Retirement accounts

Retirement assets—including IRAs, 401(k)s, and other tax-deferred accounts—can be powerful tools for charitable giving.

During-lifetime gifts

Individuals age 70½ or older may make Qualified Charitable Distributions (QCDs) from their IRAs directly to nonprofit organizations.

These gifts:

  • Count toward Required Minimum Distributions (RMDs)

  • Do not increase taxable income

  • Do not require itemizing deductions

After-lifetime gifts

Donors may designate a nonprofit as the beneficiary of a retirement account using a simple beneficiary designation form.

These gifts transfer directly to the organization outside of probate.

Example

A donor begins making annual Qualified Charitable Distributions of $10,000 from an IRA. Later, the donor names the nonprofit as the beneficiary of the remaining IRA balance.

Pro tip

Because retirement assets can be heavily taxed when inherited by individuals, they are often among the most tax-efficient assets to leave to charity.

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