October 18, 2023
Qualified Charitable Distributions can make a big difference to Pasadena Senior Center!
A Qualified Charitable Distribution (QCD) enables individuals above the age of 70½ to donate up to $100,000 annually to charity from their IRA. Funds distributed as a QCD can be counted towards the required minimum distribution amount annually. This can be an advantageous strategy for individuals, as it directly reduces one’s ordinary income. With the higher standard deduction ($13,850 for single filers, $27,700 for married filing jointly in 2023) many people are no longer able to itemize charitable donations so the QCD provides an ongoing opportunity to receive a tax benefit for charitable giving. Married couples with their own IRAs may each make a QCD, allowing an annual transfer to charity of up to $200,000.
A Qualified Charitable Distribution (QCD) can offer a number of potential advantages for donors. QCDs are particularly suitable for those who:
- Need to take the required minimum distribution but do not require the funds, and would be faced with higher tax liabilities if they took the distribution as income.
- Are seeking to make larger charitable gifts than what would typically be possible with cash or other assets. The usual deduction limit for charitable gifts on tax returns is between 30-60% of the donor’s adjusted gross income; QCDs, however, are exempt from this AGI-based limitation, allowing for more generous donations.
- Are wanting to give directly to a charity, instead of towards a foundation or donor-advised fund.
- Have already identified which charities they intend to support right away with a sizable donation.
If this approach to strategic philanthropy interests you, or if you have questions about how best to make a gift through your IRA, please contact Christa Lorenz, senior director of development, at