IRA, Qualified Charitable Distribution (QCD)

Presentation

Summary of a QCD

A qualified charitable distribution (QCD) is a distribution from an IRA made directly to an eligible charity, bypassing the owner of the account. Owners of individual retirement accounts who are at least age 70 1/2 can contribute some or all of their IRAs to charity up to $100,000. The gift counts toward your Required Minimum Distribution (RMD).

Contact Information

Joe Langenderfer, CFRE
Executive Director
THE FOUNDATION of the ROMAN CATHOLIC DIOCESE OF RALEIGH, INC.
4700 Homewood Court,
Suite 320
Raleigh, North Carolina, 27609
Phone: 919/568-1065
Fax: 919/568-3241

Sample IRA Distribution Letter Instructions

First, contact your IRA administrator and see if they have a form that you can use to make an IRA direct charitable gift request. If that is not available, the following page offers a sample letter that can be used to request a direct distribution from an IRA (Individual Retirement Account) to your church or favorite charity. (This sort of gift is only available to individuals who are over age 70 1⁄2.)

You may print the following sample letter and simply fill in the blanks by hand or retype.

Fill in the blanks as follows:

  • Enter the name and address of your IRA custodian/administrator.
  • Enter the date.
  • Enter your IRA account number.
  • Enter the amount you wish to transfer to charity.
  • Enter the name and address of the church or charity. If you wish to benefit more than one charity, you will need to create a separate letter for each.
  • Briefly name the purpose of the gift whether it is for general charitable use or for a specific program or activity.
  • Include a phone number or email address where you can be contacted.
  • Sign the letter, print your name as the Plan Owner, and include your return mailing address.

You may want to keep a copy of the letter for your records.

This sort of gift may be new to some churches and charities. To ensure that you are provided an appropriate gift receipt letter, The Catholic Foundation is happy to issue the appropriate Gift Acknowledgement letter to you for your tax records.

Remember, this sort of gift is not income to you and, therefore, it is not tax deductible. The charitable distribution reduces your Adjusted Gross Income thus providing a tax benefit. The gift counts toward your Required Minimum Distribution (RMD). This is a great option for anyone who does not itemize charitable deductions and/or anyone who does not want to incur that additional RMD income.

 

RE: Request for charitable distribution from my Individual Retirement
Account for the 20__ Tax Year

Dear IRA Custodian:

Please accept this letter as my request to make a direct charitable distribution from my Individual Retirement Account, Account #____________________________ as authorized by Section 408(d)(8) of the Internal Revenue Code and the Protecting Americans from Tax Hikes Act of 2015.

Please issue a check in the amount of $_______________ payable to the following charitable organization at the following address:

The Foundation of the Roman Catholic Diocese of Raleigh, Inc.
4700 Homewood Court, Suite 320
Raleigh, NC 27609

In your transmittal to the above-named organization, please communicate my name and address as the donor of record in connection with this transfer. Also, please indicate that the purpose of the gift is:_____________________________________________________

______________________________________________________

(Examples: for general charitable purposes without restriction; the Building Fund; the Mission Project; etc.)

Please copy me on your transmittal.

It is my intention to have this transfer be a Qualified Charitable Distribution (QCD) that will qualify for exclusion from my taxable income during the 20__ tax year. This QCD will fulfill part or all of my Required Minimum Distribution for this year. Therefore, it is imperative this distribution be postmarked no later than December 31, 20__.

If you have any questions or need to contact me, I can be reached at    _ .

Thank you for your assistance and prompt attention to this matter.

Sincerely,