Engaging Retirement-Age Donors

At the Community Foundation, we regularly discuss the tax benefits of Qualified Charitable Distributions and leaving bequests of IRAs to a donor-advised fund with retirement-age donors and fund holders. However, philanthropy for retirees and those approaching retirement can offer much more than just financial benefits. This is particularly relevant as some retirees consider returning to work and what that means for their charitable giving and volunteering plans.

The Changing Landscape of Retirement

You’ve likely heard the statistic that 10,000 people in the United States turn 65 every day. Although 65 is considered the “traditional” retirement age, this milestone is becoming less traditional. Covid-19 did not significantly impact retirement ages as much as some predicted, but many who retired now regret it. While some retirees seek work for financial reasons, boredom and loneliness are also significant motivators.

Philanthropic Opportunities for Working Retirees

For people who’ve reached retirement age, working or returning to work provides many opportunities that tie into philanthropy. For example:

  • Contributing to IRAs: Many people are unaware that they can still contribute to their IRAs. If there’s an employer-sponsored 401(k) plan, that’s even better.
  • Funding Donor-Advised Funds: Extra income can be used to fund a donor-advised fund at the Community Foundation. This makes you eligible for an income tax deduction and removes assets from your taxable estate.
  • Updating Estate Plans: Increased free time, possibly because children have grown, allows for more involvement with causes you care about. This is a good time to update your estate plan to leave additional bequests to your donor-advised fund at the Community Foundation.
  • Qualified Charitable Distribution (QCD): If you are 70 1/2 or older, you can direct up to $100,000 annually from your IRA to a qualified charity. This cap is indexed for inflation, allowing for more in future years. QCDs can offset Required Minimum Distributions (RMDs) if you are at the age where distributions are required.

Volunteering and Civic Engagement

For those who have retired for good, many organizations you care about could use your help not only financially as a donor but also as a volunteer, board member, or community advocate.

Contact Us

Please reach out to our team at the Community Foundation. We would love to work with you on your charitable giving plans for retirement, un-retirement, or re-retirement. Your professional skills and civic commitment are invaluable in improving the quality of life in our community.