If you’re 70½ or older and have an Individual Retirement Account (IRA), you may have an opportunity to support your favorite charities while potentially reducing your taxable income.
A Qualified Charitable Distribution (QCD) allows eligible IRA owners to give directly from their retirement accounts to qualified charities.
It’s a giving option worth exploring, especially as you plan your year-end charitable contributions.
What Is a Qualified Charitable Distribution?
A Qualified Charitable Distribution is a gift made directly from an eligible IRA to a qualified charitable organization.
Rather than withdrawing money from your IRA and then making a gift, the funds go directly from your IRA custodian to the charity.
When completed correctly, the distribution can be excluded from your taxable income.
For 2026, eligible individuals age 70½ or older can make QCDs totaling up to $111,000. Married couples who each have eligible IRAs may each qualify for this limit.
You don’t have to give anywhere near that amount to benefit. Even a smaller gift may be a meaningful way to support a cause you care about.
How Can Giving From Your IRA Benefit You?
There are several reasons to consider a QCD.
1. Potentially reduce your taxable income.
Because a qualifying distribution is excluded from taxable income, it may offer a tax advantage compared with withdrawing the money yourself and then making a charitable gift.
2. Help satisfy your Required Minimum Distribution (RMD).
Once you reach the age when you’re required to take minimum distributions from your IRA, a QCD can count toward satisfying all or part of that requirement.
For many IRA owners, RMDs begin at age 73, although the applicable age depends on your birth year.
3. Benefit even if you don’t itemize.
Unlike many charitable tax deductions, a QCD doesn’t require you to itemize your deductions.
You cannot also claim a charitable income tax deduction for the same QCD, but excluding the distribution from your taxable income may still be beneficial.
Can You Give From Your IRA to the Community Foundation?
Yes! Certain charitable funds at Crawford Heritage Community Foundation may be eligible to receive Qualified Charitable Distributions.
For example, eligible funds may allow you to support:
- Local community needs: Invest in funds that help address changing needs throughout Crawford County.
- A favorite nonprofit: Support a particular charitable organization through an eligible designated fund.
- A cause you care about: Support areas such as education, the arts, or community well-being through an eligible field-of-interest fund.
There are important restrictions. QCDs cannot be made to donor-advised funds, and not every charitable fund qualifies.
Before arranging a transfer, contact the community foundation to confirm which funds can receive your gift.
How Do You Make a Qualified Charitable Distribution?
The process generally involves a few steps:
- Talk with your financial or tax advisor. Confirm that a QCD is appropriate for your situation.
- Choose an eligible charity or charitable fund. The community foundation can help you explore qualifying options.
- Contact your IRA custodian. Request that the distribution be made directly to the qualified charitable recipient.
- Allow enough processing time. Your QCD must be completed by December 31 to count for the 2026 tax year.
It’s important that the gift is handled correctly. Withdrawing the funds into your personal bank account and then making a gift generally won’t qualify as a QCD.
Make Your Retirement Savings Part of Your Giving Plan
Your IRA may be more than a source of retirement income. It could also be a way to support the organizations and causes that have made a difference in your life.
Whether you’re interested in helping a favorite nonprofit or investing in the future of Crawford County, Crawford Heritage Community Foundation can help you explore your options.
A conversation with your advisors and the community foundation can help you determine whether giving from your IRA fits your charitable goals.
Let’s Talk About Your Charitable Goals
You are always welcome to reach out if you would like to talk about how the Community Foundation can support your charitable goals. We have helped many generous people plan meaningful gifts that create lasting impact in our region. Integrity is central to our work. We take your trust seriously and treat every conversation and plan with the highest level of confidentiality.
If you would like to explore options, discuss your vision, or simply ask questions, please contact:
Christian Maher, Executive Director
executive@crawfordheritage.org
814-336-5206