Every day, about 10,000 Baby Boomers reach retirement age. At 70½, these individuals become eligible to make Qualified Charitable Distributions (QCDs) from their traditional IRA accounts. For schools, this presents an incredible opportunity. QCD gifts are often larger than typical cash donations and represent a rapidly growing area of philanthropy. The good news? Attracting more QCDs doesn’t require significant additional effort from advancement teams. Schools that market QCDs just two to four times a year can see significant results.

For donors 70½ or older, IRA QCDs offer a tax-smart way to lower income and taxes from IRA withdrawals while making a meaningful impact on your school’s mission. It’s important to note that only direct transfers from traditional IRAs qualify—funds withdrawn by donors or contributions from 401(k), 403(b), or SEP plans are not eligible.

Benefits of an IRA QCD

• Avoid taxes on transfers of up to $105,000 from an IRA to your school
• Spouses may also make QCDs of up to $105,000
• Satisfy required minimum distributions (RMDs) for the year
• Reduce taxable income, even without itemizing deductions
• Make gifts that are not subject to deduction limits on charitable contributions
• Further your school’s mission and work

4 Marketing Tips to Get More IRA Charitable Rollover Gifts This Year

1. Survey Your Donor Base to Identify Prospects

To qualify for a QCD, donors must be over 70½ years old. Begin by identifying eligible constituents within your donor base. Here’s how:

• Alumni by Class Year: Focus on older alumni who may meet the age criteria.
• Constituent Data: If you have birthdates on file, use this information to segment your list.
• Surveys: For constituents without age information, send a survey asking if they’re over 70½ and interested in tax-free giving options. Respondents who answer positively are likely QCD prospects.

2. Create a Dedicated Page on Your Website for QCDs

Donors often visit your website for more information. Make it easy for them to understand QCDs by creating a dedicated page. Include:

• Clear explanations of Qualified Charitable Distributions
• Tax benefits associated with QCDs
• Step-by-step instructions for making a QCD
• Examples of other schools with well-designed QCD pages: Our Mother of Perpetual Help School, Kellenberg Memorial High School, Cathedral High School, and Notre Dame Academy

3. Market QCDs Two to Four Times Per Year

Consistent outreach is key to increasing QCDs. Here are some strategies:

• Fundraising Appeals: Mention QCDs as a giving option in all appeals targeting older donors. Use CRM tools to track clicks on QCD links to gather age data.
• Targeted Emails: Send focused emails defining QCDs, explaining eligibility, outlining tax benefits, and linking to your QCD donation page. Keep the message concise and impactful.

4. Solicit IRA QCD Donors at the Right Times

Timing is everything when it comes to QCD gifts. Choose the most impactful periods for outreach:

• Start of the Year: Engage donors who want to meet their RMDs early.
• Tax Season: Highlight tax-saving opportunities during tax preparation time.
• Year-End Giving: November 1st to December 10th is ideal for encouraging donors to meet their RMDs before December 31st.
• Anniversary Outreach: For past QCD donors, send reminders 6-8 weeks before the anniversary of their last gift.

Here is a sample email you can use before the end of the year!

MAXIMIZE YOUR IMPACT AND SAVE ON TAXES!

If you are 70½ or older, you can make a Qualified Charitable Distribution (QCD) gift up to $105,000 from your IRA to support our school.

Even better, this gift may qualify for your required minimum distribution (RMD).

To ensure your contribution benefits you this year, make your IRA QCD before December 31st. Contact your IRA administrator no later than December 15th or reach out to us for more information on how to make the IRA QCD work for you.

Don’t miss this fantastic opportunity to make a difference and reduce your tax liability. A heartfelt thank you to those who have recently made an IRA QCD gift to our school.