By using a Qualified Charitable Distribution (QCD), Carole Cox transformed a financial decision about her Required Minimum Distribution (RMD) into philanthropy—supporting our Match Magic campaign and causes she cares about while also keeping her RMD out of her income and enjoying the resulting tax advantages. Curious to learn how?
Like many retirees, Carole Cox—a longtime Cobb resident and CCF board member—faced the decision of how to manage her Required Minimum Distribution (RMD). The IRS mandates these annual withdrawals from traditional IRAs and other retirement plans starting at age 73, taxing them as ordinary income and potentially triggering numerous other tax consequences. Due to an unexpected retirement package, Carole didn’t need the extra income last year and sought a way to minimize her tax burden.
That’s when she turned to a Qualified Charitable Distribution (QCD), allowing her to use her Required Minimum Distribution for philanthropy instead of bringing it into her income. Carole’s QCD funded a $25,000 contribution to Cobb Community Foundation’s Match Magic match pool, helping create a $100,000+ fund that supplemented the $700,000 raised during the campaign by 25 nonprofits in Cobb. She also supported other nonprofits she cares about, many of which participated in Match Magic 2024.
“Honestly, this was a no-brainer, and CCF made it easy,” says Carol. “This was a once-in-a-lifetime opportunity for me to give so much at one time, and it sure felt good.” Carole’s story is a powerful reminder that a QCD isn’t just a smart financial move—it’s a way to make a meaningful difference. If you’re 73 or older and required to take IRA distributions, consider how a QCD can help you turn a tax obligation into a giving opportunity. Want to learn more? Let’s talk about how you can make your giving go further.
QCDs are a Smart Way to Give
According to Terri Munro, Partner and Wealth Advisor at Waverly Advisors, charitably minded taxpayers over age 70 ½ can use a QCD to meet their giving goals much more efficiently than taking their Required Minimum Distribution (RMD) and donating cash. She says, “A QCD reduces your AGI, which can boost deductions and credits, lower your tax bill, qualify you for reduced Medicare premiums, and decrease the taxable portion of Social Security benefits.”
Rick Bennett, CCF Board Member and Founding Partner of Bennett Thrasher, Atlanta’s 6th largest accounting firm, agrees. “Higher income taxpayers also benefit from a QCD. It lowers AGI and its related tax impacts. In short, you pay less in taxes while your chosen charity receives the full benefit.”
