Enhance your impact while enjoying potential tax benefits with a Qualified Charitable Distribution. By directly donating funds from your IRA to a qualified charitable organization, like USCHS, you can make a meaningful difference in supporting our work.
A qualified charitable distribution (QCD) is when you directly donate money from your IRA to a qualified charitable organization, excluding SEP or SIMPLE IRAs. If you itemize deductions, donating appreciated non-cash assets like securities and mutual funds held for more than a year can provide extra tax benefits compared to cash donations. Besides claiming a deduction for the asset’s fair market value, you may also avoid capital gains tax that would apply if you sold the asset and donated the cash. This means more money goes to the U.S. Capitol Historical Society (USCHS) and less to taxes.
When donating securities and mutual funds held for the long term, you can deduct up to 30% of your adjusted gross income. For those held for the short term, you can deduct up to 50% of your adjusted gross income, but the deduction is limited to the asset’s cost basis or current fair market value, whichever is lower. QCDs are available to IRA owners aged 70 1/2 or older. QCDs made before the age when you’re required to take minimum distributions from your retirement assets (pre-Required Minimum Distribution QCDs) won’t affect your future required minimum distributions. For specific details, consult your tax advisor.
Many individuals who must withdraw money from their IRA but don’t need it for living expenses choose to make QCDs to support the work of the USCHS. It might be a sensible choice for you too!
You can donate securities and mutual funds to the USCHS in two ways: through an electronic transfer where your broker uses the USCHS DTC number, or by physically mailing the paper certificates to the USCHS. In either case, you’ll need to contact your broker to initiate the transfer. The USCHS appreciates your gift of stock or IRA donation. To get in touch, please email Membership@USCHS.org or call 202-543-8919 ext 23.