A Qualified Charitable Distribution (QCD) is a direct donation from an Individual Retirement Account (IRA) to a qualified charity.

Here’s how it works:

• Eligible donors: A person who is age 70 ½ or older is eligible to make a QCD.

• Eligible recipients: Public charities, such as Englishton Park, and private operating foundations are eligible to receive QCDs. Donor advised funds and supporting organizations are not eligible to receive QCDs.

• Eligible accounts: A QCD can be made from most types of IRAs, including traditional IRAs, rollover IRAs, and inherited IRAs.

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Workplace retirement plans, such as 401(k), 403(b), pension, and profit-sharing plans, are not eligible for QCDs.

• Dollar limit: Donors may gift any amount but there is a cap or maximum. In 2025, the maximum amount an individual can donate by  way of QCDs is $108,000. If you are married, each spouse who has reached age 70 ½ is eligible to make up to $108,000 of QCDs from their respective IRAs.

• Impact on Required Minimum Distributions (RMDs): Under current law, an individual who is age 73 or older must take RMDs from his or her IRA each year, even if the individual doesn’t otherwise need the money. A big benefit of a QCD is that it counts toward your RMDs. In other words, if you want to make a charitable gift and if you don’t need your entire RMD for a given year, a QCD allows you to satisfy both your obligation to take an RMD from your IRA and your desire to give to charity. From a timing perspective, a QCD must be made by December 31 of a given year to count towards your RMD for that year. However, it’s best to make QCDs earlier in the year to avoid accidentally taking your RMD before making a QCD.

• Income tax impact: A QCD is not included in your income for federal income 90tax purposes, which means you won’t pay federal income tax on the amount of your QCD. This allows you to receive an income tax benefit for the donation even if you don’t itemize deductions on your federal tax returns. Additionally, since a QCD isn’t included in your income for federal income tax purposes, it won’t move you into a higher income tax bracket or otherwise trigger certain income-based limitations.

• How to do it: Contact the administrator of your IRA to request a QCD.

• To obtain the benefits of a QCD, it’s essential that the donation come directly from your IRA to the qualified charity, bypassing your hands completely.

For a QCD to Englishton Park, you’ll need to provide your IRA administrator with the following information:
Name: Englishton Park, Inc.
Classification: Public charity, qualified 501c3 not-for-profit

EIN: 23-7378186
Mailing address: PO Box 240, Lexington, IN 47138
Phone number: (812)- 889-2681, (812) 493-6659
Email: execdir@englishtonpark.org

As we continue to serve our community, your support is more important than ever!

Your gift to Englishton Park, whether by QCD or otherwise, helps us continue our mission to serve children who are struggling in school and at home.
 

If you’re considering this opportunity or have any questions, we would be more than happy to assist you.

Englishton Park is grateful for your continued trust, and we would love to help you make the most of your charitable giving this year.