Giving Through Your IRA

How do Qualified Charitable Distributions (QCD) work?

Beginning at age 73, people who hold Individual Retirement Accounts (IRA) are required to take a minimum distribution (RMD) each year – even if you don’t need or want the funds. This RMD increases the IRA holder’s total taxable income, potentially pushing you into a higher tax bracket.

QCDs - also called IRA charitable distributions or IRA charitable rollovers - enable you to fulfill your RMD by making a direct transfer of up to $100,000 from your IRA payable to a qualified charity like Shelburne Farms. The QCD can be particularly beneficial if you do not itemize and take the standard deduction.

If you qualify, authorize the custodian of your IRA to make a QCD to Shelburne Farms (EIN # 03-0229347) located at 1611 Harbor Road in Shelburne, Vermont, 05482.

To qualify:

• You must be age 70½ or older at the time of the distribution.
• Transfers must be made by your plan administrator direct to charity by Dec 31 of the tax year.
• The total amount you may distribute in one year to all charities is $100,000 ($200,000 for a married couple). It will be indexed annually for inflation starting in 2024. 
• Funds withdrawn by you and then contributed do NOT qualify.  Gifts from 401k, 403b, SEP and other plans do not qualify.

Benefits:

• You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
• For donors 73 and older, QCDs can be counted toward satisfying your required minimum distributions for the year.
• Your gift will be put to immediate good work supporting Shelburne Farms.

Thank you for considering a QCD to Shelburne Farms. It’s a tax-wise way to support the Farm and our work educating for a sustainable future!