UNDERSTANDING THE OPTION
A qualified charitable distribution, often called a QCD, is sent directly from an IRA custodian to an eligible charity. When the legal requirements are met, the transfer is generally excluded from the donor’s income rather than claimed as a charitable deduction.
This can be useful even for a donor who does not itemize deductions. A QCD may also count toward a required minimum distribution, but eligibility, annual limits, and timing rules must be confirmed for the year of the gift.
The transfer must move directly from the IRA to Shrine Mont. Starting early is important, particularly near year-end, because a request is not complete merely when the donor submits paperwork.
Why donors consider it
- Uses retirement assets for current charitable work
- May satisfy part or all of a required distribution
- May keep the transferred amount out of adjusted gross income when requirements are met
A thoughtful process
- Confirm eligibility with your tax advisor
- Ask Shrine Mont for current gift instructions
- Request a direct charitable transfer from the IRA custodian
- Ask the custodian to identify you with the payment
- Confirm completion and retain the acknowledgment
Points to discuss with your advisors
- Rules differ for various retirement accounts
- A donor-advised fund generally cannot receive a QCD
- Year-end transfers should be initiated well before December 31
- Current federal rules and limits change
This overview is not legal, tax, investment, or financial advice and does not confirm that Shrine Mont can accept a particular asset or arrangement. Please consult qualified advisors and contact Shrine Mont before taking action.