Harnessing the Power of Qualified Charitable Distributions: A Gift for Nature Conservation

By Megan M. Lewis, JD, LLM in Taxation

As stewards of the land, we are constantly exploring innovative ways to preserve the beauty and biodiversity of our natural spaces. One unique and impactful method for supporting Inland Northwest Land Conservancy that not only benefits the environment but also provides you with financial advantages is a Qualified Charitable Distribution (QCD).

Qualified Charitable Distributions are distributions made by people aged 70½ or older from their Individual Retirement Accounts (IRAs) directly to eligible non-profit organizations, such as Inland Northwest Land Conservancy. This method presents a win-win scenario, offering advantages for both donors and land conservancy efforts.

Making a QCD to Inland Northwest Land Conservancy is a powerful way to support its mission of protecting natural habitats. Your generous contributions directly contribute to the acquisition, legal protection, and stewardship of critical lands, ensuring they remain untouched by development and are safeguarded for generations to come.

Moreover, QCDs come with significant financial benefits for donors. Typically, when you make a distribution from your IRA to your bank account, that amount is treated as income and taxed accordingly. Distributions from IRAs are required starting when you turn 73 years old, even if you don’t need to use the distribution for your support yet.

However, when you make a qualified charitable
distribution, the amount is excluded from your taxable income, reducing your overall tax liability, and potentially decreasing your tax bracket. In 2024, you may give up to $105,000 to a qualified charity using a QCD. This tax-efficient strategy allows you to maximize the impact of your contribution, enabling you to give more while potentially lowering your tax burden. It’s a thoughtful and strategic way to align your philanthropic goals with your financial planning.

To explore the possibility of making a Qualified Charitable Distribution to Inland Northwest Land Conservancy or including it in other estate planning tools, I encourage you to consult with your financial advisor, IRA administrator, and estate planning attorney.

About the Author: Megan M. Lewis of Megan Lewis Law, PLLC has practiced estate planning, probate,
business and tax law for over 15 years. She graduated from Gonzaga University School of Law and earned an advanced degree in tax law from the University of Washington. She serves clients across Washington State and often works virtually while sailing the world. For estate planning assistance, she can be reached through her website at www.meganlewislaw.com