Donna Lee Maximizes her Food Bank Donation While Avoiding Taxes
Donna Lee has been involved with the world of food for most of her life. She grew up in Nebraska and Iowa and studied food journalism at Iowa State. She was food editor at the Boston Herald and later went on to become food editor for The Providence Journal Bulletin from 1982 until she retired in 2001.
As a Food Bank Board member for many years, Donna has served on countless fundraising event committees, and remains an active member of the Food Bank’s honorary Board of Directors today. So it was only natural for her to recognize the benefits of making a charitable contribution through her IRA to support an organization she cares for so deeply.
The IRA charitable rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes. In addition, a rollover donation counts toward your required minimum distribution.
“I like to donate to charities such as the Food Bank with a tax-free transfer from my IRA,” says Donna. “It means more money for the Food Bank, no taxes for me. Suppose your combined federal and state tax rate is 33%. If you withdraw $1,000 of income from your IRA, you pay $330 in taxes and net $670. Then you have only $670 to donate to the Food Bank. Wouldn’t you be happier if that $330 also went to the Food Bank instead of the IRS?” asks Donna.
“I’m happy about saving on taxes and happy to help the Food Bank provide food to Rhode Islanders in need. The Food Bank is very efficient in using its donations to combat hunger in RI. It’s a goal I care about deeply. The more I can help, the better I feel. And, I can’t bear to think of people going hungry.”
Learn more about making an IRA charitable rollover from your IRA.