GlobalGiving’s Strategic Giving Associate, Chris Garrity, answers seven of the most common questions donors have about qualified charitable distributions (QCDs).
Chris works with people interested in making QCDs through GlobalGiving—and he knows the QCD rules and processes can be confusing. Here are frequently asked questions and his answers to them.
A: Because GlobalGiving is a qualified, 501(c)(3) charity in the United States and is partnered with local, impactful organizations around the world, you can make a QCD to international organizations. You wouldn’t be able to do that without an intermediary like GlobalGiving. But with GlobalGiving, your QCD can support conservation efforts in Kenya, girls’ education in Peru, and anything in between!
A: Great question! We have a lot of donors who choose to support a combination of projects and organizations every year—often a cause they care about or a recent disaster they saw on the news and want to provide relief for. As long as you include the project names and numbers, you can send a single payment. This is one reason why it’s helpful for you to contact us—so we can make sure we have all the information we need to fully honor your intentions.
A: The cap is $100,000. But there are new laws for QCDs, just passed this year, that will change that. The new QCD rules include a one-time $50,000 QCD transfer to a charitable remainder trust (CRT) or other split-interest gift such as a charitable gift annuity (CGA). Most significantly, the $100,000 cap will now be indexed for inflation, which will allow taxpayers to give even more from their IRAs directly to charity in the future.
A: The earlier, the better. Because QCD rules require a donation to happen through your IRA, there are a few extra steps. You have to make the request (often in writing), and the IRA financial entity has to cut a check. So you are looking at a week or two for processing at least. Also, you never know what can happen in December—a snowstorm could delay mail along with the typical end-of-year rush. So I would recommend putting in your request in early December at the latest for peace of mind!
A: If you are making your first QCD gift, just be sure to include everything in writing and instruct your financial entity to retain those records. You can also reach out to the team at GlobalGiving and tell us that your QCD is incoming and share the financial institution, amount, and any other important information. That way, everyone knows their job. And we can be sure to honor your intentions and send you a donation acknowledgment ASAP.
A: Of course! QCD donations require slightly different language in the donation acknowledgment. When we receive a QCD donation, we automatically apply that special language and include it in the donation acknowledgment. Acknowledgments can be sent via physical snail mail, or if you provide your email address, we can get it to you even more quickly!
A: I just love them because they are such a smart way to give! For folks over 70 years old, you have to take an RMD anyway. You can make a more significant gift and take advantage of the tax benefits. After working with so many donors over the years, I know the first time can be a little intimidating, but it quickly becomes their favorite way to give year after year.
Do you have questions about donating via QCD? Contact us at gifts@globalgiving.org for personalized support.
Note: This is for informational purposes only and is not intended to provide, and should not be relied on, for tax advice. We recommend consulting a financial or tax advisor with any specific questions about how a QCD may impact your personal situation before making any contribution.
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