Making Qualified Charitable Distribution (QCD)
In 2022, the IRS declared that individuals who are 70-1/2 or older can make charitable donations of up to $100,000 from tax-deferred accounts like IRAs. These are exempt from taxation if they come from a qualified account and go to a 501(c)3 organization such as WDCTA. (** see below)
A QCD can have advantages:
- Counts towards satisfying your RMD without you or the recipient charity having to pay income taxes.
- Not included in your AGI, which is used ot calculate certain other taxes and benefits.
- Does not matter whether or not you itemize deductions on your return (those using the standard deduction would generally receive no benefit from a regular contribution.)
- The regular charitable contribution deduction is typically limited to no more than 50% of AGI. This limit does not apply to a QCD.
Change Is In The Air
Not Just Those Fall Colors!
For the last few year, WDCTA’s state board has been preparing for the changing reality many non-profit organization’s are facing—lack of volunteers. This became more evident with the pandemic when people really started cloistering themselves. That’s why your state board began making changes to our bylaws a few years ago (which you, our members, voted to approve). These changes made it easier for WDCTA to adapt to a changing environment. We can operate as an entity with just the state board and no chapters (as IDCTA does in Illinois) or as a state board with one or multiple chapters. These changes allow us to be flexible and remain viable.
