QCDs: It’s time to get loud!

Written by Clark Collier, CAP(R), CICF Director of Giving Strategies 

Central Indiana nonprofits have a unique opportunity to raise awareness among supporters about Qualified Charitable Distributions (QCDs) from Individual Retirement Accounts (IRAs). Donors age 70½ or older who own an IRA are eligible to transfer up to $108,000 in 2025 directly from the IRA to a qualified charity and, if the donor is at least 73 years old, that transfer counts toward the required minimum distribution (RMD)—in either case without increasing taxable income. By helping your donors understand this vehicle, your organization can open another pathway to support while your donors optimize their tax and retirement planning. 

It’s important to understand the high-level mechanics of a QCD so you can speak knowledgeably with your donors (while always encouraging them to consult their own tax advisors). A valid QCD must be a direct transfer from the IRA custodian to the charity; if the donor takes a distribution and then gives it away, it won’t qualify as a QCD. Also, QCDs must come from IRAs (not employer plans), and the donor cannot receive any goods or services in return for the gift. By being aware of these parameters, you and your team can work with donors and their advisors to channel QCD gifts appropriately and avoid common pitfalls. 

What’s more, as the tax and legislative landscape evolves, presenting QCDs as part of the giving conversation can strengthen your fundraising strategy. Because a QCD lowers a donor’s adjusted gross income (AGI) rather than simply serving as an itemized deduction, it offers multiple benefits, especially for donors whose standard deduction is already large or who are subject to limits on charitable deductions. When you incorporate this strategy into your donor messaging and stewardship conversations, you are helping supporters give more with less friction, while your organization gains from their generosity. 

The CICF Collaborative team is available as a resource and sounding board for this “IRA to charity” option. First and foremost, though, it is crucial that you encourage your donors to consult their tax and financial advisors.  

By working together—nonprofits, donors, advisors, and the community foundation—you can expand philanthropic impact in Central Indiana while helping donors make smart choices aligned with their goals and the needs of the community. 

About the CICF Collaborative 

CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more » 

About the Author 

Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy (R), Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.