IRA Charitable Rollovers: A Unique Way to Support the Atlantic-Pacific Tang Soo Do Foundation

For individuals seeking meaningful ways to support charitable causes, an IRA charitable rollover (also known as a qualified charitable distribution, or QCD) is a tax-efficient method that benefits both the donor and the recipient organization.

By leveraging an IRA charitable rollover, you can make a direct contribution to the Atlantic-Pacific Tang Soo Do Foundation (APTSD Foundation) while simultaneously reducing your taxable income.

This giving option has proven to be an impactful way for individuals to support nonprofits like the APTSD Foundation, helping fund leadership camps, scholarships, and programs for at-risk youth.

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What Is an IRA Charitable Rollover?

An IRA charitable rollover allows individuals aged 70 ½ or older to donate directly from their Individual Retirement Account (IRA) to a qualified nonprofit organization, such as the Atlantic-Pacific Tang Soo Do Foundation, without counting the distribution as taxable income. This type of donation is officially referred to as a Qualified Charitable Distribution (QCD).

Here’s how it works in simple terms:

  1. Eligibility: You must be at least 70 ½ years old to make an IRA charitable rollover.
  2. Direct Transfer: Funds must be transferred directly from your IRA custodian to the charitable organization (you cannot withdraw the funds yourself and then donate them).
  3. Donation Limit: You can donate up to $100,000 annually per individual. If both you and your spouse have IRAs, you may each donate up to $100,000, for a total of $200,000.
  4. Tax Benefits: The amount donated is excluded from your taxable income, and it can also count toward your Required Minimum Distribution (RMD) if you are 73 or older (as of 2023).
How an IRA Charitable Rollover Benefits the APTSD Foundation

The Atlantic-Pacific Tang Soo Do Foundation relies on donations to fund its programs and expand its impact. IRA charitable rollovers provide a reliable source of funding for initiatives that empower individuals and strengthen communities.

Here’s how your IRA donation helps the foundation:

1. Funding Leadership Camps

Leadership camps are at the heart of the APTSD Foundation’s mission. They provide at-risk youth with opportunities to develop discipline, leadership skills, and character in a supportive environment.

IRA rollover funds can help cover:

  • Camp activities, such as martial arts training, team-building exercises, and personal development workshops.
  • Lodging, meals, and transportation for participants.
  • Scholarships for youth who might otherwise be unable to attend.
2. Supporting Scholarships

Scholarships funded through IRA rollovers ensure that financial barriers don’t prevent individuals from accessing martial arts training and leadership programs.

These scholarships benefit:

  • At-risk youth, by providing them with tools to succeed and grow.
3. Sustaining Long-Term Growth

IRA donations provide a stable financial foundation that allows the APTSD Foundation to plan for the future. This includes expanding programs, developing new initiatives, and reaching underserved communities.

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How an IRA Charitable Rollover Benefits Donors

IRA charitable rollovers are not only beneficial to the nonprofit but also advantageous for the donors themselves.

Here’s how:

1. Tax Savings

One of the most significant benefits of an IRA charitable rollover is that the donated amount is excluded from your taxable income.

This can help:

  • Lower your overall tax liability for the year.
  • Reduce the tax impact of Required Minimum Distributions (RMDs) if you are 73 or older (as of 2023).

For example, if your RMD for the year is $10,000 and you donate $10,000 directly to the APTSD Foundation through an IRA rollover, you satisfy your RMD obligation while avoiding the tax on that distribution.

2. Simplicity

IRA rollovers are straightforward to execute. By working with your IRA custodian, you can arrange for a direct transfer to the APTSD Foundation without the need for additional paperwork or complicated processes.

3. No Need for Itemized Deductions

Even if you don’t itemize your deductions on your taxes, you can still benefit from the tax exclusion provided by an IRA charitable rollover. This makes it a great option for individuals who take the standard deduction.

4. Supporting a Cause You Care About

IRA charitable rollovers allow you to align your financial goals with your philanthropic values. By supporting the APTSD Foundation, you can contribute to programs that promote personal growth, community building, and leadership development.

How to Make an IRA Charitable Rollover to the APTSD Foundation

If you’re interested in making an IRA charitable rollover to the Atlantic-Pacific Tang Soo Do Foundation, the process is simple:

  1. Contact Your IRA Custodian: Reach out to your IRA custodian (the financial institution managing your account) to inform them of your intention to make a Qualified Charitable Distribution.
  2. Provide the Foundation’s Details: You will need to provide the APTSD Foundation’s legal name, address, and tax identification number. This ensures that the funds are sent directly to the foundation.
  3. Specify the Amount: Decide how much you want to donate (up to $100,000 annually).
  4. Confirm the Transfer: Your IRA custodian will transfer the funds directly to the APTSD Foundation. Once the transfer is complete, the foundation will provide you with a receipt for your records.
Complexities of IRA Charitable Rollovers (Simplified)

While the concept of an IRA charitable rollover is straightforward, a few nuances are worth noting:

  • Direct Transfer Is Required: The funds must be transferred directly from your IRA custodian to the APTSD Foundation. If you withdraw the funds and then donate them, the distribution will be taxable.
  • Eligible Accounts: Only traditional IRAs are eligible for QCDs. Roth IRAs and other retirement accounts, such as 401(k)s, do not qualify unless they are rolled over into a traditional IRA first.
  • Annual Limit: The $100,000 annual limit applies per individual, not per IRA account. If you have multiple IRAs, the total contributions from all accounts cannot exceed $100,000.
  • Timing Matters: To count toward your RMD for the current year, the donation must be completed by December 31.
Making a Lasting Impact

IRA charitable rollovers offer a unique opportunity to support the Atlantic-Pacific Tang Soo Do Foundation while enjoying financial benefits.

Your contribution helps fund life-changing programs, from leadership camps to scholarships, that empower individuals and strengthen communities.By leveraging your IRA, you can ensure that your hard-earned savings are put to good use, transforming lives through the art of Tang Soo Do.

Whether you’re passionate about helping at-risk youth, your IRA donation can make a lasting impact.

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Rollovers: A Simple, Powerful Way to Give

IRA charitable rollovers are a win-win solution for donors and nonprofits alike. They offer a tax-efficient way to support meaningful causes while benefiting your financial plan.

For the Atlantic-Pacific Tang Soo Do Foundation, these contributions translate into expanded opportunities, stronger programs, and greater reach.If you’re ready to make a difference, consider an IRA charitable rollover to the Atlantic-Pacific Tang Soo Do Foundation.

Together, we can continue to empower individuals, build communities, and create a brighter future.