As followers of Christ, we know that everything we have is a gift from God, entrusted to us for His purposes. For many of our faithful supporters, retirement savings are part of that stewardship story. If you are age 73 or older, the IRS requires you to take a Required Minimum Distribution (RMD) each year from your traditional IRA or other qualifying retirement accounts.
But here’s the good news: you can use your RMD to make an eternal difference—while also enjoying potential tax benefits.
What is an RMD?
An RMD is the minimum amount you must withdraw annually from certain retirement accounts once you reach the required age. These withdrawals are typically taxable as income.
A Giving Opportunity: The Qualified Charitable Distribution (QCD)
Instead of taking your RMD as income, you can direct up to $100,000 per year straight from your IRA to a qualified charity—like our ministry—through a Qualified Charitable Distribution. When done correctly:
- The amount given counts toward your RMD.
- You won’t pay income tax on the donated amount.
- Your gift goes directly to advancing God’s work.
Why This Matters for the Kingdom
Your RMD can become more than a financial requirement—it can be a powerful act of worship. By giving through a QCD, you’re not only meeting IRS rules, you’re fueling ministry programs, outreach, and the spread of the Gospel.
Example:
If your RMD is $15,000, you could give that amount directly to our ministry via a QCD. You meet your legal obligation, avoid adding taxable income, and help us share Christ’s love with those in need.
How to Get Started
- Contact your IRA custodian and request a Qualified Charitable Distribution to our organization.
- Provide them with our legal name, address, and tax ID number.
- Let us know so we can thank you and share how your gift is making an impact.
“Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” — 2 Corinthians 9:7
If you’d like to learn more about using your RMD to support our mission, please reach out to our office or contact Jack Dyson, Lead Ambassador at jack@leadersoffaith.org. We’d be honored to walk with you through the process.
An Additional Thought from the IRS. You don’t have to wait for 73½.
IRS Tax Tip 2022-171, November 8, 2022
In most cases, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them but there are some exceptions. A qualified charitable distribution is one of the few exceptions.
A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. QCDs can’t occur from Simplified Employee Pension plans and Savings Incentive Match Plan for Employees IRA.
Making a QCD can benefit the taxpayer by reducing their taxable income while they support qualifying charitable organizations of their choice. The taxpayer doesn’t have to worry about meeting the standard deduction or itemizing deductions with a QCD.
Financial institutions report QCDs on Form 1099-R for the calendar year the distribution occurs. There’s no number or letter code on Form 1099-R that indicates the distribution was a QCD.
QCD Guidelines
- Taxpayers who make a QCD must be at least 70½ years old on the day of the distribution.
- A QCD will count toward a required minimum distribution.
- The taxpayer must have an acknowledgement of the contribution.
- The amount of the QCD can’t be more than the amount of the distribution that would count as income.
- Declare the QCD as income to claim the charitable contribution as a deduction.
- The maximum annual exclusion for QCDs is $100,000.
- When filing a joint return, the spouse can also have a QCD and exclude up to $100,000.
- Any QCD more than the $100,000 exclusion limit counts as income like any other distribution.
Prayer request from an elected official:
Thank you for being faithful to praying for us all. It truly means so much and makes a difference. I can feel the prayers!
Personal situations are leveling out; praise the Lord! A family member is making a change. Prayers for the adjustment would be appreciated.
Professionally, always discernment and boldness, knowing what to say and do (and to not say or do) and the timing of it; to see the consequences of my votes before I take them; for a softened heart to see the good in my colleagues.