Qualified Charitable Distribution (QCD)
- Make a gift using your IRA to support the ACLU’s work today
- Tax-free withdrawal
- Fulfill your Required Minimum Distribution
Federal law allows people age 70½ or older to make direct transfers up to $100,000 per year per person to charitable organizations from their Individual Retirement Account (IRA), without the withdrawal being treated as taxable income. The withdrawal can be counted toward your Required Minimum Distribution.
Q From which accounts can I make transfers?
A Transfers must come from your IRA, made payable to the ACLU Foundation. 401(k), 403(b), and other retirement plans do not qualify. Ask your advisor about transferring funds from these other accounts to an IRA.
Q How do I make my gift?
A Contact your IRA custodian and follow their procedures to request a “Qualified Charitable Distribution.” The check must be accompanied by your name and address information in order for you to receive a written acknowledgement from us.
Please provide the recipient information below to your custodian, along with our Tax ID# 81-0445339. Please direct your check, drawn on your IRA account and made payable to the ACLU of Montana Foundation, to:
American Civil Liberties Union Foundation of Montana, Inc.
Attn: Gift Processing
P.O. Box 1968
Missoula, MT 59806
Q Can I deposit my IRA withdrawal in my personal, non-IRA account, then write a check from that account?
A No, the funds must be transferred directly from your IRA. If not, you must report the withdrawal as taxable income.
Q My IRA custodian wants to mail a check directly to the charity. Is that allowed?
A Yes, many custodians will mail a check directly to the charity. However, if you want a written acknowledgment, it’s important for you to instruct your custodian to include your name and address.
Q Will I receive a gift acknowledgement?
A We can only mail an acknowledgement to you if your name and address are provided along with the check. You may not use the acknowledgement to claim a deduction. (See “tax implications” below.)
Q What are the tax implications?
A Federal: The transfer is not recognized as a taxable withdrawal from your IRA, and does not afford you an income tax charitable deduction.
State: Tax laws vary by state. Some states have a state income tax and will include the transfer as income. Of those, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid.
Q Can I use a QCD to fund a charitable gift annuity?
A No, gift annuities are not eligible.
Please note: This information is not intended as tax or legal advice. We recommend that you consult with your legal and financial advisors to learn how a gift would work in your circumstances. Laws and regulations governing all gifts and availability of certain life income gifts vary by state.