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We're excited to share a new opportunity for tax-efficient gifting that you may not have considered – the Qualified Charitable Distribution (QCD).

Nella Webster O'Grady, CFP, is a long-time friend of Orange County United Way as a member of our Alexis de Tocqueville Society, President's Circle, and Women's Philanthropy Fund, and is also the Managing Director at Miracle Mile Advisors. As a financial planner and dedicated donor, she shared the following on how this new giving option offers tax benefits while helping our community:

"Many people have retirement accounts that have grown substantially over the past decade. Once you reach age 72 (70½ if you turned 70½ before January 1, 2020), you are required to take annual Required Minimum Distributions (RMDs) from your IRA and other retirement accounts. These RMDs are fully taxed at ordinary income tax rates.

If you don't currently need the income from your IRA to live on, it can become the perfect vehicle for accomplishing your charitable intents via a QCD. Each individual can gift up to a total of $100,000 in a year to qualified charities of your choosing and pay no taxes on those gifts. Done properly, a QCD can satisfy the IRS' Required Minimum Distribution obligation.

Many people leave gifts to Orange County United Way through their wills and trusts, or as a beneficiary of a life insurance policy. While those gifts will help the organization down the road, the QCD is a great way to make a current gift in a tax-efficient manner."

The QCD is a wonderful way to make a difference now, when the needs of our community are greater than ever. Please contact your CPA or financial advisor for more information on whether this is a good option for you.