“A Significant Charitable Giving Opportunity: Benefiting Your Church or Charity Now, in 2026”

No doubt you’ve heard that the median age of the U.S. population keeps going up.  It is currently estimated to be 39.  And yet the median age of those who attend church is much higher: 57.  My guess is that the median age of Lutheran congregations might even be pushing 60.

However, there are some definite advantages when it comes to church members who are in their late 50’s, 60’s, 70’s and beyond.  First of all, there is the matter of their faith maturity, which has “stood the test of time”.  And speaking of time, there is the amount of discretionary, volunteer time they often give to their church and community, especially when they are healthy enough to qualify as “active retired.”  Last, but not least, there is the matter of their financial stewardship and generosity.  Many are mature Christian disciples who are old enough and mature enough to realize that when it comes to their wealth, “they can’t take it with them”.

Perhaps you have heard of the “great wealth transfer.” This is the estimate that Baby Boomers and the Silent Generation will be leaving behind $84.4 trillion (that’s “trillion” with a “T”) in assets between now and 2045.  The great majority of this wealth will of course be left to children and grandchildren.  (And who am I to judge as to whether these heirs will spend their inheritance responsibly?)  But an estimated $12 trillion will be going to charitable organizations.

I have for many years been convinced that “delayed gratification” is a sign of emotional maturity and wisdom; while “immediate gratification” is often an indication of impulsivity and a lack of maturity.  However, current IRS law—in this year of 2026—offers an exciting opportunity to experience immediate gratification through a specific act of generosity.  This is possible due to Qualified Charitable Distributions (QCDs), which allow for nontaxable distributions by a direct transfer of funds from a traditional IRA, in 2026, to your church or charity. And this is definitely a giving opportunity that more church members need to hear about.  When it comes to an IRS provision that has been “under the radar,” this is it!  My wife and I only learned of this provision (and granted, she understood the details far sooner than I did) within the last two years.  But we have now started using Qualified Charitable Distributions as our primary way of giving offerings to our home congregation.

However, before getting into the details regarding QCDs, a caveat: I am not a tax professional, nor—as the saying goes— “have I even played one on television.” (To reference a very old TV commercial) So the following information is something you need to run by your own professional tax accountant, who will definitely know about QCDs.  (And in the unlikely event he/she has no idea what they are, you will need to find a new accountant.)  Also, your state of residence might make a difference in some of the details regarding QCDs, but your local tax professional will know if that is the case.  Furthermore, what I am about to share, while accurate for any contribution made in 2026, could possibly change next year.  After all, when it comes to tax law, it’s hard to predict what the US Congress might or might not do.  And one more caveat “up front”: Qualified Charitable Distributions can only be made by taxpayers who are seventy-and-a-half years of age or older.

Here is some additional introductory information about QCDs:

1. QCDs allow those who are seventy-and-a-half or older to transfer up to $111,000 in 2026 directly from an Individual Retirement Account (IRA) to an eligible charity.  (Churches, of course, are eligible charities.)  When this is done, up to 100% of your contribution can offset your IRA distribution for that year. 

2. Also, QCDs can go towards satisfying the Required Minimum Distributions (RMDs) that begin at the age of 73.  (Those RMDs would otherwise be added to your taxable income.)

3. QCDs cannot be made from ongoing employer-sponsored IRAs — like 401(k)s — but only from certain qualified Traditional IRAs.

4. While the maximum limit for a QCD donation, for an individual taxpayer, is $111,000 in 2026; for a couple filing jointly where each spouse makes distributions from their own IRA, the upper limit is $222,000.

5. This is important: The QCD must be a direct transfer from your IRA custodian to your charity of choice.  This amount will then, dollar-for-dollar, reduce your taxable income for that year.  For QCDs going to your congregation, you might want to notify your church treasurer or bookkeeper to be expecting this contribution.

6. If your retirement total income for 2026 is getting close to a higher income tax bracket, a large QCD donation can result in your remaining in your current tax bracket.  (Or, in rare cases, you might find yourself in a lower tax bracket due to a substantial QCD donation.)

QCDs present a relatively unique and exciting opportunity to make one or more substantial donations to your church this year.  And these contributions (again) will reduce your taxable income by the same dollar amount as your QCD donations.

Next step?  Contact your tax accountant to confirm the information above and then contact your IRA custodian regarding the contribution you would like to make.  For those of us who are already in this age category, it’s time we start considering the use of this QCD strategy to financially support the on-going mission of Christ’s church.  And don’t forget: “You can’t take it with you.”

Note: Lutheran CORE is a 501(c) (3) charity.