Charitable IRA

It’s easy to use your IRA for tax-saving charitable gifts. If you’re 70½ or older, you can transfer any amount up to $100,000 annually directly from an IRA to Lincoln Community Foundation without incurring Federal tax.

Such distributions apply toward required minimum distributions (RMD) and do not add to your income.  These Charitable IRA Rollovers, technically known as Qualified Charitable Distributions (QCDs), include the following possible tax benefits:

  • QCDs are not subject to the annual ceiling on charitable deductions or phase out of deductions for high earners.
  • QCDs are not included in your gross income calculation so you may save on Social Security income taxes, avoid the Medicare tax and enjoy other tax savings.
  • Even if you don’t itemize your deductions, a QCD provides an equivalent tax benefit.

We encourage you to consult with your personal tax advisor to see how you might benefit by making a charitable gift directly from your IRA.

Your QCD can create a new named fund or be added to an existing fund at Lincoln Community Foundation. However, IRA transfers to a Donor Advised Fund do not qualify as QCDs.