Family Health Foundation of Illinois – Required Minimum Distribution

One of the highlights of the Foundation’s vision is to encourage philanthropic endeavors that will support the growth of family medicine in Illinois.  Former IAFP President & Foundation Chair Ed Blumen, MD, MBA, FAAFP, was the first person to implement the RMD as a donation to the Family Health Foundation of Illinois. When asked why he and his wife made the decision to support the foundation, Dr. Blumen said, “Family Medicine has supported our family throughout my entire career. As I entered my senior years of practice we wanted to help the future of my chosen profession by donating to the IAFP Foundation.”

There are, of course, tax implications and specifications for this type of donation. Once you reach the age of 72, if you own an IRA or other qualified retirement plan, you must begin taking the Required Minimum Distribution (RMD). If you are interested in a tax strategy through gifts of support, you can donate that some or all yourRMD to the Family Health Foundation of Illinois and support our 2020-2021 programs.  A Qualified Charitable Distribution is an otherwise taxable distribution from a retirement account owned by an individual age 72 or older.  The funds are paid directly from your IRA to a qualified charity of your choice. The annual limit is $100,000 per person.  This donation strategy will benefit you!

1)     Helps satisfy your annual required minimum distribution (RMD) up to the amount you gift.

2)     Allows you to give from a pre-tax asset and your distribution is excluded from taxable income.

3)     Helps avoid limits on charitable deductions and prevents you from being pushed into a higher tax bracket.

4)     Simplifies the giving process. It’s easy - just notify your IRA or plan custodian.

You can choose to direct your Qualified Charitable Distribution to the Family Health Foundation of Illinois at the address above. If you are in a position where you do not need to KEEP your required minimum distribution, consider our foundation as a place to GIVE and invest in the future of family medicine.  Contact Jennifer O’Leary, Foundation executive director at [email protected] or call 800-826-7944.