QUALIFIED CHARITABLE CONTRIBUTIONS
Dear SSC Members:
As the season for Required Minimum Distributions (RMD) approaches, we are thrilled to share an incredible opportunity. The IRS has paved the way for individuals aged 70½ and above to make a lasting impact through tax-free donations to their favorite charities. Qualified Charitable Distributions (QCDs) are the key to this remarkable opportunity, and we invite you to join us in making a difference.
Why QCDs Matter:
QCDs provide a hassle-free way for eligible individuals to support charitable causes, helping you give back effortlessly before the year's end.
For those aged at least 73, QCDs also fulfill your RMD requirement, ensuring your
charitable spirit aligns with your financial goals.
Setting Up Your QCD:
If you're an IRA owner looking to make a QCD for 2023, time is of the essence. We
encourage you to act swiftly by contacting your IRA trustee to facilitate the transaction before the year's end.
Key QCD Details:
Distributions from traditional Individual Retirement Arrangements (IRAs) are
typically taxable upon receipt. However, QCDs allow these distributions to
become entirely tax-free when directly transferred from your IRA to an eligible
You have the flexibility to make QCDs electronically or by issuing a check payable
to the charity. It's important to note that an IRA distribution to the owner or a
check made payable to the owner does not qualify as a QCD.
Maximize Your Impact:
Every year, individuals aged 70½ or older can exclude up to $100,000 of QCDs
from their gross income. For couples, spouses aged 70½ or older with IRAs can
collectively exclude up to $200,000 annually.
No need to itemize deductions to benefit from QCDs; the transferred amounts are
not subject to taxation, and no deduction is available for the transfer.
Your 2023 QCD should be reported on your 2023 federal income tax return,
typically filed during the 2024 tax season. Rest assured, your IRA trustee will
provide Form 1099-R in early 2024, summarizing all IRA distributions made in
2023, including regular distributions and QCDs.
Please note that there is no special code for a QCD on Form 1099-R. QCDs are
reported on Line 4 of Form 1040 or Form 1040-SR. For full guidance on reporting,
consult the final instructions for the 2023 Form 1040.
Receipt for Your Generosity:
Although QCDs are not deductible as charitable contributions on Schedule A, it's
essential to obtain a written acknowledgment from the charitable organization
before filing your return. This acknowledgment should detail the date and amount
of the contribution and specify whether you received anything in return.
Now that you're prepared to make a difference through QCDs, you can instruct
your financial institution to issue a check payable to Sacramento Safari Club. Our
Tax ID number is 94-2608049, and all checks can be sent to the following address:
Sacramento Safari Club, P.O. Box 3987, Napa, CA, 94558.
Your generous contributions play a pivotal role in our mission to safeguard
wildlife and their habitats. We wholeheartedly appreciate your support and
commitment to our cause.
Should you have any questions or require assistance with the donation process,
please don't hesitate to contact our treasurer, Mat Halick, at
firstname.lastname@example.org or call 925.395.3107.
Together, one QCD at a time, we can create a lasting impact.
Sacramento Safari Club