Qualified Charitable Distributions

QCDs are tax-effective gift options

If you’re 70 ½ 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.

A QCD contributes to your Required Minimum Distribution (RMD) without counting as annual income or paying income tax. For a QCD to count towards 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 QCD 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 QCD.

If you want to learn more about making a Qualified Charitable Distribution, you can contact your IRA asset manager. You may also email our Development Team or call our home office at 619-437-7142 for more information.

*As every financial situation is different, we recommend seeking advice from a financial advisor or professional about the implications of your gift.

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