Giving With Greater Benefits: How QCDs Can Maximize Your Impact

Are you age 70 1⁄2 or older and looking for ways to make your charitable giving more tax-efficient? If so, you may want to explore a powerful strategy called a Qualified Charitable Distribution (QCD).

A QCD allows you to donate directly from your IRA to a qualified charity—up to $108,000 per year—without paying income tax on the distribution. This means more of your hard-earned savings can go directly toward the causes you care about.

Why Consider a QCD?

Meet your Required Minimum Distribution (RMD): A QCD can count toward your RMD while avoiding the tax bill that usually comes with it.
Reduce your tax burden: By excluding these funds from your taxable income, you may also lower the taxation of Social Security benefits, minimize exposure to Medicare’s surtaxes, and even reduce future Medicare Part B and D premiums.
Support your favorite charities: Your gift goes straight to qualified 501(c)(3) public charities, helping maximize your philanthropic impact.

Important Things to Know

QCDs are available to IRA owners and beneficiaries age 70½ or older.
The annual limit is $108,000 per person (in 2025), even if this exceeds your RMD.
Once an RMD is taken, it cannot be retroactively classified as a QCD.
Eligible charities must be qualified 501(c)(3) organizations (private foundations and donor-advised funds don’t qualify).
Donations must be sent directly from your IRA to the charity by December 31 for that tax year.

How It Helps Donors Like You

Unlike traditional charitable contributions, you don’t need to itemize deductions to benefit from a QCD. Even if you normally take the standard deduction, you still get the tax advantages of directing funds straight to charity.

For example, if Jane is 73 with a $20,000 RMD, she can give that amount directly to her favorite nonprofit as a QCD. The charity receives the full $20,000, and Jane avoids adding that income to her tax return. It’s a win-win.

Take the Next Step

Every situation is unique, so we encourage you to discuss this strategy with your financial advisor or tax professional. If you’ve been considering using your IRA distributions to give back, now is the perfect time to plan ahead before year-end.

Together, we can ensure your generosity makes the greatest possible impact—both for you and for the causes you support.