IRA Qualified Charitable Distribution (QCD) a way to partner with MFB
Midwest Food Bank values our donors, and we make effective use of every gift with integrity. We frequently receive questions about various ways to give to MFB, and one mechanism – IRA Qualified Charitable Distribution - is a way that benefits donors and MFB.
Making an IRA Qualified Charitable Distribution (QCD)
You can donate up to $100,000 in IRA assets directly to Midwest Food Bank without taking the distribution into taxable income. If you are married, you and your spouse may both transfer $100,000 to an eligible charity, bringing the total eligible tax-free distribution to $200,000. Remember, the new RMD age is 73; if giving a QCD at 70 ½, you will reduce future RMD by lowering your overall IRA balance.
How to donate an IRA gift?
- Contact your IRA provider.
- Must be 70 ½ and older.
- Applies to Traditional IRAs.
- The maximum tax-free amount cannot exceed $100,000 per tax year from an individual IRA.
- Distributions must be made payable to a qualifying charity (Midwest Food Bank qualifies); you cannot first receive the distribution and then contribute to the charity.
- The transfer must be made by December 31 to count against the year's RMD requirement.
- You may not receive anything of value from the charity in exchange for your contribution.
Notice: Donor Advised Funds are not permitted to accept a QCD. However, you can give an IRA gift to DAFs and receive a charitable tax deduction, lowering your adjusted gross income (AGI) if itemizing.
Please note, the guidelines we've outlined here are general, and we encourage donors to seek financial planners or tax professionals for personalized advice.
Other examples of non-cash gifts include:
- Appreciated Securities
- Donor Advised Funds
- Estate Gifts
- Charitable Annuities
If you would like more information on making a non-cash gift to Midwest Food Bank, contact our Chief Resource Officer, Jada Hoerr, through our contact page.
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