The biggest giving season of the year is approaching. As taxpayers are making 2024 year-end giving plans, the IRS is reminding eligible senior citizens about an increased benefit for making qualified charitable donations from individual retirement accounts (IRAs).

While traditional IRA distributions are generally taxable, IRA owners age 70½ and older can elect to make a certain amount of tax-free charitable donations (known as qualified charitable distributions (QCDs)). While the limit has been $100,000 in recent years, in 2024 givers can claim up to $105,000 in QCDs. And, based on an inflation calculation, in 2025 the limit will increase again to $108,000.

Notably, claiming a QCD does not require itemizing taxes, but a donor still must obtain a written gift acknowledgement from any nonprofit they support. Moreover, IRA owners age 73 or older can count those QCDs toward their account’s annual required minimum distribution (RMD).

Most churches and ministries readily accept simple and immediate cash contributions at the end of the year. But is your organization pursuing special gifts like QCDs? Explore more through ECFA’s recently updated fundraising resource, “4 Steps to Help Attract Special Gifts for Your Ministry.”