Qualified Charitable Distributions / Required Minimum Distributions

Designating your Required Minimum Distributions (RMDs) to a nonprofit is typically done through a Qualified Charitable Distribution (QCD). This allows individuals aged 70½ or older to donate directly from their IRA and potentially reduce their taxable income. As a 501(c)(3) nonprofit, FRBC is a qualified charity and is eligible to receive tax-deductible donations. Benefits of these vehicles are to reduce your taxable income, potentially helping avoid higher tax payouts. Private foundations, donor-advised funds, and supporting organizations typically do not qualify.

Step-by-Step: Making a Qualified Charitable Distribution

(QCD) to FRBC Ensure Eligibility: You must be 70½ years or older at the time of the distribution. The donation must come from a traditional IRA (not a 401(k) or other retirement account). You can donate up to $100,000 per year ($200,000 for a married couple with separate IRAs).

Request the QCD Through Your IRA Custodian: Contact your IRA administrator and request a direct transfer from your IRA to the charity. Note: The funds must not pass through your hands (i.e., no personal check or deposit first).

Provide FRBC’s information:
Legal name: Far Reaches Botanical Conservancy
Tax ID number (EIN): 82-2313514
Mailing address: 1818 Hastings Ave., Port Townsend WA 98368
360-385-5114
plants@farreachesbotanicalconservancy.org

Example Language to Use with IRA Custodian:

“Please process a Qualified Charitable Distribution from my IRA to Far Reaches Botanical Conservancy in the amount of $[amount]. Make the check payable directly to the organization, and send it to their mailing address. Include my name and address so they can send an acknowledgment.”

Upon receipt of the contribution, FRBC will send you an acknowledgment letter confirming the donation amount and that no goods or services were received in exchange. Keep this for your tax records, and report it correctly on your taxes. Even though the distribution is non-taxable, it must still be reported. The QCD amount should be noted on Form 1040, usually with the taxable amount as zero and a note like “QCD” next to it.