by Alan Hill, Chair, UCG Board of Business

You can give to the United Church of Gainesville in several ways either to fulfill your annual pledge commitment or to support a specific need or program.

You can make a direct contribution of cash. We take checks and credit cards, too.
You can donate stocks or securities. We have an account with Merrill Lynch where stocks or securities can be held or sold with the proceeds invested in an interest-bearing account.
If you are 70 ½ years old, you can make a qualified charitable distribution (QCD) from an Individual Retirement Account or IRA.
You can set up a donor-advised fund to hold cash, securities, or appreciated assets, that you can then direct to make grants to charities, including UCG, of your choice.
You can remember UCG in your estate planning.

For all these options your giving can be to the regular annual church budget, to the church endowment, or be directed to a specific purpose or project, for example, the capital reserve. Before making a “directed” gift, please consult with your moderator, treasurer, and/or clergy to determine what are the greatest needs, so that your gift can have the greatest impact.

This is the first of a three-part series on paths 3 through 5.

QUALIFIED CHARITABLE DISTRIBUTION (QCD)

A Qualified Charitable Distribution (QCD) is a tool for individuals age 70½ or older to give directly from their Individual Retirement Account (IRA) to the United Church of Gainesville. QCDs allow you to donate up to $108,000 each year without counting the distribution as taxable income. This method of giving can satisfy your Required Minimum Distributions (RMDs), reduce your tax burden, and support UCG.

How Does a QCD Work?

A QCD is a direct transfer of funds from your IRA custodian to a qualified charity. The distribution is excluded from your taxable income, unlike regular IRA withdrawals. To qualify, you must:

Be at least 70½ years old at the time of the distribution
Make the distribution from a traditional IRA (not a 401(k) or other retirement plan)
Ensure the distribution goes directly to a qualified public charity (not a donor-advised fund, private foundation, or supporting organization)
Limit the QCD to $108,000 per year per individual ($115,000 in 2026)

Benefits of Using a QCD

Tax Savings: QCDs are not included in your adjusted gross income, which may help you avoid higher Medicare premiums and reduce the taxable portion of your Social Security benefits.
Satisfy RMDs: QCDs can count toward all or part of your annual RMD, required once you reach age 73 (as of 2025).
Simplified Charitable Giving: You don’t need to itemize deductions to benefit from a QCD, making it accessible even if you take the standard deduction.

Steps to Make a QCD

Contact your IRA custodian to request a direct transfer to United Church of Gainesville. Catherine Cake, Church Accountant, can provide you with the necessary information about the church, such as, its federal tax ID number.
Verify the charity is a qualified 501(c)(3) organization, which UCG is.
Obtain a written acknowledgment from the charity for your records. UCG should send you a record of all your contributions periodically.
Report the QCD on your federal income tax return. While the distribution is not taxable, you must still report it.

Important Considerations

QCDs cannot be made from employer-sponsored retirement plans like 401(k)s or 403(b)s.
Roth IRAs are eligible, but QCDs are generally more advantageous from traditional IRAs.
Consult your tax advisor to ensure your QCD is executed correctly and to maximize your tax benefits.

Frequently Asked Questions

Can my spouse and I each make a QCD? Yes. Each spouse can contribute up to $108,000 per year from their own IRAs. The maximum increases to $115,000 each in 2026.
Do I need to itemize deductions to benefit from a QCD? No. The distribution is excluded from taxable income, regardless of whether you itemize.
Can I make a QCD to multiple charities? Yes, if the total does not exceed $108,000 per individual per year. The total allowed increases to $115,000 in 2026.

What if I don’t have an IRA but do have an employer-sponsored retirement plan?

You can open a new IRA plan at any time.
While you can only contribute earned income to a retirement account, you can, if allowed by your current retirement plan, rollover funds to an IRA account.
Check with your existing retirement account to find out if a rollover is allowed.
If allowed, complete the paperwork to rollover or transfer funds from your current employer sponsored account to your IRA account.
You should take any required minimum distribution (RMD) from your existing retirement accounts before rolling any funds over.