IRA Qualified Charitable Distribution – A Great Way to Give

IRA Qualified Charitable Distribution – A Great Way to Give

Contributing from your IRA to a fund at the Community Foundation for Monterey County (IRA Qualified Charitable Distribution (QCD) is an easy way to reduce your tax burden and make a significant gift to support causes you care about.

In retirement the IRS requires you to withdraw a certain amount (a required minimum distribution or RMD from your IRA each year, whether you need the funds or not, and you pay income tax on every distribution you take. You can utilize part of your RMD to direct a gift to benefit the causes of your choice.

How it Works

If you are 70 1/2 or older, you can make a gift from your IRA account to the CFMC to benefit your favorite nonprofit(s). Gifts made from your IRA (up to $105,000 per year in 2024*) are not reportable as taxable income and qualify toward your RMD which can lower your income and taxes. If you are married, your spouse can also make a gift of up to $105,000* from his or her IRA, for a total of $210,000.

  • Donate to several nonprofits with a single gift
    The CFMC can pass through your IRA QCD to the nonprofits you designate.
  • Support or create a charitable fund
    You can request an IRA QCD to almost any type of fund*, including the Fund for Monterey County, field of interest, designated, agency, and scholarship funds.
  • Leverage your gift through Monterey County Gives!
    You can also direct your gift to support participating nonprofits in the Monterey County Gives! year-end campaign from mid-November through December 31 and receive a partial match.

Benefits

With an IRA Charitable Rollover you reduce your taxes, support or establish a fund to benefit one or more organizations you care about, and feel good knowing that you were able to make a major gift from your IRA.

IRA QCD Gift Annuity – New

Cecilia RomeroUnder a new law effective in 2023, some donors can make an IRA QCD in exchange for a charitable gift annuity and receive fixed income for life. You can exercise this option only once during your lifetime and there is an aggregate limit of $53,000 in 2024 (amount adjusted annually for inflation). Learn more.

Please contact us at (831) 375-9712 to explore how the CFMC can assist you with charitable giving options.

 

*Beginning in 2024, the tax free amount cap per year is indexed for inflation. Note: Tax-free IRA contributions can be made to Field of Interest, Unrestricted, Designated, special funds (including Monterey County Gives!)  or operating funds at the CFMC. Gifts to Donor Advised Funds or private foundations do not qualify for preferential tax treatment. You cannot receive any goods or services in order for an IRA rollover gift to qualify for tax-free treatment.