QCD, or Qualified Charitable Distribution is an alternative way to give to a charity. Basically, it allows people who are older than 70 1/2 to direct their Required Minimum Distribution directly from their IRA to a charity.
QCDs have received renewed interest due to the higher standard deductions allowed for in the recently passed Tax Cuts and Jobs Act. It's estimated that millions of tax payers who formally itemized will no longer do so, meaning from a tax standpoint, they will not be benefiting from charitable contributions. A QCD is a possible solution. Normally any distribution from a traditional IRA is taxable, however the QCD passes to the charity directly and is not included in income. It is non-deductible, but once again many taxpayers will not be itemizing anyway.
If you are 70 1/2 and subject to Required Distributions from your IRA, you might want to talk to us about your QCD options.