Qualified Charitable Distribution (QCD)
- Make a gift using your IRA to support the ACLU’s work today
- Tax-free withdrawal
- Fulfill your Required Minimum Distribution
Federal law allows people age 70½ or older to make direct transfers up to $100,000 per year per person to charitable organizations from their Individual Retirement Account (IRA), without the withdrawal being treated as taxable income. The withdrawal can be counted toward your Required Minimum Distribution.
Frequently Asked Questions
Q. From which accounts can I make transfers?
A. Transfers must come from your IRA, made payable to the ACLU Foundation of Delaware. 401(k), 403(b), and other retirement plans do not qualify. Ask your advisor about transferring funds from these other accounts to an IRA.
Q. How do I make my gift?
A. Contact your IRA custodian and follow their procedures to request a “Qualified Charitable Distribution.” The check must be accompanied by your name and address information in order for you to receive a written acknowledgement from us.
Please provide the recipient information below to your custodian, along with our Tax ID# 51-0220856. Please direct your check, drawn on your IRA account and made payable to the ACLU Foundation of Delaware, to:
American Civil Liberties Union Foundation of Delaware
Attn: Gift Processing – IRA Distribution
100 W 10th St #706
Wilmington, DE 19801
Q. Can I deposit my IRA withdrawal in my personal, non-IRA account, then write a check from that account?
A. No, the funds must be transferred directly from your IRA. If not, you must report the withdrawal as taxable income.
Q. My IRA custodian wants to mail the check directly. Is that allowed?
A. Yes, many custodians will mail a check directly. However, if you want a written acknowledgment, it’s important for you to instruct your custodian to include your name and address.
Q. Will I receive a gift acknowledgement?
A. We can only mail an acknowledgement to you if your name and address are provided along with the check. You may not use the acknowledgement to claim a deduction. (See “tax implications” below.)
Q. What are the tax implications?
A. IRA Qualified Charitable Distributions are excluded as gross income for federal income tax purposes on your IRS Form 1040. The gift counts toward your required minimum distribution for the year in which you made the gift. You could avoid a higher tax bracket that might otherwise result from adding an Required Minimum Distribution (RMD) to your income.