Q&A: Tax-free Benefits of Giving Through Your IRA

Charitable giving from your IRA may be a smart, tax-wise way for you to make a meaningful gift to support quality healthcare. Known as a charitable IRA rollover or qualified charitable distribution (QCD), this type of gift allows your donation to be made with funds from your IRA transferred directly to Baystate Health Foundation.

What are the benefits of giving through a charitable IRA rollover?

You have the joy of making a difference for the area of Baystate Health that matters most to you. Plus, the gifted distribution will not count toward your taxable income or be subject to withholding. Instead of taking your required minimum distribution, paying taxes on it, and making a separate gift to Baystate Health Foundation, you may gift part or all of your required minimum distribution. You save yourself taxes and make an impact.

How can I make a charitable donation from my IRA?

Contact your IRA administrator to request that a charitable distribution be transferred directly to Baystate Health Foundation (Federal Tax ID #: 04-3549011). They may have a specific form for you to complete, you may be able to submit changes online, or they may accept a letter. We would be happy to provide you with a sample letter.

What if I want to support a specific hospital or program at Baystate Health?

While Baystate Health Foundation is the receiving arm for all donations to Baystate Health, you can choose to designate your support to a program or department most meaningful to you. Simply reach out to Baystate Health Foundation via phone, email, or mail and our team can help ensure your gift goes where it makes the difference that matters most to you.

How much can I donate from my IRA?

Gifts of all sizes make a difference. You may gift any amount up to $100,000 in a calendar year. To be eligible for benefits in your 2022 taxes, your funds must be transferred to Baystate Health Foundation by December 31, 2022.

How old must I be to benefit from donating through a charitable IRA rollover?

You must be 70 ½ or older at the time the gift is made.

Learn more: A member of the Baystate Health Foundation team is happy to help. Contact us at 413-794-5444.

Before proceeding, please consult with your tax advisor to discuss your particular situation, including any impact of your state’s tax laws.