Qualified Charitable Contributions

Student and teacher in Lower School

Smart Giving Through Your IRA

A Tax-Advantageous Method to Support Minnehaha Academy

Maximize your impact today and qualify for tax benefits by supporting Minnehaha Academy through your IRA.

For Individuals Aged 70½ and Above

Donors can allocate any sum (capped at $100,000 annually) directly from their IRAs to a recognized charity like Minnehaha Academy without incurring income tax liabilities on these funds. This method of giving, also known as the IRA charitable rollover, is also commonly called a Qualified Charitable Distribution (QCD).

Why Give This Way?

  • See immediate impact: Putting your donation to work right away allows you to see first-hand the impact you make.

  • Meet your RMD requirement: Starting from when you turn 73, your contributions can be applied towards meeting all, or part, of your required minimum distribution (RMD) or your IRA.

  • Pay no income taxes: Your donation remains exempt from income taxes. It does not generate taxable income or a tax deduction, meaning it benefits you even if you don't itemize deductions.

  • Does not count as income: As this type of donation does not count as income, it could potentially lower your income bracket. This could also reduce your Medicare premiums and could lower taxable portions of your Social Security.

For Individuals Aged 59½ or Older

If you are aged 59½, you are still able to direct a distribution out of your IRA to make a charitable gift to charities, like Minnehaha Academy, without penalties. If you itemize your tax deductions, you can also lower your taxes by the amount you gave to charity.

For All Ages

Regardless of your age, you can designate Minnehaha Academy as the beneficiary of your IRA in its entirety or a specific portion, ensuring your impact with us is a tax-free transition after your lifetime. The process is simple and intuitive, only requiring that you work with your IRA administrator for a change-of-beneficiary form (often found on your service provider's online portal).

Please note: Communication is important! Many popular retirement plans providers do not automatically inform charities of your bequests. Additionally, they usually don't follow up to ensure that your donation designations are duly honored. We would be honored to discuss your intentions to make sure they are followed.

Thank you for your generosity!