Making an Impact

Give Smarter with Your IRA

Winter •

Support mental health at Sheppard Pratt while maximizing your tax benefits through your individual retirement account (IRA)

Why give from your IRA? Four powerful reasons this is the smartest way to support mental health:

  1. Pay zero taxes: your gift is excluded from taxable income entirely—as if you never withdrew the money at all
  2. Satisfy your required minimum distribution (RMD): counts toward your RMD without increasing your tax burden
  3. Lower other costs: reducing taxable income may decrease Medicare premiums and Social Security taxation
  4. Maximum impact: 100% of your gift supports mental healthcare—no itemizing needed, just pure giving

The difference is dramatic! See how giving from your IRA compares to a traditional donation.

Traditional Method

  • Withdraw $100,000 from your IRA
  • Pay approx. $37,000 in federal income taxes
  • Donate remaining $63,000 to charity
  • Maybe get a deduction (if you itemize)
  • Still increases taxable income and Medicare premiums

IRA Charitable Distribution

  • Direct transfer of $100,000 to Sheppard Pratt
  • Pay $0 in income taxes
  • Satisfies required minimum distribution
  • Doesn’t increase taxable income
  • Full $100,000 helps mental healthcare

How to make your gift:

  1. Contact your financial advisor;
    1. Call your financial advisor (Fidelity, Vanguard, Schwab, etc.) and tell them you want to make a qualified charitable distribution.
    2. Exactly what to say: “Hi, I’d like to make a qualified charitable distribution from my IRA to Sheppard Pratt. Can you help me with that?”
    3. Have the following ready:
      1. Your IRA account number
      2. Amount you want to donate (up to $105,000)
      3. Confirmation you’re 70 ½ years old or older
  2. Provide Sheppard Pratt’s information. Give your advisor these details. They’ll handle the paperwork and direct transfer.
    1. Name: Sheppard and Enoch Pratt Foundation, Inc.
    2. Address: 6501 N Charles St., Baltimore, MD 21204
    3. Tax ID: 52-1357109
    4. Phone: 443-826-7217
  3. You’re done! What happens next:
    1. The financial advisor mails a check to Sheppard Pratt
    2. You’ll receive confirmation from your financial advisor
    3. You’ll receive a thank you receipt from Sheppard Pratt
    4. You report on Form 1040 at tax time 

Important: Complete by Dec. 31 to count for this tax year. Start early to allow for processing time!

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