Qualified Charitable Distributions (QCD)

 

What is a Qualified Charitable Distribution?

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your Individual Retirement Account (IRA) custodian to a qualified charitable organization. 

What are the benefits of making a QCD?

One of the benefits of making a QCD is that the donation reduces your taxable income. Another benefit is that a QCD can qualify towards the amount of money you must withdraw from a tax-deferred retirement account once you turn 72, also known as your required minimum distribution (RMD).

What are the qualifications for a QCD?

  1. You must be 70 ½ or older when the distribution is transferred.

  2. You must have an eligible IRA. QCDs do not apply to 401(k) plans, 403(b) plans and group plans. 

  3. You may only transfer up to $100,000 to qualified charities each year. To count, your gifts must be made by December 31 of each year.

  4. If you are a joint tax filer, your spouse is also eligible to transfer up to $100,000 if they have an IRA and are 70 ½ or older.

How to Make a Gift:

You can give any amount (up to $100,000) from your IRA directly to L4GG without having to pay income taxes on the donation. To make a QCD gift to L4GG, please take the following steps: 

  1. Contact your IRA custodian, who will need to process the QCD and send it directly to L4GG.

  2. Send an email to Sterling Howard (Sterling@L4GG.org) to inform us of your gift (many retirement providers do not send donor information so we won’t be able to acknowledge your support).

  3. Please include our legal name and federal tax ID:

Legal Name: Lawyers for Good Government, Inc.

Legal Address: 6218 Georgia Ave NW, Unit 5001, Washington, DC 20011

Federal Tax ID: 81-4543775

 Additional Notes: 

  1. In order for your gift to be tax-free it must come directly from your IRA account. If you deposit the gift into your personal bank account before transferring the funds, the gift will not count as a QCD and will be treated as taxable income

  2. Please note that the Lawyers for Good Government Action Fund is a 501(c)(4) organization and is not qualified to receive QCDs. Please confirm with your IRA custodian that your transfer is being made to Lawyers for Good Government, Inc., which is our qualifying 501(c)(3) entity. 

Lawyers for Good Government does not provide tax advice. Please consult with your IRA custodian and personal legal or tax advisor before making a charitable contribution.