What a Donor Needs to Know

With more than $18 Trillion in IRAs, there is an incredible opportunity to support the charities important to you while also reducing your tax liability.

A Qualified Charitable Distribution (QCD) currently allows those who are 70-1/2 years or older to donate up to $111,000 annually from their IRA.  Almost all types of IRAs qualify including Traditional, Rollover, Inherited, Inactive SIMPLE and SEP and under certain circumstances, Roth IRAs.    

How can you use a QCD to save on taxes?

By making a QCD directly to a charity you reduce your tax burden by excluding this income from your IRA payout. Especially if your IRA distribution would place you in a higher tax bracket.

If you are 73 or older and need to take a Required Minimum Distribution (RMD), your QCD counts toward your annual requirement.   

How to get started?

First, talk to your tax accountant or financial advisor. If they recommend a QCDs, then reach out to the Moline Regional Community Foundation to find out more about the local nonprofits making a difference in our community.  When you are ready to see your giving in action, Let’s Talk!