Make a Qualified Charitable Distribution from your IRA

UPDATED October 13, 2025

A Qualified Charitable Distribution (QCD) provides a way to support this project and reduce taxable income. Those over 70½ must take a Required Minimum Distribution (RMD) from retirement funds (i.e., an IRA, 401k, or 403b). These distributions are considered regular income and are taxed at the taxpayer’s regular rate. Donating all or part of the RMD to a charity satisfies the RMD on the amount donated while reducing taxable income, saving donors both federal and state tax. For those over 70½ years of age, the Qualified Charitable Deduction from an IRA provides a way to lower the amount of taxable income beyond the standard deduction. You can use your RMD/QCD to receive NAP tax credits available for this project.

To make your Qualified Charitable Distribution to the Agriculture Park:

  1. Contact your financial institution and provide them with the name and the address below.

    • Columbia Center for Urban Agriculture, PO Box 1742, Columbia MO 65205

  2. Contact Billy Polansky (billyp@columbiaurbanag.org or 540-226-3806) to let us know your gift is on the way. Since the check will come to us directly from your financial institution, we may not know who the donation is from, so please contact us ahead of time. Even if you ask your financial institution to put your name on the check, names are often left off of RMD checks we receive.

  3. The EIN, if required by the financial institution is 26-4486257

Key features of Qualified Charitable Distributions:

  • The owner of the IRA must be at least age 70½ at the time of the distribution.

  • The distribution must go directly to a qualified charity (not a donor-advised fund or private foundation).

  • The distribution must come from an IRA. Traditional IRAs are eligible, as well as SEP and SIMPLE IRAs to which the employer is no longer contributing. Distributions from a 401(k) or 403(b) are not eligible, but many 401(k) and 403(b) accounts can be rolled into IRAs.

  • There is no minimum QCD amount, but there is a $108k limit (in tax year 2025) per individual taxpayer. Note that a married couple, both over age 70½, each qualify for the $100k limit so they may be able to use up to $216,000.

  • For some taxpayers, a QCD reduces the Adjusted Gross Income, perhaps keeping them from a higher tax rate, lowering amount of Social Security income that is taxable, and lowering the Medicare tax. 

 

This document is not intended as tax advice, please contact your tax advisor to understand all of the conditions and implications associated with QCDs.

 

For More Information Contact: Billy Polansky 540-226-3806

Billy Polansky