Maximize Your Giving with a Qualified Charitable Distribution (QCD)


If you are age 70½ or older and have an Individual Retirement Account (IRA), a Qualified Charitable Distribution can be one of the most efficient ways to support The NEO Fund.


What is a QCD?

A QCD  is a direct, tax-free transfer from an eligible IRA to a qualified public charity such as The NEO Fund.


Key Benefits

  • Tax-Free Giving The transferred amount is generally excluded from taxable income, which can be more favorable than taking a distribution personally and donating afterward.
  • RMD Satisfaction If you are age 73 or older and must take a Required Minimum Distribution (RMD), a QCD can count toward all or part of that annual requirement.
  • Annual Limit. Each eligible individual can contribute up to $108,000 per year under the 2025 indexed limit.


How to Make a QCD to The NEO Fund

The process is fairly straightforward, but it does require coordination with your IRA administrator.


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

  • Contact Your IRA Administrator: Reach out to your IRA provider and ask them to begin the transfer.
  • Ensure Direct Transfer: The check or electronic payment must be made directly to The NEO Fund. The funds should not pass through your personal bank account first.
  • Provide Donor Details: Ask your administrator to include your name and address so we can properly acknowledge the gift and issue a receipt.


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.