IRA QUALIFIED CHARITABLE DISTRIBUTION (QCD)

You may be looking for a way to make a big difference to help further our mission. If you are 70 ½ or older you may also be interested in a way to lower the income tax cost from your IRA withdrawals. An IRA Qualified Charitable Distribution (QCD) is a way you can help continue our work and benefit this year.

As a result of the new tax law, more taxpayers will be taking a standard deduction and their charitable gifts will no longer be deductible. But the QCD gives a taxpayer a double advantage. You can take the higher standard deduction and then effectively add a charitable deduction on top of that, by taking your IRA distribution as a QCD, which is excluded from income.

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BENEFITS OF A
QUALIFIED CHARITABLE DISTRIBUTION (QCD)

  • Satisfies your "required minimum distribution" (RMD) for the year.

  • Reduce your taxable income, even if you do not itemize deductions.

  • Effectively turn your RMD into a charitable deduction.

  • Help further the work and mission of our foundation.

  • Avoid taxes by transferring up to $100,000 directly from your IRA to our Foundation.

HOW A QUALIFIED
CHARITABLE DISTRIBUTION (QCD) WORKS

  • Contact your IRA plan administrator to discuss and request a QCD.

  • Your IRA funds will be directly transferred to our foundation to help continue our important work.

  • QCD does not increase adjusted gross income as a taxable IRA distribution does.

  • Please contact us if you wish for your gift to be used for a specific purpose.

EXAMPLE: A Qualified Charitable Distribution can provide significant tax savings.  If a taxpayer in the new 24% tax bracket in 2018 and makes a $10,000 gift using a QCD. If the RMD happens also to be $10,000, then none of that RMD is included in income. If the taxpayer is taking the standard deduction ($24,000 for married filing jointly) where no charitable contributions are deductible, this $10,000 QCD provides an effective tax deduction and will reduce the 2018 tax bill by $2,400.