Invest in Leadership


Qualified Charitable Distribution (QCD) from IRA


IRA Qualified Charitable Distributions (QCDs), also known as IRA Charitable Rollovers, are gaining popularity among donors aged 70 ½ or older who wish to contribute to the vital endeavors of the American Red Cross. With this option, you can donate up to $100,000 each year in tax-free charitable distributions, effectively reducing your taxable income. Moreover, if you’re 72 or older, utilizing QCDs assists in fulfilling your minimum distribution requirement (RMD) obligations.

Here’s how QCDs typically work:

  1. Age Requirement: To make a QCD, you must be at least 70½ years old at the time of the distribution.
  2. Direct Transfer to Charity: The distribution must be made directly from your IRA to a qualified charitable organization. The charity must be eligible to receive tax-deductible contributions, excluding private foundations and donor-advised funds.
  3. Annual Limit: The maximum amount of QCD that can be excluded from taxable income is $100,000 per individual per year. If you file taxes jointly, each spouse can make their own QCD of up to $100,000.
  4. Tax Benefits: QCDs can satisfy all or part of your required minimum distribution (RMD) for the year, which means the amount distributed as a QCD doesn’t count as taxable income. This can result in tax savings, especially for individuals who do not itemize deductions.

QCDs can be a tax-efficient way for individuals who are philanthropically inclined to support charitable causes while minimizing their taxable income. However, it’s essential to understand and comply with the IRS rules governing QCDs to ensure that you receive the intended tax benefits. Consulting with a tax professional or financial advisor is recommended before making a Qualified Charitable Distribution.


To ensure your Qualified Charitable Distribution (QCD) benefits both you and the Pat Tillman Foundation, it’s crucial to initiate the distribution directly from your IRA custodian to the foundation on your behalf. Every financial institution has its unique process for facilitating QCDs, which can sometimes be challenging for account holders to navigate. Many retirement plan administrators mandate the use of their specific distribution forms and adherence to additional requirements. Therefore, it’s essential to follow your financial institution’s prescribed forms and procedures diligently. This ensures that you not only fulfill the donation process accurately but also secure any potential tax benefits linked with this generous gift.

Use this form form to discuss the QCD option with your retirement plan administrator.