Donating funds from an Individual Retirement Account (IRA) directly to a qualified charity is a tax-savvy way to support your favorite causes, especially for those over a certain age. This method, known as a Qualified Charitable Distribution (QCD) or IRA Charitable Rollover, offers several benefits:

• Tax-Free Transfers: If you’re 70 ½ or older, you can transfer up to $108,000 per year directly from your IRA to an eligible charity, like SPF, without including the distribution in your taxable income.
• Satisfies Required Minimum Distributions (RMDs): For those 73 or older and subject to RMDs, a QCD can satisfy all or part of your annual RMD obligation.
• Doesn’t Require Itemizing: This strategy allows you to benefit from charitable giving even if you don’t itemize deductions on your tax return.
• Reduces Taxable Income: By excluding the QCD from your gross income, you can lower your overall taxable income, potentially reducing your Medicare premiums and the amount of Social Security benefits subject to tax.
• Potential for Larger Donations: The current limit for QCDs is per individual ($108,000 in 2025, indexed for inflation), so married couples can give up to $216,000 per year combined if both spouses meet the age and IRA requirements.

Eligibility

• Age: You must be 70 ½ years or older at the time the distribution is made.
• Qualified Charity: The recipient must be an eligible 501(c)(3) public charity. Donations to donor-advised funds, private foundations, or supporting organizations generally do not qualify for QCD treatment.
• Direct Transfer: The funds must be transferred directly from your IRA custodian to the qualified charity.
• No Benefits Received: You cannot receive any goods or services in return for the contribution to qualify for tax-free treatment.
• Timing is crucial! To count towards the current tax year, your QCD must be processed by your IRA custodian and received by the charity before December 31st.

Next Steps

1. Contact Your IRA Custodian: Inform your IRA administrator of your intention to make a Qualified Charitable Distribution and instruct them to transfer the desired amount directly to Seattle Parks Foundation. Provide our Tax ID: 91-1998597 and mailing address: Seattle Parks Foundation, PO Box 3541, Seattle, WA 98124-3541
2. Provide Your Contact Information: Ensure the IRA custodian includes your full name and mailing address, and indicates that the transfer is a QCD, so the charity can properly acknowledge the gift. Indicate the purpose of the gift (greatest need or for a specific partner)
3. Get a Receipt: Once the transfer is received, Seattle Parks Foundation will provide a written acknowledgment confirming the date and amount of the contribution and stating that no goods or services were received in return
4. Report on Your Tax Return: When filing your tax return, include the total IRA distribution on Line 4a, exclude the QCD amount on Line 4b, and write “QCD” next to Line 4b.