periodically through 2014 by subsequent legislation and finally made permanent by the Protecting Americans from Tax Hikes (PATH) Act of 2015.

Why are QCDs important?

Without this special rule, taking a distribution from your IRA and donating the proceeds to a charity would be a bit more cumbersome and possibly more expensive. You would request a distribution from the IRA and then make the contribution to the charity yourself. You would include the distribution in gross income and then take a corresponding income tax deduction for the charitable contribution. But due to IRS limits, the additional tax from the distribution may be more than the charitable deduction.

QCDs avoid all this by providing an exclusion from income for the amount paid directly from your IRA to the charity–you do not report the IRA distribution in your gross income, and you do not take a deduction for the QCD. The exclusion from gross income for QCDs also provides a tax-effective way for taxpayers who do not itemize deductions to make charitable contributions.

Concentrated Stock Positions:

  • Donate shares to charity: You receive a tax deduction when you make the contribution.
  • Managing a concentrated stock position is a complex task that may involve investment, tax, and legal issues. Consult professionals who can help you navigate the maze.
  • Of an estimated 148.1 million federal income tax returns filed for the 2014 tax year, just under 44 million claimed itemized deductions.

Source: Individual Income Tax Returns Publication 1304 (Complete Report), IRS.gov , 2/10/17