Charitable Deductions


“The income tax charitable deduction is an important incentive to make charitable gifts. Although it is the passion and commitment of donors to the IHM Sisters and our mission that motivates you to give, the availability of a charitable deduction is subject to limitations that may affect the timing and size of your gifts.”

Qualified Charitable Distribution (QCD) from your IRA

What is a qualified charitable distribution?

Generally, a qualified charitable distribution (QCD) s an otherwise taxable distribution from an IRA, (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over, that is paid directly from the IRA to a qualified charity. See Retirement Plans FAQs regarding IRAs Distributions Withdrawals and Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) for additional information.

Why do this?

You may be able to avoid taxes on otherwise taxable distributions if you're drawing from a traditional IRA.

A qualified charitable distribution (QCD) is not subject to ordinary federal income taxes – the amount is simply excluded from your taxable income. In general, QCDs must be reduced by deductible IRA contributions made for the year you reach age 70½ or later. If you've made deductible IRA contributions for the year you turn 70½ or later, consult a qualified tax advisor prior to taking a QCD to determine the amount by which your QCD must be reduced.

Your annual Required Minimum Distribution (RMD) may be donated to a qualified charity.

When can you do this?

You must be at least 70½ at the time of the distribution. A QCD can be made after age 70½ even if you're not subject to RMDs yet (because you're under age 72).

We are grateful to for permission to reprint this information.

Consult with your tax advisor for advice on your specific tax situation.

Contributions to the Sisters of IHM may be deductible for income tax purposes as provided by law. The Congregation is a 501(c)(3) organization; Tax ID # 24-0795454.  Our full legal name is the Sisters, Servants of the Immaculate Heart of Mary, Scranton.