Make an Impact with Your IRA
Your IRA can be a tax-savvy way to support The Philadelphia Orchestra or Ensemble Arts Philly now. A Qualified Charitable Distribution (QCD), also known as an “IRA Charitable Rollover,” allows you to make a tax-free gift to The Philadelphia Orchestra or Ensemble Arts Philly from your IRA while potentially satisfying your Required Minimum Distribution (RMD).
How to Qualify
To benefit from a QCD, please ensure that you meet these requirements:
- Age: You must be at least 70½ years old at the time of your gift.
- Direct Transfer: The funds must go directly from your IRA to The Philadelphia Orchestra or Ensemble Arts Philly.
- Annual Limit: For 2026, your total QCD gifts cannot exceed $111,000.
- Traditional or Inherited IRA: Your QCD gifts must be from a traditional or inherited IRA (inactive SIMPLE IRAs and inactive SEPs are also eligible).
What is a Required Minimum Distribution?
When you are age 73 or older, you must take a Required Minimum Distribution (RMD) from your IRA each year. You must include your RMD in your taxable income, which increases your income tax and may have other tax effects, such as increasing the cost of your Medicare insurance. The fraction of your IRA balance that you must withdraw increases each year.
Benefits of a Qualified Charitable Distribution
- Tax Advantages without Itemizing: Even if you do not itemize your deductions, a QCD offers benefits similar to an itemized income tax charitable deduction.
- Satisfy RMD Requirements: If you are 73 or older and required to take a Required Minimum Distribution (RMD) from your IRA, a QCD gift can satisfy your RMD without increasing your taxable income.
- Direct Your Impact: You may designate your gift toward a specific program or area of interest within The Philadelphia Orchestra or Ensemble Arts Philly.
- Immediate Impact: Your gift will make an immediate difference to The Philadelphia Orchestra or Ensemble Arts Philly.
How to Make a QCD to The Philadelphia Orchestra or Ensemble Arts Philly
- Contact Your IRA Administrator: Request a Qualified Charitable Distribution directly to The Philadelphia Orchestra or Ensemble Arts Philly. This ensures that your distribution is sent tax-free to us.
- Notify The Philadelphia Orchestra or Ensemble Arts Philly: Let us know about your QCD so we can follow up with your administrator if needed and thank you for your generosity.
Consult with Your Advisors
We encourage you to speak with your financial and tax advisors before making a gift. The IRS offers tax incentives for charitable giving, enabling you to support a cause you value while potentially reducing your tax burden.
Thank you for considering a generous gift to help sustain The Philadelphia Orchestra or Ensemble Arts Philly.
The purpose of these web pages is to provide general educational information. They are not intended as legal, accounting or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, obtain the services of appropriate advisers. Consult an attorney for advice if your plans require revision of a will or other legal document.