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Learn More About How a Qualified Charitable Distribution (QCD) Can Benefit You

Gabi’s Workforce is a 501(c)(3) nonprofit that empowers adults with special needs to leverage their unique abilities to provide exceptional fulfillment services.

How a Qualified Charitable Distribution (QCD) works

How a Qualified Charitable Distribution (QCD) works

You're at least 70½ years old with IRA funds you no longer need.

You make a Qualified Charitable Distribution (QCD) from your IRA.

Your QCD goes directly to Gabi's, supporting a cause you care about!

Smart Giving From Your IRA — Qualified Charitable Distribution

Did you know…if you are 73 years old or older, your QCD can count towards your required minimum distribution (RMD)?

Many donors feel that directly transferring funds from IRAs is a great tax-saving way to help Gabi’s Workforce. This popular gift option was commonly referred to as an IRA charitable rollover and is now known as a qualified charitable distribution, or QCD for short.

Benefits of Giving From Your IRA:

  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
  • Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower Medicare premiums and decrease the amount of Social Security that is subject to tax.
  • The transfer of funds counts toward your annual Required Minimum Distribution (RMD) if you 73 or older.

Be sure to check with your professional advisor to determine whether this gift plan is right for you. This information is not meant as tax or legal advice.

How it Works:

  • You must be 70½ or older, and if you are required to take minimum distributions (RMD) at 73 or older, this gift will satisfy all or part of your obligation.
  • You can give any amount (up to $111,000 per individual) in 2026 from your IRA directly to Gabi’s Workforce (we are a qualified charity to receive these gifts).

IRA institutions don’t always include donor names, contact information, or designations with the gift, which can delay your tax receipt and potentially result in tax liabilities. To help prevent this, email info@gabisworkforce.org, or call 919-274-1449 with:

  1. Your full name, mailing address, and phone number
  2. Name of the financial institution
  3. The date you made the request
  4. Amount of gift
  5. Designation, for example, area of most need, specific program, region or local office

To ensure your gift is credited toward the 2026 tax year, please request your transfer by December 1, especially if you are relying on this gift to fulfill your Required Minimum Distribution.

Information to initiate your QCD gift:

DID YOU KNOW?

It’s simple to name Gabi’s Workforce as the beneficiary of all or a percentage of your IRA, and it will pass to Gabi’s Workforce tax-free after your lifetime. Contact your IRA administrator to request a change-of-beneficiary form or download one from your provider’s website.

Sample beneficiary designation

Legal name: Gabi’s Workforce
Address: 510 Pylon Street, Raleigh, NC, 27605
Federal Tax ID number: 83-3267584

FREQUENTLY ASKED QUESTIONS

No. You must be 70½ by the date you make the gift.

Yes, absolutely. Beginning in the year you turn 73, you can use your gift to satisfy all or part of your RMD.

A required minimum distribution (RMD) is the amount of money an individual must withdraw from certain types of retirement accounts (such as traditional IRAs and simplified employee pension (SEP) plans) in order to avoid tax penalties from the Internal Revenue Service. The required distributions take effect beginning April 1 in the year after the account owner turns 70 ½ years old.

Each year, an individual’s mandatory RMD is calculated by dividing the account’s prior year-end value with a corresponding distribution period. But how does an individual determine their distribution period? The IRS has created what it calls a RMD worksheet which provides you with the distribution period to use based on your current age. The RMD worksheet can be found on the IRS website and must be checked annually.

When a donor makes a charitable IRA rollover gift (up to $100,000), that gift counts toward the donor’s RMD. Additionally, the donor does not have to recognize the transfer as taxable income on his or her tax return. While the transfer will not be eligible as a charitable tax deduction, the donor may avoid being taxed at a higher tax bracket by not including the RMD in their adjusted gross income (AGI). This reduction in AGI may have other tax benefits and may also lower the taxpayer’s Medicare Part B premiums.

When a donor makes a charitable IRA rollover gift (up to $100,000), that gift counts toward the donor’s RMD. Additionally, the donor does not have to recognize the transfer as taxable income on his or her tax return. While the transfer will not be eligible as a charitable tax deduction, the donor may avoid being taxed at a higher tax bracket by not including the RMD in their adjusted gross income (AGI). This reduction in AGI may have other tax benefits and may also lower the taxpayer’s Medicare Part B premiums.