Giving From Your IRA

Qualified Charitable Distributions (QCDs) reduce your taxable income and boost your philanthropy.

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Blueberry Lake, Warren

Owners of traditional IRAs who are over 70½ may be considering a charitable gift before the end of the year. The IRS refers to an IRA charitable rollover gift as a qualified charitable distribution. If you are age 73 or older, a QCD may fulfill part or all of your required minimum distribution (RMD) for this year.

Why consider a QCD?

Funds eligible to receive QCD gifts

How does it work?

Qualified Charitable Distributions (QCD) reduce your taxable income and boost your philanthropy. A QCD allows you to:

Meet your required minimum distributions (RMDs) after age 73

Make a meaningful gift to support your community and the causes you care about.

Reduce your taxable income, even if you don’t itemize deductions, by excluding the gift amount from your income for federal tax purposes

Use your RMD for charitable giving instead of personal income

Potentially reduce future estate taxes by removing assets from your IRA

QCDs can be gifted to the Vermont Community Foundation to benefit a wide variety of nonprofits and causes.

Support Vermont’s greatest needs through funds such as the Philanthropic Leadership Fund that give VCF the flexibility to respond to urgent challenges, promising opportunities, and more

Strengthen a place you love through funds focused on a community or region such as the Northeast Kingdom Fund, Opportunity Fund for Southshire Youth, or ask us about your region

Advanced what matters most to you through funds that support specific causes such as the Vermont Women’s Fund, Press Forward Vermont, or a designated fund for your favorite nonprofit

Please note: QCDs cannot be directed to a Donor Advised Fund (DAF) or private foundation and be eligible for exclusion from your taxable income

Direct a transfer from your IRA to the Vermont Community Foundation or other eligible charity

Exclude the gift amount from your income for federal tax purposes

Count the gift toward your required minimum distribution for the year

Make an immediate positive impact in your community

How to Make a QCD Gift

Three Steps. One Meaningful Decision.

1

Tell us what matters to you

Start with the impact you want to make, whether that means responding to Vermont’s needs, investing in a place or cause, or providing lasting support to organizations you value. We will help you identify a Vermont Community Foundation fund that reflects your goals and is eligible to receive your IRA gift.

2

Ask your IRA administrator to send the gift directly to the Community Foundation

Ask them to include your name and address, along with the name or purpose of the fund your gift should support. Provide our legal name and tax ID:

Vermont Community Foundation
3 Court Street, Middlebury, VT 05753
EIN: 22-2712160

3

Let us know that your gift is coming

IRA distributions do not always arrive with enough information to identify the donor or intended purpose. Contact us at philanthropy@vermontcf.org when you submit your request. We will watch for the gift, direct it according to your wishes, and provide an acknowledgment for your records.

What can a Qualified Charitable Distribution make possible?

See how Leonard Ahlfeld used his retirement savings to make a lasting difference in his Vermont community

Leonard's Story

Leonard sitting in a chair with his dog, Willy

Frequently Asked Questions

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Spruce Peak Arts Presents Music in the Meadow at the Trapp Family Lodge with the Vermont Symphony Orchestra, photo credit: Sarah Peet

Who does this apply to?

You must be at least age 70½ when the distribution is made. Owners of traditional IRAs who are over 70½ may be considering a charitable gift before the end of this year. The IRS refers to an IRA charitable rollover gift as a qualified charitable distribution (QCD). If you are age 73 or older, a QCD may fulfill part or all your required minimum distribution (RMD) for this year.

How much can I give through a QCD?

Does it count toward my RMD?

Can I give to a Donor Advised Fund?

Tax-free QCDs cannot be contributed to donor advised funds (DAFs). If you make a charitable gift from an IRA to a DAF, it will be taxed as income. The Vermont Community Foundation can help you identify other eligible funds that support the organizations, regions, or issues you care about.

When should I give?

Begin the process before Year-End. IRA administrators may need time to process your request. Starting early gives you time to confirm that the distribution has been completed and directed as intended.

Start your charitable giving journey today. Get in touch with a philanthropic advisor.

Speak with an Advisor