The Genealogical Society of East Alabama, Inc. is a 501(c)(3) nonprofit, charitable organization
registered in the state of Alabama. Federal Tax ID# 63-0808922. The information provided below is
general in nature and should not be relied on as tax, legal, or financial planning advice.
For specific advice, please consult your professional advisors.
What is a Qualified Charitable Distribution?
A qualified charitable distribution (QCD) allows individuals who are 70½ years old or older to donate
up to $100,000 total to a qualified charity when paid directly from a taxable IRA. Amounts distributed as a QCD
can be counted toward satisfying your RMD for the year, up to the $100,000 limit. Further, the QCD is
excluded
from your taxable income, unlike a normal RMD that
is counted as taxable income, even if you
donate it to charity later.
Implications of State and Local Income Taxes
The most significant benefit of a qualified charitable distribution is realized at the federal level where QCDs
are not counted toward AGI or taxable income. But each state operates independently and taxes income differently.
While Not all states conform to federal law with respect to QCDs, state tax savings can be beneficial.
Regardless of where you live, recognize that state tax rules vary widely.
Donors using QCDs should consult a tax advisor to fully understand the impact on their state tax liabilities.
Why Qualified Charitable Distribution might be right for you
With many older Americans having to take taxable distributions from their IRAs, some are using those distributions to
support the charities they believe in..
A QCD can provide several potential benefits. It may be a suitable giving strategy for donors who:
-
Are required to take a minimum distribution from an IRA, but don't need the funds and would face increased tax liabilities if they took the distribution as income.
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Would like to reduce the balance in an IRA to lower future required minimum distributions.
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Would like to make a larger charitable gift than they could if they simply donated cash or other assets. The value of charitable gifts that can be deducted from a tax return usually ranges from 20 to 60 percent of the donor's adjusted gross income. This AGI-based limit does not apply to QCDs, allowing donors to make larger gifts.
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Do not wish to make their contribution to a foundation or donor-advised fund.
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Have identified which charities they want to support immediately with a substantial gift.
Please consult your individual tax advisor to determine how a QCD would benefit you.
How Do I Make a Qualified Charitable Distribution to GSEA
A Qualified Charitable Distribution can be a powerful philanthropic tool, enabling you to see your charitable legacy come to life.
We would be happy to meet with you and your professional advisors to discuss your specific situation, and whether a QCD may be right for you.
Please email us at
gsofea@gmail.org
or by going to
msginv.php to message us.
For a QCD to count towards your current year's Required Minimum Distribution, the funds must come out of your IRA by your RMD deadline,
generally December 31.
You can have your QCD applied to support our general fund, or to a specific activity, such as cemetery preservation, genealogical
programs, or publications.
To make a QCD to GSEA, direct your IRA custodian to send a check made out to Genealogy Society of East Alabama, Inc., at;
GSEA
P.O. Box 2892
Opelika, AL, 36803-2892