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.
Frequently Asked Questions
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# 76-0343171. Please direct your check, drawn on your IRA account and made payable to the ACLU Foundation, to:
ACLU Foundation of Texas
Attn: Gift Processing – IRA Distribution
P.O. Box 8306
Houston, TX 77288
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: The transfer is not recognized as a taxable withdrawal from your IRA, and does not afford you an income tax charitable deduction.
Q: Can I use a QCD to fund a charitable gift annuity?
A: No, gift annuities are not eligible.
Q: I have other questions. Who do I contact?
A: Please email us at [email protected] or call us at (713) 942-8146, ext. 1022.