IRA Qualified Charitable Distribution (QCD)
If you are 70½ or older, you may be interested in a way to lower the income and taxes from your IRA withdrawals. The law uses the term “qualified charitable distribution” (or QCD) to describe an IRA charitable rollover. A QCD is money that individuals who are 70½ or older may direct from their traditional IRA to eligible charitable organizations. Individuals may exclude the amount distributed (up to $100k/year) directly to an eligible charity from their gross income. This opportunity is now a permanent provision in the tax law. An IRA QCD is a great way to steward your resources and help continue the Lord’s work at Shades. In light of ever-changing tax law (particularly related to the COVID-19 pandemic), please consult your financial and/or tax advisor(s) to see if this is an appropriate giving strategy for you.
Benefits of an IRA charitable rollover
- Avoid taxes on transfers of up to $100,000 from your traditional IRA to Shades
- Satisfy your required minimum distribution (RMD) for the year
- Reduce your taxable income, even if you do not itemize deductions
- Make a gift that is not subject to the 50% deduction limits on charitable gifts
- Help further the work and mission of Shades
How an IRA charitable rollover gift works
- Contact your IRA plan administrator to make a gift directly from your traditional IRA to Shades.
- Your IRA distribution will be directly transferred to Shades.
- Be sure to contact our Finance Department to ensure that the proceeds are designated as intended. Many times, IRA checks do not include information about you or your intentions for the gifts. As a result, your gift may not benefit the particular ministry area you had in mind if you do not contact us with your specific preference for your gift.
- Please note that under this provision of tax law, donors benefit by not having to recognize (as taxable income) the amount contributed directly from their IRA to a qualifying charity. However, because donors can exclude this contribution from their gross income, they cannot also include the amount in their itemized deductions for charitable contributions; to do so would result in a double tax benefit for donors and that is explicitly prohibited.