ALPENA – Charitable giving through an individual retirement account (IRA) has become an increasingly popular way to make donations. The Community Foundation for Northeast Michigan has seen an increase in these types of donations over the past several years. According to CFNEM, new tax laws and a growing awareness of the benefits of giving through IRAs has attributed to the growth in this type of giving.
“We have seen a significant jump in the number of donations from IRAs, as well as in the total giving amounts from our donors’ generous gifts,” says CFNEM Executive Director, Patrick Heraghty. “One of the reasons it has become so popular is because it can be done tax free. During a time of increased demands on the services nonprofits provide, charitable giving can make a huge difference close to home. More people are realizing that giving this way can be impactful for the community and be beneficial to the donor.”
While a donation from an IRA can be made at any time to a charitable organization, the Community Foundation staff points out that Giving Tuesday, on November 30, 2021, may be the perfect time for giving such a gift.
Those looking to make charitable donations through an IRA distribution should contact their tax professional, as the benefits could be substantial.
CFNEM’s service area also includes that of three affiliate foundations: Iosco County Community Foundation, North Central Michigan Community Foundation and Straits Area Community Foundation.
