Qualified Charitable Distributions are tax-effective gift options
If you’re 70.5 years old or better and looking for a tax-effective way to support our climate solutions work, you may consider making a Qualified Charitable Distribution (QCD) as part of your IRA withdrawal strategy. A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified 501(c)(3) organization. This means that QCDs must be made to tax-deductible Citizens’ Climate Education and cannot be made to Citizens’ Climate Lobby.
If you are 72 years old or better, a QCD contributes to your Required Minimum Distribution (RMD) without counting as annual income or paying income tax. For a QCD to count toward your current year’s RMD, the funds must come out of your IRA by your RMD deadline, which is generally December 31.
In addition, a Qualified Charitable Distribution also excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, such as Medicare and Social Security.
Furthermore, QCDs don’t require that you itemize. With recent tax law changes, this means that you may decide to take advantage of the higher standard deduction, while still making a Qualified Charitable Distribution.
An easy way to get started: We have a free online resource to help you make a QCD quickly and securely. In 10 minutes or less, you can complete your most impactful gift to Citizens’ Climate Education yet, all while saving on your taxes.
You may also email our Development Team or call our home office at 619-437-7142 for more information.
Prefer to make a one-time or monthly donation?
*As every financial situation is different, we recommend seeking advice from a financial advisor or professional about the implications of your gift.