Consider Using Your IRA to Make Charitable Gifts

The following is a reprint of a JCF article, published in the February 4, 2026, issue of the Jewish Community Voice, titled, "Consider using your IRA to make charitable gifts":

With the start of the New Year, many individuals and families begin planning their philanthropy for the next 12 months. Though using cash to accomplish philanthropic goals can be top-of-mind, if you are at least 70 1/2 years old and own an individual retirement account (IRA), consider using this asset for your forthcoming charitable gifts to the Jewish Federation of Southern New Jersey (JFSNJ) and its family of agencies, or other IRS-qualified 501(c)(3) nonprofits.

When using an IRA to initiate a qualified charitable distribution (or “QCD,” also known as an IRA charitable rollover), an IRA owner can have their IRA broker send a donation directly to JFSNJ or their charity of choice without it counting as income first. By doing so, the donor avoids being liable for potential income taxes. This is a simple and smart way to give tzedakah compared to giving cash or taking IRA income first and then making a donation.

In addition, for those who are at least 73 years of age, a QCD can count towards the annual Required Minimum Distribution

(RMD) from the IRA, thus reducing the dollar amount that needs to be paid out from the account as income.

For 2026, up to $111,000 per person ($222,000 per married couple) can be donated using an IRA QCD.

Here are some do’s and don’ts for IRA QCDs:

• Do have your QCD go directly to any IRS-qualified 501(c)(3) charitable organization, such as the Jewish Federation of Southern New Jersey and its family of agencies.

• Don’t take the income first from the IRA and then make a donation, you can lose your QCD tax benefits.

• Do consider contributing your QCD to an endowment fund with the Jewish Community Foundation, Inc. to build a fund that will last for many future generations and create your legacy.

• Don’t attempt to send a QCD to a donor advised fund, as this is not allowed by IRS regulations.

• Do consult your trusted advisor to determine if this strategy works best for you.

• Don’t forget to plan ahead, as processing the QCD can take longer than donating via check or credit card.

For questions about donating via QCD, please contact Jewish Community Foundation Executive Director David Snyder at (856) 673-2571 or dsnyder@jfedsnj.org or visit jcfsnj.org/ira-rollover