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 or create a charitable fund.
Leslie Mulford used her IRA Qualified Charitable Distribution to create a field of interest fund at the CFMC. Read her story of giving.
Giving through my IRA allowed me to support the causes I care about.” Leslie Mulford
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.
Create a Charitable Gift Annuity with an IRA QCD
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 $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.