You may have noticed that we mention the Qualified Charitable Distribution (QCD) often. There is a reason for that! The QCD is an elegant and effective planning tool that can work wonders for your organization and for your donors. Your donors who are required to take Required Minimum Distributions (RMDs) from their IRAs and other qualified plans still must do so even if the market is down, so don’t hesitate to raise this idea with a donor even when the stock market is making wild swings.
As a reminder, we may see even more good news about QCDs before 2022 is over. Proposed provisions of legislation known as SECURE 2.0 would enhance QCDs by indexing the $100,000 annual allowance for inflation and adding a provision for a one-time $50,000 distribution to a charitable remainder trust or other split-interest gift vehicle. SECURE 2.0 could pass through Congress by the end of the year.