Qualified Charitable Distribution

Donate to The Parish School Using a Qualified Charitable Distribution (QCD)

Are you 72 years young and required to take a minimum distribution from your IRA? When planning your IRA withdrawal strategy, you may want to consider making charitable donations through a QCD.

A qualified charitable distribution (QCD) is a direct transfer of funds from your IRA custodian, payable to a qualified charity, like The Parish School (the school is a 501(c)3 organization). It allows individuals who are 70½ years old or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their required minimum distributions. As a result, donors may avoid being pushed into higher income tax brackets and prevent phaseouts of other tax deductions. QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA.  

QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as certain rules are met. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare. Also, QCDs don't require that you itemize, which due to the recent tax law changes, means you may decide to take advantage of the higher standard deduction, but still use a QCD for charitable giving. But please note, funds distributed directly to you, the IRA owner, and which you then give to charity do not qualify as a QCD.

Consult your tax advisor to determine if making a QCD from your IRA to The Parish School would be beneficial for you.

For more information, please contact advancement@parishschool.org.