IRA Charitable Rollover
An easy long-term gift strategy!
Under the Legacy IRA Act (a.k.a. the Secure Act 2.0) if you are 70 1/2 or older you can make charitable gifts directly from your IRA to a qualified non-profit 501(c)3. This Qualified Charitable Distribution (QCD), which is sometimes also referred to as a "charitable rollover," is limited to $100,000 per year for individuals and $200,000 per year for married couples. Beginning in 2023 donors can use a charitable rollover to fund a charitable gift annuity (CGA) with up to $50,000 once during their lifetime. Additionally, starting in 2024 the maximum amount will be adjusted for inflation.
Although you won’t qualify for a tax deduction with this gift, you won’t pay ordinary income tax on the distribution so it is a virtual tax "wash.” Charitable rollovers also reduce your Required Minimum Distribution, if you have one.
If you at least 70 ½ years old and you would like to make a gift from your IRA, simply download the sample form below, complete it and send it to your IRA administrator or, use your IRA administrator’s form directly from their website to request a charitable rollover.
Download an Example Request
Below are some of the benefits of making a QCD or charitable rollover:
- By transferring gifts from your IRA directly to Mass Audubon (Massachusetts Audubon Society, Inc. - Tax ID #04-2104702) you will not pay ordinary income tax on the distribution and is therefore:
- Beneficial for individuals who do not itemize on their income tax
- An effective way to lower your adjusted gross income for tax purposes
- Reduces your annual Required Minimum Distribution (if any)
- IRA gifts may be used to satisfy multi-year gift pledges
- Gifts can be unrestricted or directed toward a specified sanctuary or purpose
- With the Secure Act 2.0 donors may use a Charitable Rollover to establish a CGA for up to $50,000 one time during their lifetime
The gift must be transferred from your IRA account directly to the charitable organization. Donors with check-writing ability for their IRAs may use this feature to complete their gift. However, you can never touch the money yourself.
Questions? Contact our Director of Gift Planning by email or at (781) 728-5147.