Qualified Charitable Distributions
Qualified Charitable Distributions (QCDs) from your IRA
Donating money from your IRA to Girls Inc of the Island City is an easy way to reduce your tax burden and make a significant gift to support our empowering and life-changing programs because QCDs do not need to be recognized as income.
If you are 70 ½ or older and have an IRA, you are eligible. Simply call your IRA custodian/Trustee/administrator and direct them to send a check to Girls Inc of the Island City from your IRA of up to $100,000 per year ($200,000 for married couples).
Qualified Charitable Distributions (QCDs) are nontaxable distributions from the Trustee of your IRA made directly to Girls Inc of the Island City. Normally, funds withdrawn from an IRA are added into your income which increases your tax burden and, in some cases can move you up to a higher tax bracket. But QCDs are an exception to this rule where your funds from your IRA go directly to your chosen charity without adding to your income, thus avoiding higher taxes.
QCDs satisfy Required Minimum Distributions (RMDs)
RMDs are the amounts that you must withdraw from your IRA once you reach a certain age either 70 ½ or 72. If you do not withdraw your RMD, you will face a penalty tax of 50% of the required withdrawal amount. QCDs can be used to meet this requirement and avoid penalties.
For more information, please contact Nelia Chen at 510.521.1743 ext. 210.