Qualified Charitable Distribution

Are you 70 1/2 or older and not using your Required Minimum Distribution (RMD) for your living expenses? You can reduce your taxable income by using your RMD to make an IRA Qualified Charitable Distribution (QCD) to an eligible charity like Glynn Visual Arts (GVA). It takes no time at all – just a simple email to your broker requesting the gift be made to Glynn Visual Arts. Click here for a sample letter. Tax ID #58-0948772

The Basics

Since an IRA is a tax-deferred retirement account, contributions within stated limits are tax deductible, and appreciation and earnings are not taxed until they are withdrawn. When IRA owners reach age 70 1/2, they are required to take yearly minimum distributions — even if they don’t want or need the income. IRA distributions are taxed as ordinary income, which could mean unfavorable tax implications depending on your financial circumstances. A one-step solution could be to request an IRA Qualified Charitable Distribution to a favorite charity because IRA Qualified Charitable Distributions are not taxable as income. The important part to remember is that the distribution must pass directly to the recipient charitable organization (see illustration below).

How an IRA Qualified Charitable Distribution Works

  • Direct a transfer from your IRA account to Glynn VIsual Arts, Tax ID #58-0948772

  • Exclude the gift amount from your income for federal tax purposes.

  • Count the gift toward your required minimum distribution for the year.

  • Make an immediate impact in your community.

Note: The Internal Revenue Service allows IRA owners age 70½ or over to transfer up to $100,000 to charity tax-free each year.

These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the end of the year. Moreover, for those who are at least 72, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.

Regardless of how you choose to give, we will honor your choices with gratitude and dedicated commitment as we continue to be your community arts center. Please join us in giving from the heART.