A Qualified Charitable Distribution (QCD) is a great way for individuals that are over 70 &1/2 years old with an IRA and a need to withdraw funds to meet a Required Minimum Distribution (RMD), to make a contribution to First Baptist Church of Melbourne. The money you contribute to FBCMel using a QCD is not included in your adjusted gross income on your tax return. This is potentially a better option for individuals than taking a RMD as income and then donating the amount to the church.
According to the IRS:
A qualified charitable distribution (QCD) is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for charitable contribution. See Records To Keep in Pub. 526.
Qualified Charitable Distribution benefits include:
- The gift comes from your IRA, using pre-tax dollars.
- The gift amount is excluded from your taxable income.
- The gift amount can be applied towards this year’s minimum distribution requirements.
Anticipated Question: can donors contributing IRA assets to a charity claim a tax deduction?
No, because a contribution to a qualified charity is not taxed as income under the IRA Rollover provision, the donor cannot claim a tax deduction for that contribution.
To make an IRA qualified charitable distribution to the Church that includes tithing or other funds, a donor should:
Instruct your IRA administrator to make the check payable to First Baptist Church of Melbourne and send the check addressed as follows:
First Baptist Church of Melbourne
3301 Dairy Road
Melbourne, Florida 32904
Notify the Financial Office by mail to the above address or by email to email@example.com that the distribution is being made. Include the donor’s name, your envelope number (if applicable), mailing address, name of IRA administrator, and allocation of the donation among tithing, Greater Things, or other funds of the Church. This will help ensure that the donation is credited properly.
A donor may contact the Financial Office at 321-723-0561 if there are questions or additional information is needed.
If you have questions, you should contact your financial advisor, accountant, or tax preparer. Additional information can be found at: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals
Please note: The information found on this page is intended as general information only and is not intended as legal, tax, or other professional advice. Donors and others should consult their own tax professional(s) for specific legal or tax advice on this matter