For many nonprofits, gifts from long-time supporters over age 70½ represent a vital source of stability and growth. Yet, one of the most powerful giving tools available to this group remains underutilized: the Qualified Charitable Distribution (QCD).
A QCD allows individuals aged 70½ or older to donate up to $105,000 annually (as of 2024) directly from their IRA to one or more qualified charities—without paying income tax on the withdrawal. These gifts count toward the donor’s Required Minimum Distribution (RMD) and can reduce their taxable income, making QCDs one of the most tax-efficient ways to give.
For nonprofits, QCDs can unlock a steady and reliable stream of mid- to large-sized gifts from some of their most loyal supporters—those who have already expressed deep commitment but may not have realized the potential of giving directly from their IRA.
Unfortunately, awareness remains low. Many donors don’t know QCDs exist, or assume the process is complicated. That’s why donor education is critical. Nonprofits that proactively inform their supporters about QCDs often see immediate increases in planned and annual giving, especially when they make the process simple and accessible.
That’s where LifeLegacy comes in. Through our Giving Suite, LifeLegacy helps nonprofits launch streamline, and simplify the QCD process for donors, directly on their website, enabling them to initiate their gift online in minutes. In addition to the online tool, LifeLegacy provides best-in-class marketing support, including sample outreach emails, letters, social posts, and newsletter content, so your organization can easily promote QCDs to your audience without the overhead or lift.
By incorporating QCD education into your year-end or legacy giving communications, you help donors make more informed decisions about their philanthropy, and help your nonprofit secure revenue that might otherwise be left on the table.
As the number of retirees with IRAs continues to grow, QCDs are fast becoming one of the most beneficial and reliable giving channels for nonprofits of every size. Start educating your donors today and make it easy for them to give smarter, not just more.
With LifeLegacy, your nonprofit can modernize legacy giving, empower donors to maximize their impact, and strengthen your mission’s financial future…all with one simple, digital solution, The Giving Suite.
Head of Partnerships
Craig@lifelegacy.io
Planned giving doesn’t have to be complicated, but for many nonprofits, it still feels that way. For years, legacy gifts have depended on personal outreach, mailers, and in-person events to keep donors engaged. That approach worked for a while, but times are changing.
In one of my first planned giving discussions early in my fundraising career, I faced something I had never considered before. Over lunch, a longtime donor hesitantly told me he had no one to serve as executor of his estate. He had confided in me about the strained relationship with his children and extended family, leaving him with a difficult decision. It was hard for him to talk about, and my job at the moment was, first and foremost, to listen.
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