How to Maximize Your Impact through Tax Planning and Charitable Giving
Planning your annual taxes and charitable giving can go hand-in-hand. If you’re age 70½ or older and have a traditional IRA, you may be required to take a Required Minimum Distribution (RMD) each year. These distributions are typically taxed as ordinary income—potentially increasing your tax bill.
However, by donating part or all of your RMD directly to the Food Bank of the Albemarle through a Qualified Charitable Distribution (QCD), you can make an impactful gift and potentially reduce your tax liability.
What Is a Qualified Charitable Distribution (QCD)?
A QCD allows individuals who meet the age requirement to make a direct transfer from their IRA to a qualified charity, such as the Food Bank of the Albemarle. The amount transferred:
• Counts toward your annual RMD
• Is excluded from taxable income
• May help reduce your adjusted gross income (AGI) and keep you in a lower tax bracket
Benefits of Donating Your RMD
• Support your community by helping provide food and resources to thousands of neighbors across northeastern North Carolina.
• Reduce taxes since the donated amount isn’t counted as taxable income.
• Fulfill your RMD requirement while making a lasting impact.
How to Make a QCD
1. Contact your IRA custodian and inform them that you’d like to make a Qualified Charitable Distribution to the Food Bank of the Albemarle.
2. The distribution must be made payable directly to the Food Bank (you cannot receive the funds first).
3. Transfers must be completed by December 31 to count for the current tax year.
4. You may donate up to $108,000 annually directly from your IRA to one or more qualified charities.
5. You cannot receive anything of value in return for your gift.
Key Notes
• Applies to Traditional IRAs.
• The QCD satisfies your RMD requirement.
• Always consult your tax advisor or financial planner to ensure eligibility and maximize the benefit of your charitable gift.
Contact Information
For more information, please contact:
Diana Flippo, Director of Development
📞 252-562-4110 | Food Bank of the Albemarle
