If you are 73 or older and writing checks to charity from your checking account, you may be volunteering for a bigger tax bill than necessary.
A qualified charitable distribution, or QCD, lets you send money straight from an IRA to a nonprofit.
The transfer never touches your hands, which is exactly why the IRS treats it differently than a normal withdrawal.
Once you turn 70½, you can direct up to $108,000 per year (2025 limit, indexed annually) from a traditional or Roth IRA to a qualified charity.
The amount counts toward your required minimum distribution, which starts at 73 for most people.
You do not report the transfer as income, so it never lands on your 1040.
That single feature separates a QCD from the standard deduction game.
If you take the money out first and donate it, you can only deduct it if you itemize, and the standard deduction is now high enough that most retirees do not.
The money leaves the IRA, arrives at the charity, and the IRS never counts it as yours.
There is one trap that catches people every year.
The check must go directly from the IRA custodian to the charity.
If the check is made out to you, even if you hand it over the same day, it is a taxable withdrawal.
Ask your custodian for the exact paperwork and confirm the charity's legal name before anything is sent.
Another detail worth knowing: a QCD can satisfy your required minimum distribution for the year.
For retirees who do not need the RMD cash, this is often the cleanest way to handle it.
You avoid the income bump, which can also protect you from higher Medicare premiums and taxation on Social Security benefits.
Donor-advised funds, private foundations, and most supporting organizations are off the list.
Churches and public charities are generally fine.
Keep the receipt from the charity showing the date and amount, and keep the custodian statement.
You will not get a 1099 for the transfer, so your own records are the proof.
The move tends to make the most sense for people who give consistently and already take the standard deduction.
If you itemize large deductions and your bracket is low, the math may be less dramatic.
Run your own numbers or ask a tax professional before restructuring your giving.
A few practical steps if you want to try it this year.
Contact your IRA custodian, request a QCD form, and confirm the deadline is the date the charity receives the funds, not the date you mail the form.
Start early in December, because custodians get buried and charities close their books at odd times.
One more wrinkle: the $108,000 limit is per person, not per household.
A married couple with separate IRAs can each give that amount, which doubles the ceiling to $216,000.
That is a meaningful number for retirees with large IRAs and a strong charitable streak.
If you are charitably inclined and sitting on a traditional IRA, the direct transfer is usually better than writing a personal check, and it costs you nothing extra to set up.
Final Thoughts
The only real requirement is a little paperwork and a phone call to your custodian before the calendar runs out.