7 Smart Charitable Giving Moves for Retirees (Including QCDs)

Written By John Boyer

If you’re already giving to causes you care about, thoughtful planning can help those gifts make an even bigger impact. Strategic charitable giving isn’t just generous—it’s smart. By choosing the right methods and timing, you can support organizations you value while reducing taxes, avoiding capital gains, and aligning your giving with your long-term financial plan.

Below are seven smart strategies retirees often use, including when a Qualified Charitable Distribution (QCD) can be a powerful tool.

1. Use Qualified Charitable Distributions (QCDs) After Age 70½

What it is:
A direct transfer from your IRA to a 501(c)(3) public charity.

Why it matters:
QCDs don’t count as taxable income and can satisfy your RMD once you reach RMD age.

Practical tip:
Your custodian must send the funds straight to the charity. QCDs cannot go to donor-advised funds, supporting organizations, or private foundations.

**2. “Bunch” Deductions in Years You Itemize

If you switch between the standard deduction and itemizing, consider “doubling up” your gifts in one tax year. This helps you exceed the itemizing threshold—often paired with a donor-advised fund (DAF).

Works especially well for:

  • Retirees with fluctuating income

  • Years with larger taxable events (Roth conversions, asset sales)

3. Donate Appreciated Investments Instead of Cash

Why it works:

  • Avoid capital gains

  • Deduct the full fair market value if itemizing

Tip:
Many charities accept transfers through their brokerage. Ask for their DTC and account number.

Advanced strategy:
If you want to keep holding the investment, consider:
Give the appreciated shares → Buy back the same investment with cash
This resets your cost basis without realizing gains.

4. Coordinate QCDs With Roth Conversions and IRMAA Thresholds

Lowering your AGI with QCDs can help you:

  • Manage your tax brackets

  • Reduce the chance of Medicare IRMAA surcharges

  • Limit exposure to Net Investment Income Tax

Tip:
Estimate your AGI before year-end. Execute QCDs early, then determine how much room remains for Roth conversions.

5. Use a Donor-Advised Fund (DAF) for Non-QCD Giving

QCDs can’t go to DAFs, but DAFs are excellent for appreciated securities and bunching strategies.

Benefits:

  • One consolidated tax receipt

  • Assets stay invested for potential growth

  • Flexible grant timing

  • A simple way to involve family in long-term giving

6. Use Appreciated Stock for Capital Campaigns or Large Gifts

Many nonprofits run major campaigns where appreciated stock can deliver far more impact than cash.

Pro move:
Contact the charity’s development office first. Confirm they accept stock gifts and can provide acknowledgment language that meets IRS standards.

7. Consider Legacy Tools Like CRTs and Private Foundations

Some donors use Charitable Remainder Trusts (CRTs) or private foundations to create a long-term giving strategy.

These tools can:

  • Reduce estate and capital gains taxes

  • Provide income during retirement

  • Support multi-generational philanthropy

They require planning, but can be powerful when matched to your goals.

Real-Life Scenarios

Seeing these strategies in action makes them easier to understand. Here are a few ways retirees often use charitable giving to reduce taxes and support meaningful causes:

Scenario 1: Lowering AGI With a Partial QCD
A retiree with a $24,000 RMD gives $10,000 to charity through a QCD.
→ $10,000 of the RMD avoids taxable income.

Scenario 2: Staying Below an IRMAA Threshold
A $5,000 QCD instead of a $5,000 cash gift keeps a donor under a Medicare IRMAA bracket.

Scenario 3: Using Appreciated Stock to Avoid Capital Gains
A couple fund a capital campaign using long-held stock, avoiding capital gains and deducting fair market value.

Scenario 4: Using a CRT to Create Retirement Income
A business owner donates investment property to a CRT.
→ Avoids immediate capital gains, receives partial deduction, enjoys income for life, and leaves a charitable legacy.

Year-End Timeline (Quick Guide)

Early Nov – Dec 10

  • Confirm charity eligibility

  • Gather EIN, address, and brokerage details

  • Review custodian deadlines

Dec 10–15

  • Submit QCD requests

  • Confirm processing with your custodian

By Dec 20

  • Verify the charity received the gift

  • Request acknowledgment letter

Dec 31

  • Final deadline for QCDs to count this year

Common Pitfalls to Avoid

  • Sending a QCD to a DAF or private foundation

  • Taking the distribution personally, then gifting it later

  • Missing year-end custodian deadlines

  • Allowing the charity to apply the gift toward event tickets, dinners, or sponsorships (disqualifies QCD status)

Every person’s charitable journey is unique. Your goals, your values, and your financial picture deserve a strategy that supports both your generosity and your long-term plan. Whether you use QCDs, appreciated securities, DAFs, or legacy tools like CRTs, smart giving helps you do more good with the resources you already have. If you’d like help building a plan that aligns with your heart and your finances, we’d be glad to walk through your options with you.

John Boyer
Next

How Qualified Charitable Distributions (QCDs) Can Cut Taxes and Satisfy Your RMD