What are Qualified Charitable Contributions (QCDs) & What you Should Know.

By now, many of you have likely received a Qualified Charitable Distribution (QCD) or have been approached by parishioners asking how to make one. What was once a niche form of giving has become a major source of charitable support across the country — with Americans donating billions of dollars each year from IRAs to parishes, dioceses, and nonprofits. QCDs are one of the easiest, most tax-wise ways for parishioners to give — but they still generate plenty of questions. Understanding the basics will help you talk confidently about this important opportunity and guide your parishioners toward making informed, faith-driven choices.

What Is a QCD?

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from an individual’s IRA account to a qualified charity, such as:

• Your parish

• The Archdiocese of Baltimore

• A specific Catholic ministry that’s especially meaningful to the donor.

The donor must be age 70 1/2 or older at the time of the gift. A QCD can count toward all or part of a parishioner's Required Minimum Distribution (RMD) for the year.

An RMD is the minimum amount the IRS requires individuals to withdraw each year from certain retirement accounts once they reach a specified age, whether or not the funds are needed for living expenses. For most people, today, RMDs begin at age 73 (rising to age 75 in 2033 for younger generations).

Knowing a few basics about QCDs can help you guide parishioners who come to you with questions and educate them about this tax-wise way of giving.

While the technical process is handled by the donor’s IRA administrator, parishioners often come to their pastor first for clarity and reassurance. The following points can help you frame the value of this type of gift:

• It’s Tax-Smart: Parishioners who make QCDs can lower their taxable income, which may reduce income taxes, Social Security taxation, or Medicare premiums.

• It’s Simple: The parish doesn’t process or initiate the gift — the donor’s IRA custodian does.

• It’s Flexible: Donors can give once annually or set up monthly or quarterly QCDs, mirroring regular offertory support.

• It’s Substantial: In 2025, individuals can contribute up to $108,000 per year ($216,000 per couple) directly from their IRAs.

• It’s Direct: To qualify as a QCD, the funds must be transferred directly from the donor's IRA to the parish or other qualified charity and may not pass through the donor first.

How a Parishioner Makes a QCD

When a parishioner wants to make a Qualified Charitable Distribution (QCD), providing a few simple pieces of guidance can help them take the next step with confidence. When someone asks how to make a QCD, your role is to affirm their generosity and then direct them to their IRA administrator. The IRA custodian will provide the necessary forms and will send the gift directly to the parish or other qualified ministry.

Some helpful tips

• The check must be made payable directly to the parish, archdiocese, or qualified ministry and not to the donor personally.

• The giver should consult a tax advisor to confirm eligibility and understand how a QCD fits into their overall tax situation.

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Giving from Your IRA: A Simple Way to Support Our Parish

If you are age 70½ or older, you may be able to support the mission of our parish through a Qualified Charitable Distribution (QCD) from your IRA. A QCD allows you to give directly from your IRA to the parish and can count toward your Required Minimum Distribution (RMD) for the year, while potentially reducing your taxable income.

QCD gifts can be made as a one-time contribution or set up on a recurring schedule, such as monthly. This makes it an easy, secure way to provide steady support for the ministries, outreach, and daily life of our parish.

To begin, contact your IRA administrator and request a Qualified Charitable Distribution made payable to our parish.

We're here to help!

Your advancement team is here to support you in this work and is always happy to assist if questions arise or additional guidance would be helpful. Please don't hesitate to reach out and we will be glad to support you and your parishioners in these conversations.