Your IRA: A Versatile Giving Tool

Claw hammers are built for two completely opposite functions—pounding in nails and pulling them out. That claw isn’t an afterthought, but some people never notice it until someone points it out to them. Your IRA also has two different functions—saving and giving. If you are age 70½ or older, you might consider shifting from tax-advantaged retirement savings to easy, strategic philanthropy.

Giving away retirement savings may feel counterintuitive, but these tax-deferred assets are heavily taxed when received by heirs and not taxed at all when received by a qualified charity. This makes your IRA a highly efficient way to meet your charitable goals.

It’s also versatile, providing three distinct ways to give.

1. Make a difference today.
   If you don’t need your required minimum distribution (RMD), you can choose to make a qualified charitable distribution (QCD) directly from your IRA to us. You pay no tax on the transfer (up to $111,000 in 2026), and it counts toward your RMD if one is due. By not adding an RMD to your total income, you may be able to stay below stated income thresholds, thereby avoiding higher Medicare premiums and surcharges and/or additional tax on your Social Security benefits.
2. Establish a lifetime income.
   Once during your life, you can use a QCD to fund a charitable gift annuity (CGA) or charitable remainder trust (CRT)—gift options that provide you with a steady stream of retirement income in addition to making an impact on our work. Distributions are tax free (up to $55,000) and count toward your RMD. Spouses may combine distributions from their separate IRAs (up to $110,000 total) to create a single CRT or a joint-life CGA, but income payments may only go to the IRA owner and/or the owner’s spouse.
3. Create a legacy.
   Naming us as a beneficiary of your IRA is a flexible way to make a powerful future impact. Simply request a Change of Beneficiary form to make a gift that has no impact on your current finances and can be easily altered if your goals or circumstances shift.

Like a claw on a hammer, an IRA’s charitable potential is strong but often overlooked. When used intentionally, your IRA can provide meaningful support while also minimizing taxes and preserving flexibility for you and your family.