Donate with an IRA Charitable Rollover or an IRA Qualified Charitable Distribution (QCD)

You may be looking for a way to make a big difference to help further our mission. Your IRA rollover gift will make a significant difference in helping us further our mission.

If you are 70½ or older you may also be interested in a way to lower the income and taxes from your IRA withdrawals. It helps you achieve your personal and philanthropic goals and build a legacy for the future.

Terminology 101

  • A Required Minimum Distribution (RMD) is the amount the government requires taxpayers aged 70½ and over to take from your IRAs each year based upon your age, or you will face stiff penalties if you fail to withdraw your RMD. You must pay income tax on the portion you withdraw. However, Congress passed a law that allows IRA owners to roll over part or all their RMD up to $100,000 to a qualified charity each year as not taxable income for donor.
  • A Qualified Charitable Distribution (QCD) is the act of directing all or part of your annual required minimum IRA distribution (up to $100,000 per person) to a charity rather than taking it yourself. When you transfer the distribution from your IRA directly to a charity you pay no taxes on the transfer. If your spouse has a separate IRA, they can use it as well. If you are married, this means you and your spouse can each give up to $100,000 per year as long as you each own an IRA. If you file taxes jointly, a double gift can go a long way toward reducing your taxes.
  • Making an IRA Charitable Rollover Gift is the common term for using the Qualified Charitable Distribution (QCD) to satisfy your Required Minimum Distribution (RMD).

Benefits

  • Avoid taxes on transfers of up to $100,000 from your IRA to our organization
  • May 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 deduction limits on charitable gifts
  • You can make recurring donations from your IRA
  • Help further the work and mission of our organization 

How an IRA Charitable Rollover Gift Works

  1. Contact your IRA plan administrator to make a gift from your IRA to us.
  2. With the popularity of the IRA rollover, most administrators provide forms and a procedure to help you make a rollover gift.
  3. You will need to provide our organization’s full name, tax ID, and contact information.
  4. Your IRA funds must be directly transferred to our organization to reduce your taxable income.
  5. You can direct a transfer of up to $100,000 to be made this year from your IRA to a qualified charity.
  6. Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.
  7. Please contact us if you wish for your gift to be used for a specific purpose and how you would like it to be acknowledged.

 What If You Have a 401(k) or Other Retirement Account?

The IRA rollover applies only to IRAs. If you have a 401(k) or other retirement account that requires minimum distributions, you cannot make an IRA rollover gift. However, if the idea of using the IRA rollover appeals to you, it is often possible to roll over funds from your other accounts into your IRA and then make a rollover gift. Talk with your advisor about whether this option makes sense for you.

Contact Us

If you have any questions about an IRA charitable rollover gift, please contact us and your IRA administrator to learn more and get started with your gift. Our staff will be happy to work with you to ensure that your gift achieves your goals.