Qualified Charitable Distributions

A Creative Way to More Gifts

The Great Wealth Transfer is now taking place. Remind your donors about the tax benefits of a gift from an IRA.

We have the language your donors hear.

Imagine the power of a series of such mailings, each with a different donor. 

Donors, like everyone else, want to enjoy life. Remind them that Legacy Giving will add to this joy.

Are you looking for an easier way to bring in more gifts? Do you wish there were a simple, cost-effective way to reach your prospects? Then look no further! We have a powerful solution that will inspire your donors to make generous, meaningful gifts to your organization.

Our tool of choice? A line of clever, eye-catching QCD postcards and brochures that are easy to implement and have a high return on investment.

Aimed at donors concerned about required minimum distributions (RMDs), our QCD marketing pieces explain the benefits of donating from their RMD to a qualified charity:  

  • Substantial tax savings
  • Legacy building
  • Avoidance of penalties
  • Positive impact

But here’s the kicker: Now is the perfect time of year to mail them out because of these important RMD deadlines:

  • December 31: Deadline for the first RMD in the year your prospective donor turns 72.
  • December 31: Deadline for each following RMD.
  • Prospective donors have to take an RMD from workplace plans even if they are still working. (There are some exceptions.)

When your branded, eye-catching postcard arrives in the mail, they’ll immediately be reminded of the good work you do. And then they’ll discover a simple, mutually beneficial way to help your organization.  

Contact one of our planned giving experts today to get started building your endowment.


Many retirees worry that once they turn 72, they’ll incur penalties or get stuck with a hefty tax bill because of RMDs. By helping them ease their minds and build their legacy, you’ll also be helping your nonprofit prepare for the future. Don’t wait — it’s the perfect time of year to reach this audience.

Use Your Traditional IRA to Make Your Charitable Gifts

The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

To qualify

  • You must be age 70½ or older at the time of gift.
  • Transfers must be made directly from a traditional IRA account by your IRA administrator to {nonprofit}. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
  • Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.

Benefits — qualified charitable distributions

  • Can total up to $100,000.
  • Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).
  • Count towards your required minimum distribution for the year from your IRA.


Suppose Jane wants to make a contribution to {nonprofit}. She has $500,000 in her IRA and she wants the contribution to be $20,000. She can authorize the administrator of her IRA to transfer $20,000 to {nonprofit} and $5,000 to herself. The $20,000 distributed to {nonprofit} will not be subject to federal tax and will be counted toward her annual minimum required distribution.

As you plan your required minimum distributions for this year, if you do not need the money the government is requiring you to take, consider using it for a charitable gift using the IRA Charitable Rollover.

Questions and Answers

H.R. 2029, the Protecting Americans from Tax Hikes Act of 2015 permanently extended the IRA Charitable Rollover. Originally passed in 2006 as part of the Pension Protection Act, the IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes.

Who qualifies? Individuals who are age 70½ or older at the time of the contribution (you have to wait until 6 months after your 70th birthday to make the transfer).

How much can I transfer? $100,000 per year. The provision no longer has an expiration date.

From what accounts can I make transfers? Transfers must come from your IRAs directly to {nonprofit}. If you have retirement assets in a 401k, 403b etc., you must first roll those funds into an IRA, and then you can direct the IRA administrator to transfer the funds from the IRA directly to {nonprofit}.

To what charities can I make gifts? Tax exempt organizations that are classified as 501(c) (3) charities, including {nonprofit}, to which deductible contributions can be made.

Can I use the IRA Charitable Rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations? No, these are not eligible.

How will {nonprofit} count the gift? We will give you full credit for the entire gift amount.

What are the tax implications to me?

  • Federal — You do not recognize the transfer to {nonprofit} as income, provided it goes directly from the IRA administrator to us; therefore, you are not entitled to an income tax charitable deduction for your gift.
  • State — Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.

Does this transfer qualify as my required minimum distribution? Once you reach age 72, you are required to take required minimum distributions from your retirement plans each year, according to a federal formula. IRA Charitable Rollovers count towards your minimum required distribution from the IRA for the year.

Can my spouse also make an IRA Charitable Rollover, even if we are married and file jointly? Yes, every individual can use the IRA Charitable Rollover for up to $100,000 each year.

How do I know if an IRA Charitable Rollover is right for me? You are at least age 70½, and:

  • You do not need the additional income necessitated by your minimum required distribution, OR
  • Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts, OR
  • You do not itemize deductions, OR
  • You are subject to income phase-outs on your income tax deductions.

What is the procedure to execute an IRA Charitable Rollover? It is a simple process of alerting {nonprofit} and your administrator of your plan. We offer our sample letter (to administrator) that you can send to initiate the rollover. And ask you to contact us using this sample letter (to charity) so we can verify the check from your IRA administrator.


Important: Be sure to check with your financial advisor to determine whether this provision is right for you. This information is not meant as tax or legal advice.

Practical Creativity

There is a special formula to planned giving marketing that always works.

Are you using it?

Many in our industry try to create “breakthrough solutions” which are not economically feasible nor even possible.

They are always reinventing the wheel.

We come up with game-changing content weekly, and it is all based on variable themes that work. Our content library is so vast that our solutions always fit or are easily adapted to what an organization is specifically looking for.

With over 150 fully-developed proven concepts, why waste time and effort creating something that already exists?

This delivers an easier and more effective customized solution versus an off-the-shelf product that sounds canned. No need for endless meetings with your staff, over-working content writers, spending hours trying to brainstorm. We’ve done the work for you and created the language your donors hear

No stress. No mess. No fuss. Less investment of your time. 

We’re dedicated to your success.

All materials are copyrighted. Please respect our work and do not “borrow.” Copying is theft.


Some charities do not qualify for QCDs:

  • Private foundations
  • Supporting organizations: i.e., charities carrying out exempt purposes by supporting other exempt organizations, usually other public charities
  • Donor-advised funds, which public charities manage on behalf of organizations, families, or individuals