What Is a Qualified Charitable Distribution (QCD)?
A Qualified Charitable Distribution (QCD) is a direct transfer of money from an individual retirement account (IRA) to a qualified charitable organization. Instead of withdrawing the funds and donating them yourself, your IRA sends the gift straight to the charity on your behalf.
Because the money moves directly from your IRA to the charity, it never becomes personal income and doesn’t pass through your hands. This makes QCDs a uniquely efficient way to support causes you care about while simplifying the way charitable giving is handled through your retirement savings.
QCDs are often used by individuals who want:
- A streamlined way to make charitable gifts
- To give directly from retirement funds rather than cash or investments
- To support organizations they believe in without navigating complicated tax paperwork
- To make philanthropy part of their long-term financial plan
A QCD offers donors a clear, structured method to contribute to nonprofits while keeping the process simple, direct, and beneficial for both the donor and the receiving organization.
A Qualified Charitable Distribution (QCD) is one of the simplest, most tax-smart ways to support local solutions through Pinellas Community Foundation. If you’re taking Required Minimum Distributions (RMDs), it can count toward your RMD for the year.
What a QCD Does
Allows someone to send money directly from their IRA to a qualified charity. The amount given counts toward their Required Minimum Distribution (RMD) if they are 73+.
The donated amount is excluded from taxable income, which is often better than taking a charitable deduction.
Why It’s Valuable
- Using a QCD can help with the following:
- Lower taxable income
- Reduce Medicare premium surcharges (IRMAA)
- Help avoid higher tax brackets
- Give donors an easy, tax-efficient way to support nonprofits
Key Rules of QCDs
- Must be from a traditional IRA
- Person must be 70½ or older at the time of the distribution
- Max QCD is $100,000 per year per person
- Donation must go to a qualified 501(c)(3) charity (not donor-advised funds or private foundations)
Benefits to Donors
QCDs can lower your adjusted gross income (which may reduce the impact of AGI-based taxes and Medicare surcharges), provide tax efficiency even if you don’t itemize deductions, and direct meaningful support to the community you care about, right now. Many donors also appreciate how straightforward the process is.
How it Works with Pinellas Community Foundation (it’s simple)
- Choose your focus. Decide whether you want your gift to support a PCF fund or field of interest.
- Instruct your IRA custodian. Ask them to send a Qualified Charitable Distribution directly to Pinellas Community Foundation (checks/transfers must go straight from the IRA to PCF).
- Tell us it’s on the way. We’ll watch for the transfer, send your acknowledgment, and ensure your gift is directed as intended.
We’re here to make this easy, from answering quick questions to providing custodian-ready instructions. If you’d like to explore whether a QCD fits your goals, we can walk through it together in plain language.
A Qualified Charitable Distribution isn’t just a smart tax move, it can create the feeling that your money is doing something meaningful. Giving through a QCD strengthens your connection to your community, boosts feelings of fulfillment, and provides real peace of mind knowing you’re making a positive impact with resources you’ve worked hard for.
Note: QCD rules are specific, and personal tax situations vary. Please consult your tax
advisor or IRA custodian before initiating a gift.
