If you are 70½ years of age or older and have an IRA you may be able to direct tax‐free lifetime transfers to certain charitable organizations, called “qualified charitable distributions,” or QCDs. Possible recipients of your gift includes your church, the diocese, the Bishop’s Discretionary Fund, the Episcopal Conference Center (ECC), the Cathedral, the Center for Reconciliation, Hallworth House or Episcopal Charities.
Without the ability to do a QCD, if you wanted to use funds in your IRA to make a charitable gift, you would first have to withdraw the funds, include the withdrawn amount in income, and then contribute the funds to charity. The latter step might (or might not) be fully deductible. Under this tax‐favored provision, you can exclude from income up to $100,000 annually of an otherwise taxable IRA distribution that is transferred directly from your IRA (including an inherited IRA) to a “qualified” charity. If you are married, your spouse can also exclude the same amount. This can include a transfer that fulfills a pledge.
US Trust (which manages our Diocesan Investment Trust Fund) has provided a brief overview. You are encouraged to discuss this with your accountant, tax lawyer or financial advisor. If you want to set up a QCD for any diocesan entity or if you church needs help in setting up a way to receive this contribution, call Joan DeCelles, Finance Director, at 401-274-4500.