A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than an SEP or SIMPLE IRA, to certain qualified organizations. You must have been at least age 70 1/2 when the distribution was made. Your total QCDs for the year can't be more than $100,000.
Making a qualified charitable distribution WILL affect your taxable distributions, as the amount is not considered taxable. For example, if you have $50,000 of IRA withdrawals, generally speaking all $50,000 is considered income (unless you have non-deductible contributions in your IRA account). However, if part of that $50,000 was a Qualified Charitable Distribution, say in the amount of $30,000, then only $20,000 of your IRA distributions are income to you.
Until you reach that age, though, there is no other way to get a tax benefit from charitable contributions, other than taking itemized deductions if higher than your standard deduction. One option that some people use, especially if they are close to the standard deduction amount, is to double up on charitable contributions in one year, then don't give any in the subsequent year, therefore taking the higher itemized deduction in the year you give double and then reverting to the standard deduction in the year when you reduce the giving.
Another option that can be successful for longer term giving is to consider creating a Charitable Giving Fund. The fund can be funded all in one year, giving the tax deduction that year, but distributions from the fund to eligible charitable organizations can be done over a span of many years.
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