Making your gift through an IRA Qualified Charitable Distribution (QCD)
- You must be 70 1/2 years or older.
- Only traditional IRAs are eligible for gifting.
- Recipients need to be a qualified public charity, which Immanuel is.
- Any individual may directly transfer up to $100,000 annually to any qualified public charity.
- Married couples who each have an IRA can give up to $100,000 from each for a total of up to $200,000.
- The check must be made payable directly to Immanuel Lutheran Church, not the IRA owner.
- An IRA QCD needs to be an outright gift with no benefits coming back to the donor.
- An IRA QCD can be used to fulfill a pledge, such as a pledge to the Rejoice! Capital Campaign.
- An IRA QCD cannot be transferred to a private family foundation or a donor advised fund, or used to establish a life income gift.
How do I proceed?
- Check with your tax advisor to see if a gift from your IRA is appropriate for your situation.
- Contact your IRA custodian to obtain any forms they may require and follow their instructions. If your IRA custodian does not have a specific form, please use the sample letter found at this link:
- Let the Immanuel know you are intending to make a rollover distribution from your IRA, using the sample letter found at this link:
- Although most IRA custodians transfer IRA rollover funds directly to public charities, some IRA custodians issue a check payable to the charity but send the check to the IRA owner for forwarding to the charity. This transaction still qualifies under the law as a QCD if the check is issued payable to the charity and you deliver the check prior to December 31st.
- Even though an IRA rollover is not included in taxable income and consequently there is no income tax deduction, an IRA rollover donor must still comply with substantiation requirements under the federal tax code. Immanuel will assist with this by providing an acknowledgment letter specific to the IRA QCD.