IRA Qualified Charitable Distributions
The IRA Qualified Charitable Distribution provision allows individuals who have reached age 70 ½ to donate up to $100,000 per taxpayer per year to charitable organizations directly from their Individual Retirement Account (IRA) without treating the distribution as taxable income. These gifts from your IRA can be given to many funds at the Community Foundation of Central Georgia (except for Donor Advised Funds), and can be used to meet the donor’s required minimum distribution.
Note: The IRA owner (or the beneficiary of an inherited IRA) must actually be age 70 ½ or older on the date of qualified charitable distribution (not merely turning 70 ½ sometime that year).
Legislative Update 2023
At the end of 2022, Congress passed the ‘Consolidated Appropriations Act of 2023’ (often referred to as SECURE 2.0) which slightly altered the IRA rules, increasing the required age to take a minimum distribution from your IRA from age 72 to age 73 beginning on January 1, 2023. However, for donors who wish to make an IRA Qualified Charitable Distribution (QCD), the eligibility rules for making an IRA QCD have not changed, and the 70 ½ age limitation still applies. This allows taxpayers who are not yet required to take IRA distributions under the RMD rules to still take advantage of the QCD technique without the income tax hit on the distributed funds while also removing those funds from liability for future estate taxes.
During Your Life
During your life, gifts from your IRA can be given to many funds at the Community Foundation of Central Georgia, including endowment funds, scholarship funds, field of interest funds, designated funds, and unrestricted funds.
At this time, you cannot make an IRA qualified charitable distribution to a donor advised fund during life.
At Your Death
At your death, gifts from your IRA can be given to any fund at the Community Foundation, including donor advised funds. Because retirement assets are some of the highly taxed assets and are among the most costly assets to pass onto heirs, using your IRA to make charitable gifts to organizations such as funds at the Community Foundation of Central Georgia can be a great strategy.
How To Make A QCD
- To make an IRA Rollover Gift during life, contact your IRA plan administrator to transfer the desired amount to CFCG (EIN #58-2053465). Then, call Julia Wood at the Community Foundation of Central Georgia at (478) 750-9338 to indicate to which fund you would like your gift attributed.
- To make a charitable gift from your IRA at death, simply update your IRA beneficiary form to name a fund at CFCG as a charitable beneficiary.
We know this can seem complicated. If you have any questions about charitable gifts from your IRA during your life or at your death, please consult your tax advisor and contact us at 478-750-9338.