IRA Qualified Charitable Distribution

A qualified charitable distribution (QCD) allows individuals who are 70½ years old or older to donate up to $108,000 to a qualifying charity directly from a traditional IRA. This is an attractive option for people who need to take a required minimum distribution (RMD) but don’t need the income or want a potential tax hit.

Here are some of the top reasons a QCD gift makes sense for you and Californians Against Waste Foundation.

  1. Tax Advantages: One of the primary reasons to make a QCD is the significant tax advantages it offers. By directly transferring funds from your IRA to a qualified charity, you can potentially satisfy your RMD without adding to your taxable income. This can be especially beneficial for retirees looking to minimize their tax liability while supporting CAW Foundation.

  2. Double Dip with the Standard Deduction: With the increase in the standard deduction in recent years, many individuals find it challenging to itemize deductions on their tax returns. However, a QCD allows you to still benefit from your charitable contributions. By making a direct transfer from your IRA to the CAW Foundation, you can enjoy the standard deduction while simultaneously supporting the programs and causes at CAWF that matter most to you.

  3. Preserve Social Security Benefits: If you’re receiving Social Security benefits, a higher taxable income can result in a portion of your benefits becoming taxable. Making a QCD helps keep your adjusted gross income lower, potentially reducing the taxable portion of your Social Security benefits. This strategy enables you to maintain more of your hard-earned retirement income while supporting charitable organizations.

  4. Efficient Estate Planning: QCDs can be a powerful tool for estate planning by helping you strategically reduce the size of your taxable estate. You can even add the CAW Foundation as a partial or full beneficiary of your IRA for an even greater effect. This can result in a more efficient transfer of wealth to your heirs while supporting the causes you care about. It’s a win-win that allows you to leave a lasting mark on the CAW Foundation

  5. Direct Your Giving: Beyond the financial benefits, making a QCD allows you to support CAWF in a way that is most personal to you. Whether you want to fund our work to reduce plastic pollution, methane, or just support our general operating expenses, a QCD empowers you to make a positive impact at CAWF while optimizing your financial strategy.

How to make an IRA Qualified Charitable Distribution gift.

  1. Contact your IRA plan administrator to make a gift from your IRA to the CAW Foundation.

    Californians Against Waste Foundation
    921 11th Street, Suite 502
    Sacramento, CA  95814
    EIN: 68-0032326

    A sample distribution request letter is here:

  2. Your IRA funds will be directly transferred to us to help continue our important work.

  3. Please note that IRA Qualified Charitable Distribution gifts do not qualify for a charitable deduction.

  4. Once you make your QCD gift, please let us know how you want your gift to be used.

Contact us

If you have any questions about an IRA Qualified Charitable Distribution gift, please reach out to Lanh Nguyen in our office.

Lanh Nguyen
Finance & Operations Manager
Californians Against Waste Foundation
email: nguyen@cawrecycles.org
916 443 5422