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QUALIFIED CHARITABLE DISTRIBUTIONS

Qualified Charitable Distributions (QCD) can be a tax-smart way to make your charitable gifts while helping the leaders and the families we serve thrive! If you are 70 ½ or older, consider using a QCD to support the areas that are dear to you at CrossPurpose.

A QCD is a distribution from an IRA made directly to an eligible charity, bypassing the owner of the account. They are also called IRA charitable distributions.

As of 2024, the maximum amount that can be given annually from an Individual Retirement Account (IRA) to a qualified charity through a Qualified Charitable Distribution (QCD) is $105,000. This is an increase from the previous limit of $100,000. The amount is indexed for inflation.

QCDs can also count toward the required minimum distribution (RMD) for IRA owners who are at least 73 years old. This can help donors avoid higher income tax brackets and other tax deduction phaseouts. QCDs cannot be made to donor advised funds or in exchange for benefits.

If you are 70 ½ or older and forced to take a required minimum distribution from your IRA plan, and you don’t really need it, a QCD can deliver tax benefits that ‘regular’ charitable donations might not.

As always, we encourage you to meet with your financial advisor to determine if such strategies are right for you.

Why Consider This Gift?

  • Your gift will be put to use today, allowing you to see the difference your donation is making.
  • Beginning in the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
  • Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

For more information please contact Nancy Slyter, Senior Philanthropy Advisor: nslyter@crosspurpose.org, 303-587-6270