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Qualified Charitable Distributions

Qualified charitable distributions (QCD), also known as IRA charitable rollovers, are a great giving tool that nonprofits can use when working with their donors.

In the video above, we explore what IRA charitable rollovers are, and how donors can efficiently turn retirement income into a charitable donation.

What is a qualified charitable distribution (QCD)?

A QCD is an efficient way donors can turn retirement income into a charitable donation.

If a donor has a traditional IRA, they are mandated to take a Required Minimum Distribution (RMD) from that account when they turn 72. In many cases, donors may not want, or need, the income generated from their RMD, which can increase their annual income, and can have implications for their taxes or medical benefits.

To avoid those implications, donors can turn their RMD into a charitable gift – a Qualified Charitable Distribution – that can support their favorite nonprofits.

How a QCD Can Work for Your Donors

A QCD is a great option for committed donors who are retired, living on a fixed income and do not itemize their taxes. Even if a donor doesn’t have to take their RMD in 2020, QCDs are still an advantageous way to give as they could lower the amount of future RMDs.

QCDs also allow donors to support their favorite nonprofits during a time when they may be cash sensitive. For many older donors, QCDs are one of the most tax-efficient way to make charitable gifts.

For more information on Qualified Charitable Distributions, watch our video above.

Then, when you’re ready to add QCDs to your fundraising plan, schedule a strategy session with Mariah Brook or Beth McCray, our nonprofit gift planning specialists.

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