RMD Reminder

Many charitably-inclined retirees are still giving from their checking accounts, even though a Qualified Charitable Distribution (QCD) offers a more tax-efficient route for eligible IRA owners. And while donor advised funds cannot receive QCDs, The Community Foundation offers several options to deploy charitable gifts. 

Retirees Over 70½ Can Send $111,000 a Year From an IRA to Charity Tax-Free. The Average One Donates From Checking Instead.  — 24/7 Wall St. 

While QCDs are not a tax deduction, they count towards satisfying your client’s Required Minimum Distribution, thereby reducing what would otherwise be taxable income, regardless of whether your client itemizes. This article is a useful reminder that advisors can add value simply by asking how a client is making charitable gifts. Sometimes changing the asset or account used to make the same gift can produce a very different tax result.  

The Community Foundation can help you explore eligible ways your clients can make QCD gifts that suit their charitable interests, such as to a charitable fund that is directed for broad charitable purposes, an area of interest, or an organization. With our knowledge of the nonprofit sector, we can help your clients make thoughtful decisions about what their generosity will accomplish. 

QCD gifts to funds at The Community Foundation have grown from $29.5K in 2017 to over $563K in 2025 and are truly making an impact in our community.   

The Community Foundation team is here as a sounding board whenever those conversations arise. Please reach out anytime!