GIVE
Send a Check
To give by mail, make your check payable to CCCF:
Mail your check to:
Cheboygan Community Foundation
PO Box 494
Cheboygan, MI 49721
Tax Benefits
Please read—this could save you money
Recent changes to tax law mean that most people no longer benefit from itemizing deductions, including charitable contributions. Because the standard deduction is now relatively high, many taxpayers receive no additional tax benefit from charitable giving beyond what they already receive from the standard deduction.
However, there is an important exception for individuals age 70½ and older that allows charitable giving to reduce taxes—even if you do not itemize.
Required Minimum Distributions (RMDs)
Once you reach the required age (currently 73 for most people), you must begin taking Required Minimum Distributions (RMDs) from your traditional IRA. These distributions are treated as taxable income.
For example, if you are in a 25% federal tax bracket:
A $1,000 RMD creates about $250 in federal income tax, plus any applicable state taxes.
The Tax-Smart Strategy: Qualified Charitable Distributions (QCDs)
If you are 70½ or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to a qualified charity.
Here’s how it works:
- Instead of receiving your RMD and then donating cash,
- You instruct your IRA custodian to send the funds directly to the charity
- That amount:
- Counts toward your RMD
- Is not included in your taxable income
Using the earlier example:
- A $1,000 QCD can save you $250 in federal taxes, plus state income taxes
- Larger gifts result in even greater tax savings
Why This Benefits You
- You support a cause you care about
- You reduce taxable income—even if you don’t itemize
- You may lower taxes on Social Security benefits and Medicare premiums
You meet your RMD requirement in a tax-efficient way
Important Notes
- QCDs apply to IRAs (not 401(k)s or 403(b)s unless rolled into an IRA)
- The check must be made payable directly to the charity
Always confirm details with your tax or financial advisor