If you’re 70½ or older, own a traditional IRA, and are looking for a smart, tax-savvy way to support the causes you care about, a Qualified Charitable Distribution (QCD) deserves a spot on your year-end, or anytime, planning list. At the Community Foundation for the Ohio Valley, we help donors turn everyday financial decisions into lasting community impact, and QCDs are one of the most powerful, underused tools available for intentional giving.
What Is a QCD?
A Qualified Charitable Distribution allows individuals age 70½ and older to transfer funds directly from their IRA to a qualified charity, without the distribution counting as taxable income. For donors who must take Required Minimum Distributions (RMDs), a QCD can satisfy that requirement while keeping the withdrawal out of adjusted gross income altogether.
That’s a meaningful distinction from simply withdrawing funds and writing a check. A QCD isn’t a deduction you have to itemize to claim; it’s an exclusion from income in the first place. That can help lower your Medicare premiums, reduce the taxability of your Social Security benefits, and keep you in a more favorable tax bracket, all while directing meaningful dollars toward the community you love.
Tax Advantages, Simplified
- Satisfies your RMD for the year, up to annual IRS limits
- Excludes the gift amount from taxable income – even if you don’t itemize
- May reduce Medicare premium surcharges tied to income thresholds
- Provides an immediate impact gift without dipping into other assets
Where a QCD Can… and Can’t Go
Here’s an important detail many donors don’t realize: QCDs cannot be directed to Donor Advised Funds. IRS rules specifically exclude DAFs as eligible recipients.
The good news is that the CFOV offers several fund types that welcome QCD gifts and let you give with real intention:
- Community Impact (Unrestricted) Fund – Give us the flexibility to respond to our region’s most pressing needs, today and in the future.
- Donor Designated Funds – Direct your support to a specific nonprofit or cause you’ve already identified as meaningful.
- Field of Interest Funds – Support a cause area you’re passionate about — education, health, the arts, and more, while trusting local experts to identify the greatest needs.
- Agency Funds – Help build long-term financial sustainability for a nonprofit organization close to your heart.
Each of these options allows your QCD to do real, immediate good in the Ohio Valley while also building toward something bigger: charitable giving in perpetuity.
Giving That Outlives You: Legacy and Perpetuity
A QCD is a wonderful way to give during your lifetime, but it’s also a natural entry point into a broader conversation about legacy. Funds held at the CFOV are structured to exist in perpetuity, meaning the causes you care about today can continue receiving support for generations to come.
Pairing your annual QCD gifts with a planned gift such as a bequest in your will, a beneficiary designation, or a charitable trust allows you to build a legacy that reflects your values long after your lifetime. It’s the difference between giving once and giving always.
It’s National Make-A-Will Month: The Perfect Time to Plan
August is National Make-A-Will Month, making this an ideal moment to review or create your estate plan. Whether you already have a will or you’ve been putting it off, now is the time to:
- Confirm your beneficiary designations are up to date
- Consider including a charitable bequest to a cause you love
- Talk with your advisor about how planned gifts fit into your broader financial picture
- Reach out to our team to explore legacy fund options
A will isn’t just about distributing assets; it’s about telling the story of what mattered to you. A planned gift through the CFOV ensures your generosity becomes part of that story, permanently.
How Can We Help?
As the philanthropic expert for our region, the Community Foundation for the Ohio Valley is here to help you navigate QCDs, planned giving, and legacy planning with confidence. Whether you’re ready to make a QCD gift this year or simply want to explore your options, our team can work alongside your financial and legal advisors to find the right fit for your goals.
Now is the time. Talk to us about how a QCD, paired with a thoughtful legacy plan, can create impact today and for generations to come.
This blog is for informational purposes only and does not constitute tax or legal advice. Please consult your financial advisor or attorney regarding your specific situation.
