G4G welcomes donations made through IRAs. Please check with your account manager for specific instructions regarding your bank’s processes. Checks may be written to “Goods For Good” and mailed to our mailing address: Goods For Good, c/o Elizabeth Workman, 3740 McKinley St NW, Washington, DC 20015.
How QCDs Work: QCDs are also called IRA charitable distributions or IRA charitable rollovers. They enable individuals to fulfill their required minimum distribution by a direct transfer of up to $108,000 to charity. They can also be used support multiple charities, as long as the sum of the distributions is within the $108,000 limit. But because QCDs don’t increase taxable income, both higher tax rates and phaseouts can be avoided. For these reasons, a QCD can potentially enable a donor to give a bigger charitable gift than they could if they just donated cash or other assets. Learn more about charitable tax strategies.
How QCDs are made: Qualified charitable distributions are made directly to the eligible charity from a traditional IRA, inherited IRA, inactive Simplified Employee Pension (SEP) plan and inactive Savings Incentive Match Plan for Employees (SIMPLE) IRAs. (Inactive SEP and SIMPLE IRAs are accounts that no longer receive employer contributions.) The money is a direct transfer to the charity that never passes through the hands of the IRA holder. Instead, the IRA custodian can either send an electronic transfer of funds or a check directly to the charity.
For a QCD to count toward your minimum annual IRA distribution, it must be made by the same deadline as a normal distribution, which is usually Dec. 31 of the tax year in question.