Good News for Charitable Donors Using Retirement Assets

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Qualified Charitable Distributions (QCDs) continue to become even more attractive for charitably minded retirees.

In 2026, individuals can direct up to $111,000 from an IRA to charity through a QCD, thanks to annual inflation adjustments. Congress has also expanded opportunities for certain one-time charitable gifts funded with retirement assets, creating additional flexibility for donors who want to support the Outer Banks while managing retirement income and tax obligations.

For many retirees, a QCD remains one of the most effective ways to satisfy all or part of a Required Minimum Distribution without increasing taxable income. Lower adjusted gross income may also help reduce Medicare premium surcharges and the taxation of Social Security benefits.

At the Outer Banks Community Foundation, QCDs can help you support the causes and organizations that matter most. For example, you can:

  • Support the Foundation’s Greater Outer Banks Fund, helping address emerging needs and opportunities throughout our community.
  • Create or contribute to a charitable fund focused on causes you care about, such as education, housing, environmental conservation, healthcare, youth development, or disaster response.
  • Strengthen an existing scholarship, field-of-interest, donor-advised, or designated fund that supports local students and nonprofits.

Looking ahead, Congress is considering legislation that would extend QCD treatment to certain employer-sponsored retirement plans, including 401(k)s, 403(b)s, and 457 plans. If enacted, the change would make charitable giving from retirement assets even simpler for many donors.

As you review your charitable plans this year, it may also be a good time to revisit retirement account beneficiary designations. Naming a fund at the Community Foundation as a beneficiary of an IRA is often one of the most tax-efficient ways to make a future charitable gift while supporting the Outer Banks for years to come.

We encourage you to consult your financial advisor, CPA, or attorney about whether a QCD or other charitable giving strategy may be right for you. The Outer Banks Community Foundation is always available to help explore charitable options that align with your goals.

For more information contact the OBCF staff at 252-423-3003.

About the Outer Banks Community Foundation: The Outer Banks Community Foundation is a 501(c)3 nonprofit organization committed to fostering philanthropy and supporting local causes. Through its charitable funds and grant programs, the Foundation strives to enrich the quality of life for residents of the Outer Banks.