Talking Turkey and Taxes

Talking Turkey and Taxes
By Jackie Glodstein

Thanksgiving has come and gone and I hope everyone enjoyed the day with good friends and family. With this annual celebration in the rear-view mirror, we’re officially into the holiday season.

In the non-profit world, Thanksgiving also kicks off the peak-giving period, a time when individuals open their wallets to support the causes that are near and dear to them. To make the most of this season, consider having a solid marketing strategy in place.

One strategy to consider is to create different fundraising messages for different segments of the population.

For instance, donors who make up the Silent Generation (born 1945 and earlier) might be interested to know they can make donations to a charity directly from their IRA. Not only will they be supporting a cause that’s important to them, they’ll also save money on their taxes. Nothing wrong with that, right?

This transaction is called a Qualified Charitable Distribution (QCD) and there are a few things to know about it. First, funds must come from a traditional IRA or Roth IRA, second, it’s available only to people 70.5 years or older and third, donations cannot exceed $100,000.

As for the tax benefits, according to Kiplinger.com, any amount processed as a QCD counts toward your required minimum distribution requirement and reduces the taxable amount of your IRA distribution. This lowers both your adjusted gross income and taxable income, resulting in a lower overall tax liability.

Segmenting your communication can pay big dividends because messages will resonate with donors on a personal level. So consider targeting different age groups with information that’s relevant to them.

Do you have ideas for reaching other generations like Millenials, Gen X’ers and Baby boomers? If so, share your comments below.