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 $100,000 per year) 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 $100,000 from his or her IRA, for a total of $200,000.

  • 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.

NOTE ON 2023 TIMING:

To qualify for a 2023 Qualified Charitable Distribution, IRA contributions must clear your custodial account by December 29th, 2023. In other words, your check must reach the charity of your choice with enough time for them to process it, their bank to process it, and then for it to clear your IRA account. This may take a few weeks. Please confirm the timing with the manager of your custodial account.

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

Under 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 $50,000. Learn more.

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

*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.