Qualified Charitable Distribution (QCD)

A qualified charitable distribution (QCD) is a distribution of funds from an IRA of a retiree directly to a IRS-qualified charity such as WIN. Because the donation goes directly to the charity, it does not count as taxable income for the donor. It also is counted as part of the annual minimum required distribution (MRD).

What are the advantages of qualified charitable distributions?
• Individuals compelled by law to take required minimum distributions (RMD) from their retirement savings, but who do not need the entire RMD income for expenses, may prefer to direct a portion of the annual MRD to impactful charities like WIN.
• Donation does not count as part of taxable income, so donation is from “pre-tax dollars”, allowing a larger donation with the same financial impact to the donor!
• The annual maximum total QCD allowed per taxpayer is indexed to inflation ($108,000 in 2025).   

How does a qualified charitable distribution work?
• Ask the financial organization that manages your retirement funds (e.g., TIAA, Fidelity, Vanguard) if you have an appropriate IRA for making QCDs, or how to open and fund one from your retirement savings.
• Each financial organization has a unique procedure for authorizing QCDs, so ask the adviser at your financial organization to assist. Be prepared to provide the full name and mailing address of the charity, as well as any specific direction (be brief). Some financial organizations require the Tax ID of the charity, which is sometimes listed on the charity website.

Example: 
Western Institute of Nursing
3455 SW Veterans Hospital Road, SN-4S
Portland, OR 97239
Tax ID: 93-1213641
Endowment Fund $500; Annual Fund $1,000

• It is wise to advise the charity that you have authorized a QCD and reiterate specific directions.
• Consult with your tax advisor on how to assure the donation is properly reflected on your tax filing.