Giving via a Qualified Charitable Distribution (QCD) is essentially a “direct transfer” that bypasses your personal bank account. This is the secret to its tax-saving power: because you never technically receive the money, it isn’t counted as taxable income.
- Verify Your Eligibility
- You must be 70½ or older at the time of the distribution.
- Your gift must come from a Traditional IRA, an Inherited IRA, or an inactive SEP/SIMPLE IRA. (Note: 401(k)s and 403(b)s do not qualify directly; they must first be rolled over into an IRA).
- Contact Your IRA Custodian
- Reach out to your financial institution (e.g., Fidelity, Schwab, Vanguard).
- Most custodians have a specific “QCD Request Form” or an online portal to facilitate the transfer.
- Crucial Step: The check must be made payable directly to RENEW Wisconsin. If the check is made out to you, it becomes taxable income and loses its QCD status.
- Set the Amount
- In 2026, you can contribute up to $111,000 per year.
- This amount counts toward your Required Minimum Distribution (RMD) if you are of age (73+), allowing you to satisfy your tax obligation while supporting clean energy.
- Send the Gift
- Your custodian can mail the check directly to us or send it to you to forward to our office.
- Our Mailing Address: 214 N Hamilton St #300, Madison, WI 53703
- Keep Your Receipt for Tax Season
- RENEW Wisconsin will provide a written acknowledgment of your gift.
- When you file your taxes, your custodian will issue a Form 1099-R. (New for 2026: Look for Code Y in Box 7, which helps identify the gift as a QCD).
You (or your CPA) will report the total distribution on your Form 1040, but enter $0 as the taxable amount for the portion gifted.
Pro Tip: Start the process by early December to ensure the funds are cleared by the year-end deadline!