Unrestricted giving, QCDs, and why they matter for your philanthropy

As someone who cares deeply about our community, you already understand how important charitable giving is to improving the quality of life. Every year, Americans give nearly 2% of our nation’s GDP to charitable causes—a remarkable level of generosity that supports more than a million nonprofits across the country. At the same time, trust has become one of the most important factors donors consider when deciding where to give. We are honored that so many of you place your confidence in Kitsap Community Foundation to steward your philanthropy with care and integrity.

For donors aged 70½ and older, one of the most effective and tax-savvy charitable giving tools available is the Qualified Charitable Distribution, or QCD. A QCD allows you to direct up to $108,000 in 2025 from your IRA to a qualified public charity—bypassing taxable income. If you are already taking required minimum distributions (RMDs), a QCD will count toward that amount without increasing your adjusted gross income, which can be especially helpful for managing tax brackets, Medicare IRMAA surcharges, and other income-related considerations.

QCDs cannot be directed to donor-advised funds. So, many donors choose to use their donor-advised fund to support their favorite charities through regular annual gifts, and then use their QCDs to support the unrestricted Community Catalyst Fund at KCF. An unrestricted fund enables KCF’s board and volunteers to deploy dollars toward the most pressing and emerging needs right here at home. It is one of the most powerful ways to support your community, both now and in the future.

Be sure to talk with your tax advisors about whether a QCD fits into your 2025 charitable giving plans. Looking ahead, with new tax laws taking effect in 2026, QCDs may become even more valuable, so be sure to discuss next year’s opportunities, too.

No matter which tools you use—your donor-advised fund, a QCD to the KCF Community Catalyst Fund, or other giving strategies—Kitsap Community Foundation is here to support you. Please reach out anytime. We are honored to partner with you to ensure your generosity continues to make a meaningful difference in the community we all love.