Many of us give to the organizations and causes that have shaped our lives. Whether it’s conserving the trails we hike, the fields we pass each day, or the forests that define Vermont’s landscape, charitable giving is one way to leave a lasting legacy.
What many people don’t realize is that there may be a tax-smart way to make those gifts.
If you are age 70½ or older and have an Individual Retirement Account (IRA), you may be eligible to make a Qualified Charitable Distribution (QCD) directly from your IRA to a qualified nonprofit. Once you reach age 73, those gifts can also count toward your Required Minimum Distribution (RMD), while potentially reducing your taxable income. For many retirees, this can have meaningful benefits. Because a QCD is transferred directly from an IRA to a charitable organization, it is generally not included in your adjusted gross income. Depending on your circumstances, that may help reduce taxes, avoid higher Medicare premiums, or lessen the taxation of Social Security benefits. With recent changes to tax law leading fewer people to itemize deductions, QCDs have become an even more valuable charitable giving option for many donors.
Every financial situation is different, so it’s important to consult your financial advisor or tax professional before making decisions. But if charitable giving is already part of your plans, it’s worth asking whether a Qualified Charitable Distribution is right for you.
August is National Make-A-Will Month, making it a fitting time to think about the legacy you hope to leave. Whether through annual giving, a Qualified Charitable Distribution, or a future estate gift, thoughtful planning can help preserve the places and organizations that matter most.
At Stowe Land Trust, we’re always happy to answer questions about charitable giving options and work alongside your professional advisors. Together, we can ensure that the landscapes we treasure today remain protected for generations to come. To learn more or set up a Qualified Charitable Distribution or other giving, reach out to ann@stowelandtrust.org or call (802) 253-7221 x 7.
By Ann Nygard, Director of Development, Stowe Land Trust