“I’m sending you a donation from my retirement account. I consider myself very lucky to be able to send these funds to an organization whose mission speaks to me and supports those fighting back against some of the worst abuses of the current administration.”

This note, and others like it, accompanied recent Required Minimum Distribution (RMD) donations of all sizes to the RFC. RMD represents an important and growing source of support for us. Clearly, a reliable source of donations is invaluable to the RFC, but RMD can also be enormously beneficial to donors.

When individuals write a check or have funds electronically transferred directly from their retirement account to a qualified charity, they don’t have to pay a penny in taxes on the full amount of their donation. Making charitable contributions can also help donors avoid being pushed into a higher tax bracket, since withdrawals are taxed as ordinary income (this is worth discussing with your accountant or tax advisor).

Individuals who inherit accounts with stocks for companies whose values they do not support (for example fossil fuel stocks or defense contractors) can take a distinct pleasure in donating the proceeds from selling these holdings to social justice non-profits that share their values. Some donors choose to discuss their charitable contributions with children, grandchildren or other youngsters in your life. This is an opportunity to transmit your values to the next generation.

We hope you'll consider donating your RMD to the RFC, now or in the future. If you decide to donate in this manner and need additional information to process the contribution, feel free to contact the RFC at info@rfc.org.

*Rules for making charitable donations from various types of retirement accounts, including 401ks and 403bs, vary. Contact your account custodian or advisor for specific rules for your plan/situation.

Note: this information is adapted from a fall 2023 guest blog by Christina Platt (available on our blog page). Christina Platt has been an RFC board member for more than a decade and is currently the Board Co-Chair. Before that, she was the RFC’s socially responsible (SRI) investment advisor.