A Word to the Wise on Donating to Nonprofits

by Valerie Stabenow, WGF Board Member; edited by Carolyn Pralle, WGF Communications and Outreach Coordinator

Editor’s Note: This post was prepared by Valerie Stabenow, WGF Board Member. Here, she shares information about financial options people have when giving to nonprofits like Wisconsin’s Green Fire (WGF). Learn more about ways to give to WGF here. Please contact us with any questions.

Northwoods Pines and Birches in Vilas County, WI, Photo by Carolyn Pralle, January 2025

A Word (or two) to the Wise

If you reached a birthday milestone this year (generally age 73), you now have a new task to add to your financial worklist. The government requires you to make a Required Minimum Distribution (RMD) from your tax-free retirement account(s).

The exact amount is calculated on the balance in the account(s), so it differs from person to person. If you are already required to make a minimum distribution, please consider the following.

You have options for managing this distribution.

One option is to donate the distribution (or part of it) as a QCD (Qualified Charitable Distribution). The organization has to be ‘qualified,’ an IRS designation for tax-exempt 501(c)(3) organizations.

• Wisconsin’s Green Fire fits that definition of a qualified organization.
• WGF’s Employer Identification Number (EIN) is 82-3383564.

The donation is usually transmitted in the form of a check from the investment company that manages your tax-free account. The check must be made out in the name of the Qualified Charity (e.g., Wisconsin’s Green Fire). By making this donation directly to the charity, you will not have to pay income tax on that amount.

If you chose to take the RMD for yourself, you would add that amount to your Adjusted Gross Income (AGI) and have to pay income tax on it. If you plan to make a donation to Wisconsin’s Green Fire for 2025, using this method to disperse your Required Minimum Distribution directly to a Qualified Charity (instead of writing a personal check) makes good sense.

As in all things financial, consult your tax advisor before making any decisions.

The information here is provided as a suggestion for managing your Required Minimum Distribution as well as helping to support the work of Wisconsin’s Green Fire.