How to Give Smarter in Retirement: Using QCDs to Support Woodstock Arts

If you’re 70½ or older and have an IRA, there’s a way to support causes you care about and lower your tax bill at the same time. It’s called a Qualified Charitable Distribution (QCD)—and if you haven’t considered using one to give back, it might be time to take a closer look.

For many retirees, Required Minimum Distributions (RMDs) can create an unexpected tax burden. Even if you don’t need the full amount for living expenses, you still have to take the distribution—and pay taxes on it. But a QCD lets you send part (or all) of your RMD directly to a charity, skipping the tax bill entirely. It’s one of the most efficient ways to give, and it could be the perfect way to support Woodstock Arts while keeping more of your money working for you.

What Exactly Is a QCD?

A Qualified Charitable Distribution is a direct transfer from your Traditional IRA or Beneficiary Roth IRA to a 501(c)(3) nonprofit—like Woodstock Arts. Instead of taking the money yourself (and paying income tax on it), the funds go straight to the charity.

This does two important things:

✅ Satisfies your Required Minimum Distribution (RMD) for the year
✅ Reduces your taxable income—which can help lower your Medicare premiums and even reduce how much of your Social Security is taxed

For 2025, the maximum QCD amount is $108,000 per person ($216,000 for couples filing jointly). That’s a big opportunity to make an impact while keeping more of your hard-earned savings.

Why a QCD Might Be a Smart Move

Most retirees have a Traditional IRA, meaning they’ll eventually have to take RMDs (starting at age 73) and pay taxes on them. If you don’t need that full amount for expenses, those distributions can push you into a higher tax bracket—raising your income tax, Medicare premiums, and possibly even Social Security taxes.

But a QCD removes that income from your tax return entirely. Instead of paying the IRS, you’re putting your money toward something meaningful.

Plus, because QCDs don’t count as taxable income, they often provide a better tax benefit than writing a check to charity (which you’d have to itemize to deduct). Even if you don’t itemize, you still get the tax benefit of a QCD.

Who Can Use a QCD?

To take advantage of this strategy, you need to meet a few basic requirements:

✔️ You must be at least 70½ years old when making the donation
✔️ The funds must come from a Traditional IRA (or a Beneficiary Roth IRA if you’ve inherited one)
✔️ The distribution must go directly to a qualified charity—it can’t pass through your hands first
✔️ QCDs don’t count as a charitable deduction—but they do lower your taxable income

One key restriction: QCDs can’t come from an active SEP or SIMPLE IRA (only traditional IRAs and inherited Roth IRAs qualify).

How to Use a QCD to Support Woodstock Arts

Want to support local arts and make a tax-savvy move at the same time? Here’s how to use a QCD to give to Woodstock Arts:

1️⃣ Contact your IRA custodian—Let them know you’d like to make a Qualified Charitable Distribution and provide Woodstock Arts’ information.

2️⃣ Use check-writing privileges (if available)—Some IRA providers let you write checks directly from your IRA. If so, you can make the check out to Woodstock Arts and send it yourself.

3️⃣ Confirm receipt—Once your QCD is complete, request an acknowledgment letter from the charity for your records.

💡 Pro Tip: Even though the check must be made payable to the charity, you can have it mailed to you first. That way, you can personally deliver it and ensure you get a donation receipt.

Making Your Giving More Impactful

Supporting Woodstock Arts with a QCD is more than just a smart tax move—it’s a way to invest in creativity, education, and community programs that make a real difference. Whether it’s inspiring young artists, bringing new performances to the stage, or creating a space for storytelling, your generosity helps make it all possible.

If you’re considering a QCD but want to make sure it fits into your overall financial plan, I am happy to walk you through the details.

📩 Have questions? Reach out today to explore how a QCD could benefit both you and the causes you care about.

Melissa Moss, CFP^®
melissa@melissamoss.co
770-608-7054