Qualified Charitable Deductions (QCD)


The QCD permits the exclusion from income of up to $100,000 annually from a person’s IRA for distributions made directly to public charities, such as Cottonwood.

The QCD counts toward one’s required minimum distribution (RMD), thus avoiding paying income tax on the RMD and is not included in adjusted gross income. This may help lower one’s tax bracket, reduce the tax on Social Security payments, reduce Medicare premiums, and greatly benefit one who does not itemize deductions.

The QCD must be distributed directly from the IRA to the charity and specific rules must be followed.
Before making a QCD, you should consult your tax advisor to determine whether a gift of appreciated stock to Cottonwood might provide a greater tax advantage than using the QCD.

The needs of the many developmentally disabled persons to whom Cottonwood gives hope and meaningful lives continue.  You can help through the now-permanent tax rules permitting  persons over 70 ½ to direct a Qualified Charitable Distribution (QCD) to be made directly from their IRAs.

You can help shape the futures of those supported by Cottonwood. Making a QCD is one way to help.
Please contact Ettie Brightwell at (785) 842-0550 for more information.