Permalink Submitted by Alan - IRA critic on Tue, 2024-07-02 00:02
Do you mean 501(c)(3)?
Are you referring to the new Secure 2.0 provision that allows a one time QCD to be made for up to 53,000 to a split interest entity such as a charitable gift annuity or CRUT (charitable remainder unitrust). If so, a trust and estates attorney could draft the trust. Large organizations such a Fidelity Charitable may offer this service.
Permalink Submitted by gautam SHAH on Tue, 2024-07-02 17:10
thank you for response. I am looking for using QCD for 2025 to 501<c> <3> trust formed here and wants to use some funds to benefit charity in india. also is new provison allows additional 53k besides max QCD amount?
Permalink Submitted by Alan - IRA critic on Tue, 2024-07-02 20:19
The 501(c)(3) organization can be established to benefit a foreign charity. Donations to that organization made as a direct QCD should qualify. I don’t know if the 501(c)(3) organization that can funnel donations to the Indian charity offers a CRUT to which you could donate up to a one time limit of 53k as a QCD. You will have to ask them.
The 53k one time limit is a portion of the overall QCD limit of 105k. It is not a separate limit.
Permalink Submitted by gautam SHAH on Tue, 2024-07-02 22:21
thank you, can i directly send QCD amount to religeous charity?what kind charitable trust they need? do i need to have swab verify it is acceotable to IRS from USA?
Permalink Submitted by Alan - IRA critic on Tue, 2024-07-02 22:59
The charity will receive more from a regular direct QCD, which is much simpler. Apparently, 53k is too small to justify an organization providing a charitable remainder trust, which leave you with a charitable gift annuity as the only option for the 53k one time transfer. But since the gift annuity pays you taxable income for the rest of your life, the amount left for the charity is substantially reduced. The charity would be much happier with a direct QCD where they get the full amount now. I would call Schwab Charitable and ask to talk to them about a charitable gift annuity and how it works. Note that you since this is a one time transfer, you can never add to it. It would reduce your taxable RMD for only the year of the transfer, but after that is pays you an annuity payment each year that is taxable, so will actually increase your taxable income in later years.
Permalink Submitted by gautam SHAH on Wed, 2024-07-03 16:20
Thank you. you are always detailed about answers. I have IRA and drawing RMD . I want to give 100k every year to qualified trusts via QCD SO I can totally reduce my RMD and charity or if possible multiple charities gets full benefit. My goal is to support religeous trusts some educational and help needy in india also i want portion to go for same purpose in usa. How do i know IRS will not disallow charitable trust in india before giving money.
Permalink Submitted by Alan - IRA critic on Tue, 2024-07-02 00:02
Do you mean 501(c)(3)?
Are you referring to the new Secure 2.0 provision that allows a one time QCD to be made for up to 53,000 to a split interest entity such as a charitable gift annuity or CRUT (charitable remainder unitrust). If so, a trust and estates attorney could draft the trust. Large organizations such a Fidelity Charitable may offer this service.
Permalink Submitted by gautam SHAH on Tue, 2024-07-02 17:10
thank you for response. I am looking for using QCD for 2025 to 501<c> <3> trust formed here and wants to use some funds to benefit charity in india. also is new provison allows additional 53k besides max QCD amount?
Permalink Submitted by Alan - IRA critic on Tue, 2024-07-02 20:19
The 501(c)(3) organization can be established to benefit a foreign charity. Donations to that organization made as a direct QCD should qualify. I don’t know if the 501(c)(3) organization that can funnel donations to the Indian charity offers a CRUT to which you could donate up to a one time limit of 53k as a QCD. You will have to ask them.
The 53k one time limit is a portion of the overall QCD limit of 105k. It is not a separate limit.
Permalink Submitted by gautam SHAH on Tue, 2024-07-02 22:21
thank you, can i directly send QCD amount to religeous charity?what kind charitable trust they need? do i need to have swab verify it is acceotable to IRS from USA?
Permalink Submitted by Alan - IRA critic on Tue, 2024-07-02 22:59
The charity will receive more from a regular direct QCD, which is much simpler. Apparently, 53k is too small to justify an organization providing a charitable remainder trust, which leave you with a charitable gift annuity as the only option for the 53k one time transfer. But since the gift annuity pays you taxable income for the rest of your life, the amount left for the charity is substantially reduced. The charity would be much happier with a direct QCD where they get the full amount now. I would call Schwab Charitable and ask to talk to them about a charitable gift annuity and how it works. Note that you since this is a one time transfer, you can never add to it. It would reduce your taxable RMD for only the year of the transfer, but after that is pays you an annuity payment each year that is taxable, so will actually increase your taxable income in later years.
Permalink Submitted by gautam SHAH on Wed, 2024-07-03 16:20
Thank you. you are always detailed about answers. I have IRA and drawing RMD . I want to give 100k every year to qualified trusts via QCD SO I can totally reduce my RMD and charity or if possible multiple charities gets full benefit. My goal is to support religeous trusts some educational and help needy in india also i want portion to go for same purpose in usa. How do i know IRS will not disallow charitable trust in india before giving money.