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Qualified Charitable Distributions

A smart way to give and benefit

Understanding Qualified Charitable Distributions (QCDs)
If you are over 70.5 years old, you can distribute up to $100,000 each year from your IRA to your favorite 501(c)(3) organizations – like LEDA – without counting the distribution as income. For donors 72 years and older, you are required to take a minimum annual distribution from your IRA. In both of these circumstances, you can support promising young people with education and leadership development by making a donation to LEDA directly from your IRA without incurring any additional tax burden.

Why QCDs benefit donors

  1. Tax Advantages: If you are over 70.5, using your IRA to make gifts can help reduce your taxable income. This is especially beneficial for those aged 72 and above who are required to take Required Minimum Distributions annually. Instead of the distribution being added to your taxable income, directing it to a qualified charity like LEDA can lower your tax liability.
  2. Fulfillment of RMD Obligation: By making a charitable contribution from your IRA, you can satisfy your Required Minimum Distribution requirement while ensuring your money is put to good use.
  3. Legacy of Giving: Utilizing Qualified Charity Distributions for charitable giving allows you to create a lasting impact, supporting the growth and development of future leaders.

How to Make an IRA Charitable Rollover Gift to LEDA

  1. Contact Your IRA Administrator: Reach out to the financial institution managing your IRA and express your intent to make a charitable contribution directly from your IRA to LEDA.
  2. Specify the Amount: Determine the amount you wish to contribute, keeping in mind that it can satisfy part or all of your RMD for the year.
  3. Direct Transfer: Ensure the funds are transferred directly from your IRA to LEDA. This is crucial for the donation to be excluded from your taxable income.
  4. Obtain a Receipt: For your records and tax purposes, LEDA will generate a written receipt confirming your donation.

Your Impact
By choosing to make a Qualified Charitable Distribution to LEDA, you’re not just fulfilling a financial obligation. You’re investing in the future of talented, underresourced youth by providing them with unparalleled education and leadership opportunities. Your gift makes a direct impact, fostering a brighter future for these promising individuals and society at large.

For additional information, please contact LEDA’s development office at development@ledascholars.org.

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