Giving From Your IRA: A Guide to Qualified Charitable Distributions

Generosity involves prayerfully considering how everything God has entrusted to us—including the resources accumulated over a lifetime—can continue serving our families, the Church, and our neighbors.

For those reaching the age of 70 1/2, that discernment may include decisions about Individual Retirement Arrangements, commonly known as IRAs. One option available to some IRA owners is a Qualified Charitable Distribution, or QCD.

A QCD allow an eligible person to make a charitable gift directly from an IRA. When the requirements are met, the distribution may be excluded from taxable income and may also count toward all or part of a Required Minimum Distribution (RMD). Understanding this option can help eligible you integrate generosity, retirement planning, and faithful stewardship.

What is a Qualified Charitable Distribution?

A Qualified Charitable Distribution is a donation made directly from an IRA account to a qualified charitable organization. Under current IRS guidance, the IRA owner must be at least 70½ years old when the distribution is made.

How does a QCD differ from a regular charitable donation?

Normally, when you donate to any charitable organization, you are using money that you have already paid taxes on. One benefit of an IRA is that you are saving the money before taxes are calculated with the caveat that you will need to pay tax on money that you withdraw at the time of withdrawal.

One benefit of QCDs is that the withdrawal for a charitable donation is not taxable. Since you are not paying taxes on your QCD donation, you cannot claim the donation if you itemize your taxes when filing your income tax forms.

This distinction may make a QCD worth discussing with a tax professional, particularly for someone who already intends to give and has sufficient retirement resources.

Why consider a QCD?

Christian generosity is a response to God’s generosity, not merely a financial transaction. At the same time, good stewardship includes learning how financial decisions work and using available resources wisely.

Your decision should begin with discernment. Generosity should not compromise a person’s ability to provide for housing, healthcare, family responsibilities, or other essential needs.

As Scripture reminds us, each person should give from a freely discerned decision of the heart—not reluctantly or under pressure.

This article is provided for educational purposes and is not intended as tax, legal, or investment advice. Please consult a qualified professional regarding your individual circumstances.