IRA Giving | Qualified Charitable Distribution

Generational Generosity

Giving through an IRA “makes sense” to long-time donor

Person smiling and making heart shape with their fingers

“I don’t spend a lot of money on myself. I prefer to share!”

Margaret’s grandmother was widowed with four children yet she always set an extra place at the dinner table in case someone showed up who needed a meal. Margaret grew up in a low income household yet her mother continued to be generous to others. From them, she says she learned “generational generosity.”

Margaret recently started making contributions to The Food Group through her retirement fund. Once reaching age 70 ½, she is required to take annual distributions from her IRA. Margaret is a retired social worker who believes deeply in providing essentials like food and shelter. “It’s in my blood and it’s reflected in the charities I support.”

“It makes sense to designate gifts ‘off the top’ from our IRA distribution to send to charity. We live comfortably off our retirement income.” She gives to local, national, and international causes. She has supported the work of The Food Group for more than 25 years and has been able to increase gift amounts by using her IRA distribution as a Qualified Charitable Distribution (QCD).

“It has allowed me to give more to benefit our community.” Margaret encourages others who qualify to take advantage of the QCD and its tax benefits. 

Contact your financial advisor or IRA administrator to grow your giving with QCD today.

IRA Giving in 1, 2, 3

What is a Qualified Charitable Distribution (QCD)?

A qualified charitable distribution (QCD) is a distribution of funds from your IRA directly to a qualified charitable organization, such as The Food Group. Because the gift goes directly to the charity without passing through your hands, the dollar amount of the gift may be excluded from your taxable income up to a maximum of $100,000 annually, with some exceptions.  Please consult your tax advisor for information regarding your specific exceptions.

Who can make a qualified charitable distribution?

QCDs can be made by IRA owners who are age 70 1/2 or older. QCDs made prior to the age you are required to take a minimum distribution from your retirement assets (pre-Required Minimum Distribution QCDs) will not reduce or otherwise impact future Required Minimum Distribution.  Your tax advisor can provide additional information on your situation.

Who can make a QCD?

QCDs can be made by IRA owners who are age 70 1/2 or older. QCDs made prior to the age you are required to take a minimum distribution from your retirement assets will not reduce or otherwise impact future Required Minimum Distribution. Your tax advisor can provide more information.

How do I make a QCD to The Food Group?

Your QCD must be made directly from your IRA custodian to The Food Group on your behalf. Each financial institution has its own process for initiating a qualified charitable distribution. Your plan administrator can provide you with information about the process.

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The Food Group

We’re a local nonprofit working at the intersection of equity and access to healthy, sustainable foods. From farming to distribution, we provide good food to those who need it most in 30 counties in Minnesota and Wisconsin.

The Food Group Office & Warehouse

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