A special giving opportunity that may be of interest to our donors:

On December 29 President Biden signed the Consolidated Appropriations Act of 2023 (“Act”). Contained in the provisions of the Act is the new Secure Act 2.0, which addresses many issues related to retirement planning. For example, starting in 2023 the Act raises the age for required minimum distributions (RMDs) to age 73 for individuals born between 1951-1959, and age 75 for those born in 1960 or later. The Act also allows a one-time transfer of up to $50,000 directly from an IRA to fund a charitable gift annuity (CGA). This new type of qualified charitable distribution is a once-in-a-donor’s-lifetime maximum transfer of $50,000 in exchange with a charity for a CGA.

A charitable gift annuity is a vehicle that pays guaranteed income for life to the beneficiary. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.  After making a lifetime of payments to you, the Foundation designates the remaining funds — 85% of the original gift— to the area of your choice.

The benefits of using your IRA/QCD to establish a charitable gift annuity include:

  • If you are 73 or older, your QCD contribution will count toward your annual required minimum distribution (RMD) from your IRA in the applicable year. (Note that the amount of a QCD that counts toward your RMD may be reduced by additions to a retirement account made after age 70½).
  • You will receive the security of a fixed income from a gift annuity for your lifetime and/or the lifetime of your spouse.
  • You will provide future support for the community. You may direct your gift annuity to the charitable causes most important to you.

If you have any questions, please contact Deborah Rothstein, the Hartford Foundation for Public Giving's Vice President of Development, at drothstein@hfpg.org or 860-548-3107.