Casting Your Legacy: A Deeper Look at IRA Qualified Charitable Distributions

Just as December marks prime fishing season in many waters, it's also the perfect time to consider an IRA Qualified Charitable Distribution (QCD) to support the IGFA's mission. But what exactly is a QCD? Simply put, it's a direct transfer of funds from your eligible IRA to a qualified charity like the IGFA, allowing you to support our mission while potentially reducing your tax burden. Be sure to discuss this with your tax professional as it’s important to consider your tax situation before deciding whether to make a charitable contribution to the IGFA from your eligible IRA.

For anglers 70½ or older, a QCD from an eligible IRA may offer a unique opportunity to support the future of sport fishing while potentially reducing your taxable income. Think of it as the perfect double-header – you may be able to satisfy your Required Minimum Distribution (RMD) if you're 73 or older and if certain rules are met, while advancing IGFA's critical work in game fish conservation and youth education.

Here's why a QCD might be your best cast this December:

  1. Transfer up to $105,000 annually individually from your eligible IRA (or up to $210,000 for married couples with separate eligible IRAs) directly to a qualified 501(c)(3) charitable organization like IGFA
  2. Potentially satisfy your Required Minimum Distribution (RMD) if you're 73 or older as long as certain rules are met
  3. Possibly reduce your taxable income since the distribution may not be counted as income
  4. Support IGFA's mission without affecting your current cash flow

Making a QCD is as smooth as casting with a well-balanced rod: your IRA administrator makes a direct transfer to the IGFA – the funds never pass through your hands. But like planning for that dream fishing expedition, it's important to act soon – QCDs must be completed by December 31 to count for this tax year. For a QCD to count toward your minimum annual IRA distribution, it must be made by the same deadline as a normal distribution, which is usually Dec. 31 of the tax year in question.

While QCDs offer unique advantages for year-end giving, the IGFA offers multiple tax-efficient giving options beyond QCDs. You can create your IGFA legacy through various methods: including IGFA in your will or trust, making the IGFA a beneficiary of your retirement accounts or life insurance policy, giving through a Donor-Advised Fund, or donating appreciated securities to possibly avoid capital gains taxes. To learn more about tax-smart strategies visit our webpage, Casting Your Legacy: Strategic Giving to the IGFA.

Every individual's financial situation and philanthropic goals are unique, just as every angler's relationship with the sport is personal. The key is to find a strategy that aligns with your financial objectives while supporting the aspects of IGFA's vision and mission that resonate most with you.

***This information is for educational purposes only and, as always, be sure to consult your tax professional for the advice best tailored to your individual circumstances. 

For more information about making a QCD to the IGFA or to discuss other legacy giving options, please contact Barbara E. Cini, JD, CFRE, Chief Development Officer, at [email protected] or 954-498-7153, or Eric Combast, Development Director, at [email protected] or 954-924-4325.