Are you thinking about taxes this time of year? If you are 70 ½ years of age or older, we thank you for considering a Qualified Charitable Distribution (“QCD”) donation to the IBMA Foundation.
In 2026, individuals who are 70½ years old or older can donate up to $111,000 annually per person to qualified 501(c)(3) charities using a QCD.
How QCDs work and benefit you
QCDs are tax-free distributions from IRAs.
QCDs count toward satisfying your annual required IRA minimum distributions (RMDs).
Making charitable donations by using a QCD may enable you to bypass the rule that limits tax-deductible charitable gifts to 60% of your adjusted gross income. Also, QCDs are excluded from taxable income, which means that federal capital gains taxes are not assessed on the distributions.
Married couples can each make QCDs from their own IRAs, for a total of up to $222,000.
Once you reach the Required Minimum Distribution (RMD) age (currently 73), the QCD can count towards satisfying your RMD for that year,
QCD limitations
QCDs are not eligible for donation to donor-advised fund sponsors, private foundations, or supporting organizations. (The IBMA Foundation is a public foundation and a qualified QCD charity.)
If you exceed the QCD limit, the excess amount is treated as a normal distribution and is subject to regular income taxes.
The money must go directly from your IRA custodian to a Qualified 501(c)(3) charity.
Recordkeeping
Donors should obtain a written acknowledgement from the charity that includes the contribution date, amount, and confirmation that no goods or services were received.
QCD donations (cash or stocks) to the IBMA Foundation have been extremely helpful in supporting our mission to support programs and initiatives that foster the growth of bluegrass music—the Project Grants and Arnold Shultz Fund Grants, Bluegrass in the Schools Mini-grants, Bill Breen Bluegrass Youth Education Grants, Fletcher Bright Memorial Grants for young musicians, the Terry Baucom Bluegrass Education Fund, eight college scholarships, the Bluegrass College Band Showcase at World of Bluegrass, educational videos like Stagecraft 101 and Discover Bluegrass, the Rosenberg bluegrass scholar award – everything we do!
Please contact Nancy Cardwell at info@bluegrassfoundation.org to discuss any questions you have about making a donation to the IBMA Foundation, and—of course—consult your own financial advisor for advice on what will work best for you. New IBMA Foundation executive director Cassie Wright will be your contact as of April 1, 2026, at cassie@bluegrassfoundation.org.
RETURN to the March 2026 issue of The Cornerstone.
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