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Shining a Light on Strategic Giving (August 2023)

IRA Donors Make the Most of WCCF Gives

Photo 3 WCCF Gives logo 1
Bringing Good People and Good Causes Together.

Are your clients taking advantage of IRA Qualified Charitable Distributions?

The Foundation has received more contributions through IRA Qualified Charitable Distributions (QCD) in recent years, especially during the WCCF Gives event which annually supports over 100 local charities. Over its ten-year history, WCCF Gives has transformed the way that many charities fundraise for unrestricted support. But the benefits have not been exclusive to charities alone.

WCCF Gives has also provided new opportunities for those with charitable intent to give more effectively, efficiently, and generously – outcomes that, in many ways, can be attributed to our donors’ strategic use of the IRA Qualified Charitable Distribution.

Over the past five years, we have seen a steady increase in the number of donors utilizing a Qualified Charitable Distribution as a giving tool for WCCF Gives, from just 3 in 2018 to 31 in 2022.

The IRS defines a QCD as “money that individuals who are 70 ½ or older may direct from their traditional IRA to eligible charitable organizations.” The provision has a cap of $100,000 for charitable distributions from individual IRAs each year, and QCDs count towards the Required Minimum Distribution.

Two Older People Looking at Papers

The QCD utilization trends the WCCF has been seeing may be attributed to the fact that more residents in our community are reaching the age threshold of 70 ½.

Additionally, since individuals may exclude the amount distributed directly to the WCCF from their gross income, QCDs can provide the perfect alternative to a cash contribution, and in some cases, it may enable the donor to give more. In fact, it is interesting to note that the average WCCF Gives QCD contribution last year was approximately $6,500 while the average non-QCD contribution was just under $250.

In addition to the tax considerations, QCDs have been growing in popularity among WCCF Gives donors because it is so easy to support multiple charities with a single gift. In fact, one of our WCCF Gives donors who utilizes the QCD annually, is supporting 72 charities with her one QCD this year. Imagine the paperwork if she would have done these distributions individually to each charity!

And because we annually screen charities before they are included on the WCCF Gives website or Check Contribution Form, donors can be assured that their QCD distribution is supporting a charity qualified to receive such a distribution.

If you have a client who regularly supports numerous charities or who would be eligible to make a QCD, you may want to suggest WCCF Gives as a strategic giving opportunity.

Hosting an annual day of giving requires a tremendous investment of financial and staff resources, but despite the high cost, the Foundation has never charged charities or donors a fee to participate. This is our annual gift to the community, and we are pleased to help bring good people and good causes together through WCCF Gives!

The information contained in this publication is not intended as legal or tax advice.