By Cynthia McChesney

Stewardship Matters

Fall is Annual Pledge Campaign season, and it’s also a perfect time to remind your parishioners age 70½ and older about a simple, meaningful way to support their church: the Qualified Charitable Distribution (QCD).

A QCD allows IRA owners age 70½ and older to make tax-free charitable gifts directly from a Traditional IRA to a qualified charity—like your church. For 2024, the maximum gift per person is $105,000, rising to $108,000 in 2025.

Important: The gift must go directly from the IRA trustee or custodian to the church. If the donor withdraws the money first, it becomes taxable income and does not qualify as a QCD.

Key Facts at a Glance

  • Who qualifies? Anyone 70½ or older with a Traditional IRA (or certain Inherited, SEP, or SIMPLE IRAs).
  • How much? Up to $105,000 per person in 2024, $108,000 in 2025. Married couples can each make a QCD from their own IRAs.
  • From which accounts? Traditional IRAs, inherited IRAs, and some inactive SEP or SIMPLE IRAs.
  • What doesn’t qualify? Roth IRAs, 401(k)s, 403(b)s, donor-advised funds, private foundations, or gifts where the donor receives goods or services.
  • Custodian requirement: The distribution must go directly from the IRA trustee/custodian to the church.

For Parishioners 73 and Older: QCDs & RMDs

Once a person reaches age 73, they are required to take a Required Minimum Distribution (RMD) from their Traditional IRA each year. A QCD can satisfy all or part of the RMD while also supporting the church.

Benefits include:

  • Supporting the church’s mission in a meaningful way
  • Fulfilling the RMD requirement
  • Keeping the distribution tax-free

Reporting & Documentation

  • Donors will need a written acknowledgement from the church confirming the gift amount and that no goods or services were received.
  • QCDs do not require the donor to itemize deductions.

How Churches Can Encourage QCD Giving

  • Mention QCDs in communications. Example: “If you are 70½ or older and have a Traditional IRA, you may be able to give directly to the church through a Qualified Charitable Distribution (QCD). If you are 73 or older, a QCD can also count toward your Required Minimum Distribution. Ask your IRA custodian or financial advisor for details.”
  • Send reminders early. Don’t wait until December—because donors must contact their IRA custodian to complete the distribution, communications should go out well in advance to allow enough time for the transfer.
  • Educate vestry and other leaders. Ensure leaders understand the basics so they can confidently share this giving option with parishioners.
  • CLICK HERE for a PDF and editable Word document for a fact sheet for your congregation.

Note: This information is provided for general educational purposes only; individuals are encouraged to consult their financial or tax advisor regarding their own situation.

For more detailed information, see IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs).

With great appreciation for all you do!
-Cynthia