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A Way to Give Back Without the Tax Burden

For many people, supporting causes we care about is important, but so is careful financial planning. For folks age 73 and older who have an Individual Retirement Account (IRA), they must take Required Minimum Distributions (RMDs). But these mandatory distributions increase taxable income and can affect both social security taxation and Medicare calculations.

There’s a solution that enables individuals to support organizations such as All Hands Ecology, while helping to minimize the negative financial impact of RMDs. It’s called the IRA Qualified Charitable Distribution (QCD).

Donors making QCDs report that it’s a great way to reduce a retiree’s taxable income. Unlike cash donations, which often can’t be deducted given today’s tax rules, QCDs lower the taxable portion of their Required Minimum Distribution by 100% of the donated amount. And they won’t have an adverse impact on disposable income.

The Problem: Taxable RMDs and Limited Deductions for Retirees

Today’s tax rules highlight a common issue: most retired people who take an RMD don’t itemize, which limits their ability to deduct charitable contributions. Because RMDs are taxable, they contribute to taxable income that can, if large enough, move IRA owners into higher tax brackets.

Traditional donations from after-tax assets, like cash or a money market account, don’t have the same impact on reducing taxable income. This makes it challenging for retirees to contribute to the causes they love without a tax burden.

The Solution: IRA Qualified Charitable Distributions

With an IRA QCD, donors can transfer up to $108,000 in 2025 directly from their IRA to a nonprofit organization like All Hands Ecology without including the distribution in their taxable income. This tax-smart giving strategy helps donors of RMD age meet their philanthropic goals and fulfill RMD requirements while reducing their taxable income.

Each and every QCD contribution provides essential support for the mission of All Hands Ecology.

A Simple Way to Give

Making an IRA Qualified Charitable Distribution is straightforward.

1. Contact your IRA trustee: Inform them of your wish to make a Qualified Charitable Distribution to All Hands Ecology for the 2025 tax year.
2. Provide All Hands Ecology’s details including tax ID number (94-6069140). Instruct your IRA trustee to send and complete your QCD by December 31, 2025.
3. Verify receipt: Confirm with us that your QCD was received to ensure proper records.

The Result: Connecting nature, people, and science for a more resilient world

By choosing a tax-smart IRA QCD, you can support our mission and vision … a world where the diversity of life thrives, and nature benefits all.

Have questions? Contact Director of Philanthropy Jen Newman at 415-868-9244 Ext. 119 or jnewman@allhandsecology.org.