California Lawyers Foundation

Making a Tax-Free IRA Distribution to the California Lawyers Foundation

By Linda D. Geery

I. INTRODUCTION

As you consider your 2022 tax planning and opportunities to support the California Lawyers Foundation, you might be interested to learn more about Qualified Charitable Distributions. Did you know that individuals aged 72 years and older must take required minimum distributions (RMDs)? Further, individuals can distribute their otherwise taxable IRA distributions directly to certain tax-exempt charities. Such distributions are known as qualified charitable distributions (QCDs). With a QCD, an individual can not claim a tax deduction for a charitable donation; however, directing the distribution from your IRA to a qualified charity is equivalent to a 100% tax deduction, regardless of whether you itemize your deductions. Furthermore, it will help keep your adjusted gross income down, which may have other tax benefits. The rules can be complicated, but the benefit can be significant. As with all tax planning, your specific benefit will be based on facts and circumstances. We suggest you talk about this tax planning opportunity with your tax advisor.

II. WHY SUPPORT THE CALIFORNIA LAWYERS FOUNDATION?

Formed in 2019, the California Lawyers Foundation is the charitable arm and partner of the California Lawyers Association. Both organizations share a common mission of promoting excellence, diversity, and inclusion in the legal profession and fairness in the administration of justice and the rule of law. An example of one recent project is the California Free Legal Answers Platform, which helps people navigate legal questions surrounding the COVID-19 pandemic, wildfires, and other disasters. The aid recipients were low-income residents who otherwise did not have access to legal services. Read more about the foundation’s work. The foundation is thankful for the support of our first group of Founding Fifty members. Read more about how they are increasing access to justice in California and beyond.

III. PARTNERING WITH CLF

CLF welcomes donations from individuals, firms, companies, and foundations to help support its growing list of projects. The Foundation has a Gift Acceptance Policy with details on how to contribute and the types of gifts accepted. In addition, CLF is interested in potentially co-sponsoring and supporting projects. To that end, the Foundation has created a Co-Sponsorship Policy that outlines the requirements. In addition, there are other ways to support the work CLF does. From Facebook campaigns to Amazon SMILE designations, there are numerous ways to take part in the Foundation. Visit the CLF website for more information.

Linda Geery, CPA is the Chief Financial Officer of the California Lawyers Association and the California Lawyers Foundation. As a shareholder at Gilbert CPAs, she is the shareholder-in-charge of the firm’s accounting services and tax departments.

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