Support The Food Group with a Qualified Charitable Distribution

Contributed by Lee Hickerson, Donor and Volunteer of The Food Group

I donate annually to The Food Group because I agree with their belief: “food for today yields change for tomorrow.” As a former teacher I am most impressed with its Healthy Food Policy. It states, “Healthy food access is a key component in maintaining health and preventing chronic disease.” If we can facilitate getting healthy food to those in need, we accomplish two goals at once: living a healthy, energetic life while possibly reducing disease.

One useful method of donating especially for retirees is to use the Qualified Charitable Distribution, commonly referred to as the QCD.  It allows individuals aged 70½ and older to donate directly from their IRAs. The donation goes directly to a qualified charity, which The Food Group is.

QCDs provide a way for retirees to fulfill their charitable goals efficiently. By giving directly from an IRA, a QCD keeps the distribution amount from increasing taxable income. This can be especially beneficial in maintaining a lower tax bracket.

Example (assuming a 30% combined tax bracket for Federal and State):

• Donate $1000 to The Food Group from your IRA using the QCD.
• This reduces your taxable income by $1000, possibly saving you $300!
• The exact amount you save by donating $1,000 through a QCD will depend on your specific tax situation and tax bracket.
• By not counting the distribution as income, QCDs can help maintain lower Medicare premiums and also potentially reduce taxes on Social Security benefits. This makes them an attractive option for retirees seeking tax efficiency.

A QCD may be a suitable giving strategy for those who:

• Are required to take a minimum distribution from an IRA, but don’t need the funds and would face increased tax liabilities if they took the distribution as income.
• Would like to reduce the balance in an IRA to lower future required minimum distributions.
• Would like to make a larger charitable gift than they could if they simply donated cash or other assets.

If you value the important work The Food Group does with its highly effective operation, and choose to support this outstanding organization with a financial donation, a QCD gets the job done, efficiently and in a tax-savvy way.

Learn More About A QCD