Maximize Your Impact with a Qualified Charitable Distribution (QCD)


If you are age 70½ or older and own an Individual Retirement Account (IRA), a Qualified Charitable Distribution (QCD) is one of the most tax-smart ways to support The NEO Fund.


What is a QCD?

A QCD  is a direct, tax-free transfer of funds from your eligible IRA to our qualified public charity.


Key Benefits

  • Tax-Free Donation The distribution is excluded from your taxable income. This is often more beneficial than taking a distribution and then claiming a deduction.
  • RMD Satisfaction If you are age 73 or older and must take a Required Minimum Distribution (RMD), the QCD counts toward fulfilling all or part of that annual requirement.
  • Annual Limit. You can donate up to $\$108,000$ per year (indexed for 2025). This limit is per individual.


How to Make a QCD to The NEO Fund

The process is simple, but it requires coordinating closely with your financial institution (IRA administrator).


Check Eligibility: Confirm you are at least age 70½ at the time the distribution is made.

  • Contact Your IRA Administrator: Call your IRA provider (bank, brokerage, etc.) and instruct them to initiate the distribution.
  • Ensure Direct Transfer: The check or electronic transfer must be made payable directly to The NEO Fund and sent to us. The money cannot pass through your personal bank account first.
  • Provide Donor Details: Ask your administrator to include your name and address with the gift so we can properly acknowledge and issue a receipt for your generous donation.


⚠️ Important Eligibility & Tax Notes


  • The NEO Fund is a qualified public charity (EIN 45-3581689) and is an eligible recipient for QCDs.
  • Crucial Exclusion: QCDs cannot be made to Donor-Advised Funds (DAFs) or private foundations under current tax law.
  • Your IRA administrator will send you a Form 1099-R showing the gross distribution, but you are responsible for reporting the non-taxable QCD amount on your own tax return (Form 1040).


🎧Learn More: Listen to Our Podcast


For an in-depth explanation of how QCDs work and the full range of benefits, be sure to listen to our dedicated podcast episode here!


Disclaimer: This information is for educational purposes only and is not tax or financial advice. Please consult with your tax advisor or financial professional to determine if a Qualified Charitable Distribution is appropriate for your personal financial situation.