A Qualified Charitable Distribution (QCD) is a tax-free donation of funds from a tax-deferred IRA to a qualified public charity.
Why should I make a Qualified Charitable Distribution?
A QCD is one of the best ways to donate to charity if you must take required minimum distributions (RMDs) from your IRA. You can donate more effectively than you can with traditional tax-deductible giving.
Compared to a taxable IRA distribution:
- A QCD will lower your gross income and taxable income.
- A QCD might lower your income tax rate, the taxable amount of your Social Security benefits, and your Medicare premiums.
Compared to a tax-deductible charitable contribution:
- A QCD generally provides greater tax savings. A tax-deductible contribution does not provide any federal tax savings if you use the standard income tax deduction.
- The yearly QCD limit is not affected by your adjusted gross income.
How do I donate a QCD to Mount Olive?
Instruct your IRA custodian to make a distribution payable to:
Mount Olive Evangelical Lutheran Church
2830 18th Avenue NW
Rochester, MN 55901
Your IRA custodian might have specific forms and instructions. Most custodians will send a QCD directly to Mount Olive, but some custodians will send it to you for forwarding to Mount Olive.
Please contact our finance office, finance@molive.org, and tell us for what purpose(s) you are designating your donation.
What are the requirements for making a Qualified Charitable Distribution?
- You must be at least 70½ years of age.
- The IRA must be a traditional IRA, an inherited IRA, an inactive SEP IRA, or an inactive SIMPLE IRA.
- A QCD must be made payable directly to a qualified 501(c)(3) public charity.
- In 2024, you may donate up to $105,000. Your spouse may also donate up to $105,000 if they have their own IRA and are at least age 70½. This limit is adjusted each year for inflation.
- A QCD must be an outright gift with no benefits coming back to the donor.
- A QCD can be used to fulfill a pledge.
- A QCD cannot be donated to a private family foundation or a donor advised fund.
There are some additional provisions. For more information, see How qualified charitable distributions (QCDs) work: Rules, pros & cons.