…than the IRS!

It sounds crazy, but it’s true if you’re over 72. That number means once you reach that age, you have to start taking money out of your accounts that haven’t been taxed (aka qualified accounts) every year till they’re depleted. This is commonly referred to as a Required Minimum Distribution (RMD) and your donors are very aware of it. But you might be able to teach them something new…

Your donors will understand that when assets are withdrawn from qualified accounts, the distribution is automatically taxed. Why? Because it hasn’t ever been taxed and the IRS keeps very good tabs on what has and has not been taxed. But if your donor is over 72 and has an IRA, they can write a check directly from that account – to your organization – and skip the IRS. It’s that easy.

For more information about RMDs, check out this article.