Part One of a Six-Part Series
If you are age 70½ or older, a Qualified Charitable Distribution can turn retirement assets into meaningful local impact. By directing an eligible IRA gift to CFSA, you can support Southern Arizona causes you care about while the distribution is generally excluded from taxable income and may count toward your required minimum distribution.
Example: Imagine a retired couple in Green Valley who usually gives to a few local nonprofits each December and also takes required distributions from their traditional IRAs. This year, instead of receiving the full IRA distribution as taxable income and then writing checks from their bank account, they ask their IRA custodian to send a $15,000 Qualified Charitable Distribution directly to an eligible CFSA charitable fund supporting basic needs and community resilience in Southern Arizona. The gift may count toward the donor’s required minimum distribution, is generally excluded from taxable income, and immediately becomes charitable capital for the region they call home.
The takeaway: a QCD can be a simple way for eligible IRA owners to meet retirement distribution requirements while moving dollars directly into Southern Arizona impact.
CFSA can help connect your generosity with eligible charitable funds and community priorities. QCDs must move directly from your IRA custodian to an eligible charity and cannot be contributed to a donor advised fund. Start early, and talk with your tax advisor and IRA custodian to confirm whether a QCD fits your year-end plan.
Sources: IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs); IRS Publication 526, Charitable Contributions; and IRS guidance on Qualified Charitable Distributions, including the requirements that the transfer be made directly from an IRA to an eligible charity and that QCDs may not be made to donor advised funds. This information does not constitute tax or legal advice. Always confirm eligibility, annual limits, and recipient requirements with your tax advisor and IRA custodian.
Back to all articles
