Whoa! That is way too many acronyms for such a short sentence! Don’t worry, we’ll unpack it for you - but please follow along, because this is a wonderful opportunity unique to In His Steps Foundation fundholders.

Once you reach age 73, you are required to take an annual required minimum distribution (RMD) from your traditional individual retirement account (IRA) and some other types of retirement accounts. You will be taxed on this income, even if you don’t need or want the income this year.

Traditionally the IRS has allowed taxpayers to make a qualified charitable distribution (QCD) to a nonprofit organization instead of receiving this money as taxable income. The benefit is that you get to support an organization(s) important to you without being taxed on unnecessary income.

One downside is that the IRS does not allow you to donate this amount to a donor advised fund (DAF). This restriction is frustrating to many donor advised fundholders who value the many benefits of using a DAF for charitable giving. In His Steps Foundation has created an easy way to workaround this restriction, by allowing you to donate your RMD to our General Fund. We’ll track the amount of your contribution as a sub-fund of our General Fund. Just as you would recommend a grant from your DAF, you can contact the foundation in writing to recommend a grant from your IRA sub-fund. The staff will process this grant just as if it were a grant from your DAF.

We hope you consider this unique opportunity to empower your charitable giving potential – or pass it along to somebody at the right age to take advantage of it.

If you have any questions, please contact IHS Foundation President, Ben Lee, directly: benlee@ihsfound.org | 330.528.1785