Use a qualified charitable distribution (QCD) to fund a charitable gift annuity (CGA)

The SECURE 2.0 Act now allows a qualified charitable distribution from an IRA to fund a charitable gift annuity. This gives donors 70½ and older a new way to combine IRA giving with lifetime income.

Each IRA owner can direct up to $55,000 this way, though the limit adjusts for inflation over time.

• Funds a CGA in a single tax year, with payments for the donor’s life or their spouse’s
• Payout rates set by the American Council on Gift Annuities, which rose in 2024
• Counts toward the donor’s required minimum distribution for the year
• Remainder eventually flows into a Giving Fund or Single-Charity Fund at NCF

The example shows Elaine, age 75, funding a CGA with $55,000 and receiving $3,850 a year at a 7% rate. Getting started involves contacting NCF’s CGA team for an illustration, having the IRA custodian send a check directly to NCF, and working with a tax preparer to report the QCD correctly on Form 1040.