Why IRA Donors are Important Planned Giving Prospects

Every year, if you are over 70.5 years old, you can support a cause you care about AND save on your taxes.  If you have an IRA, you can either take a required minimum distribution (RMD) or take a Qualified Charitable Distribution (QCD). The RMD would be taxable, while the QCD is not taxed.

It is the best of both worlds, the donor can support your mission and lessen their tax burden!

What is even better is that these donors are an important group to have the planned giving discussion with! Here are a few reasons why:

1. Age: This group is at an age where they think about their legacy more than ever before.  By directing a QCD to your organization, these donors show how committed they are to your mission. That commitment level is a great foundation for the planned giving conversation.
2. Thought: These donors are at an age where they are thinking about how to use their retirement resources. That thought process leads them naturally towards planned giving and how they continue supporting you.
3. Significant Resources: People donating from an IRA have accumulated significant resources through long-term planning. This makes them an ideal candidate to talk to about how to use their resources to help those you serve. 

The above three reasons are just the tip of the iceberg of why IRA donors are an important group to include in your planned giving communications. 

Typically, I have included IRA donors in my Legacy Society because they are making a gift out of their retirement account. This includes them in the society, allowing them to feel a part of the group and encouraging them to leave a planned gift.  

A QCD benefits you and the donor in the short run and opens up the larger discussion about planned giving.  Find this group in your database and continue educating them on the crucial work you do every day and how they can become an even bigger part of it through a planned gift!