Tax-Smart Giving Options

Qualified Charitable Distributions

(for those over age 70 1/2)

A Qualified Charitable Distribution allows you to transfer funds directly from your IRA to the church. The transfer can count toward your Required Minimum Distribution (RMD) for the year—but unlike a regular RMD withdrawal, the amount is not included in your taxable income. This means you satisfy your distribution requirement while also supporting the campaign, and you don’t pay income tax on the amount given.

While a QCD donation can be used to count towards your annual RMD requirement, a QCD is not limited to the RMD required for the year. The 2026 annual QCD limit is $111,000 per person for 2026 ($222,000 per couple). Note that QCD’s can only be made from traditional or inherited IRA accounts.

Gifts of Appreciated Stock

As an alternative to making a cash donation, you can directly donate appreciated stock to the church. When making a direct stock donation you can deduct the full market value on the date of the gift as a tax deduction but avoid reporting any capital gains on the sale of the stock. Not only does this save on taxes, but it also can allow you to rebalance your portfolio without having to report income on your stock sale.

For a stock donation to qualify for this program, it must have been held for more than one year. In addition, stock donations are limited to 30% of your Adjusted Gross Income (AGI) but excess donations can be carried forward to future tax years.

Stock Donations vs. QCDs

One important comparison: if you’re 70½ or older with an IRA, a QCD may actually be more advantageous than a stock donation because it reduces your AGI directly (not just as a deduction) and doesn’t count against the 30% AGI limit. Stock donations work best from taxable brokerage accounts, while QCDs work from IRAs. Many retirees use both strategies in combination.