If you are required to take a minimum annual distribution from your IRA, a Qualified Charitable Distribution (QCD) offers a tax-efficient way to support the Anchorage Park Foundation and the parks, trails, and recreation opportunities that make Anchorage a great place to live.
Qualified Charitable Distributions, sometimes called IRA charitable rollovers, allow eligible individuals to make gifts directly from their traditional IRA to qualified charitable organizations without including the distribution in their adjusted gross income (AGI), subject to applicable IRS rules.
Advantages to You
- Support the parks and trails you love. Use assets from your IRA to help the Anchorage Park Foundation build healthy parks and healthy people.
- Potentially reduce your taxable income. Eligible distributions are generally excluded from your adjusted gross income.
- Give regardless of your deduction method. You may benefit from a QCD whether you itemize deductions or take the standard deduction.
- Meet your required minimum distribution. An eligible charitable distribution can count toward your required minimum distribution for the year.
To Qualify
- Eligible accounts: QCDs generally must come directly from an eligible traditional IRA or inherited IRA. Distributions from employer-sponsored retirement plans, such as 401(k) and 403(b) plans, generally do not qualify unless the assets are first moved into an eligible IRA.
- Annual limits: The IRS sets an annual limit on QCDs, which is adjusted for inflation. Check the current limit with your tax advisor. Spouses with eligible IRAs may each be able to make qualifying gifts.
- Eligible charities: The distribution must go directly from your IRA trustee to an eligible charitable organization, such as the Anchorage Park Foundation. Gifts to donor-advised funds and private foundations generally do not qualify.
- No goods or services in return: You cannot receive goods or services in exchange for a QCD.
- Gift acknowledgment: Ask your IRA administrator to include your name and contact information with the distribution so the Anchorage Park Foundation can properly identify and acknowledge your gift.
How to Make Your Gift
Contact your IRA administrator or financial advisor to request a Qualified Charitable Distribution payable directly to the Anchorage Park Foundation. Please ensure your name is included with the distribution so we can recognize your generosity.
A QCD can be a meaningful way to invest in Anchorage’s parks and trails while making use of your retirement assets.
The Anchorage Park Foundation does not provide legal or tax advice. Please consult your accountant, attorney, or other qualified professional to determine whether a Qualified Charitable Distribution is appropriate for your circumstances.
If you plan to make a QCD before the end of the calendar year, contact your IRA administrator well in advance, as processing times and year-end deadlines may vary.
