IRA Charitable Rollover
You may exclude from your taxable income up to $100,000 of IRA Charitable Rollovers to a Single Charity Fund or multiple Single Charity Funds at the PCA Foundation. Your spouse also may exclude up to $100,000 of IRA Charitable Rollovers. An IRA Charitable Rollover is called a “Qualified Charitable Distribution” (QCD) in the tax code. A QCD is a distribution from a traditional IRA (account or annuity) made directly to a qualified charity after the IRA owner has reached age 70 ½. (You may direct a QCD from a Roth IRA, but likely to no tax advantage, or from a SEP or SIMPLE IRA that is not “ongoing.” QCDs may not come from a 401(k) plan or 403(b) tax sheltered annuity, but may come from IRAs that have received rollovers from such plans or TSAs. Please consult your tax advisor.)
An exclusion from taxable income that you would otherwise have to recognize due to the required minimum distribution (RMD) rules produces essentially the same tax benefit as a charitable contribution deduction. In fact, it is more beneficial than a charitable contribution when you do not itemize your charitable-contribution deductions because the standard deduction is higher. In that case, you get the exclusion in addition to the standard deduction. The exclusion from taxable income due to a QCD may also reduce income tax on Social Security benefits and surcharges on Medicare premiums – again, consult your tax advisor.
Notably, you may not direct a QCD to a donor-advised fund such as the PCA Foundation’s Advise & Consult Fund or Increase Fund, but you may direct a QCD to a PCAF Single Charity Fund, or allocate a QCD among multiple Single Charity Funds (which are not deemed donor-advised funds under the tax code).
You may recommend grants from a Single Charity Fund in any amounts and over any period of time you desire, but only to the charity identified as the beneficiary of the fund at the time you direct the QCD to it. You also may choose from a number of options for investing the fund.
Reduce Your Taxes
Exclude from your taxable income amounts that have never been taxed (and now, never will be taxed). Plus, take the standard deduction.
Simplify Your Giving
Establish one or more Single Charity Funds for charities you wish to support over a few or many years.
Advance God’s Kingdom
At your pace, recommend grants to your church and other favorite charities, proclaiming God’s inexpressible gift in you.
How It Works
Establish one or more Single Charity Funds online or by calling or emailing us with names of charities and allocations of proposed QCD to each, before you deliver instructions to your IRA custodian.
Instruct IRA Custodian
Instruct your IRA custodian to send the distribution directly to the PCA Foundation.
Exclude QCD Amount
Exclude from your taxable income up to $100,000 (or more in years after 2023) of your QCD. Then, depending on the amount of your other possible itemized deductions, claim the standard deduction on your tax return.
Recommend grants from each Single Charity Fund to its charity in any amounts and over any period of time you desire.
If you’re interested in directing a charitable rollover from your IRA to the PCA Foundation, or have further questions, contact our gifting and operations assistant, Tracey Avery. If you are ready to initiate a charitable rollover, click to our IRA Charitable Rollover Instructions page.
additional complex services
Our gift-processing services make a variety of donations possible.
When you give to a PCAF Charitable Remainder Trust, you take a deduction for the gift now, the trust pays you (or beneficiaries you name) an income stream for life or a period of years, and the trust pays the remainder to your PCAF donor-advised fund for ultimate distribution to your favorite charities. Advantages include increased income that is more secure and diversified, deferral of capital gains tax on the sale of any funding asset, and an immediate accelerated charitable deduction for a future gift.
A PCAF Charitable Lead Trust operates in reverse to a Charitable Remainder Trust. It pays the income stream to your PCAF donor-advised fund for ultimate distribution to your favorite charities, and pays the remainder to your heirs or other beneficiaries (or with certain kinds of CLTs, to you). Advantages may include reduced or eliminated estate and gift taxes, and increased value of charitable deductions moved to years when taxable income and marginal tax rates are higher.
Appreciated private non-cash assets for giving include family and other privately-held businesses and investment funds in the form of S corporation, LLC, or limited partnership, stock options, real estate, and even cryptocurrency. Giving such assets produces the largest deductions, consisting of exclusion from capital gains (the equivalent of a deduction) plus an actual charitable deduction.