Qualified Charitable Distributions

The Qualified Charitable Distribution law allows individuals 70½ or older to give up to $100,000 directly from their IRA to one or more qualified charities without paying federal income tax on the withdrawal. Donors who wish to make a gift to benefit YWCA Minneapolis or who are fulfilling an existing pledge may choose to make a qualified charitable distribution from their IRA.

Qualified Charitable Distribution Details:

  • Donors must be age 70½ or older at the time the gift is made.

  • A Qualified Charitable Distribution (QCD), also called an IRA charitable rollover, can only be made from an IRA (excluding an ongoing SEP or SIMPLE IRA). Owners of other types of retirement accounts such as 401(k) or 403(b) accounts can, however, roll money from those other retirement accounts over to their IRA and then donate it tax free as a QCD. Donors should consult with their advisor before doing so.

  • Donors must ask their plan administrator to make a direct transfer of funds to a qualified public charity. It is important not to withdraw funds before making a gift.

  • Gifts cannot be used to fund a gift annuity or charitable remainder trust.

  • Each donor may give up to $100,000 per year. For couples, each spouse may give up to $100,000 from their IRA.

  • Distributions made under this law can be used to satisfy the donor’s required minimum distribution (RMD). However, qualified charitable distributions are not limited to the donor’s RMD.

  • Donors can choose to exclude the distribution from income on their federal tax return. If they do, they will not receive a charitable income tax deduction.

  • To qualify for tax-free treatment, donors cannot receive goods, services, or a personal benefit (such as tickets for events) in return for the IRA charitable rollover gift.

To make a gift to YWCA Minneapolis from an IRA, contact your IRA plan administrator and request a direct qualified charitable distribution from the IRA account to YWCA Minneapolis, a 501(c) (3) organization.

Mail the check to:
YWCA Minneapolis
Attn: Organizational Advancement

1130 Nicollet Mall
Minneapolis, MN 55403

Please contact YWCA Minneapolis at 612-215-4158, or the person you work with at YWCA to inform us of your gift and to let us know how we should direct it.