Shirley and Bud Mingledorff '64

Shirley and Bud Mingledorff '64, longtime supporters of Savannah Country Day School, recently discovered an effective way to maximize their charitable contributions through Qualified Charitable Distributions (QCDs). He shares his insights to inspire other alumni and supporters to consider this tax-efficient method of giving.

"Distributions from retirement funds are typically taxed as ordinary income," Bud begins. "However, QCDs are a unique exception. These distributions are not taxed at all, making them an incredibly attractive option for charitable giving."

Bud highlights the financial benefits of QCDs: "Designated Charitable Distributions are fully deductible, just like regular donations. The key difference is that you're using funds from a tax-sheltered retirement account, avoiding income tax on the withdrawal. Additionally, the gift remains 100% deductible."

He notes some limitations: "The allowable distribution is capped at $111,000 per year, adjusted for inflation. Despite this cap, the big advantage is clear: the cash comes from a tax shelter and is fully deductible as a donation. There's no income tax on the withdrawal, and the deduction stays intact."

Bud mentions one important requirement: "The only catch is that you have to be old enough to take a distribution without facing an early withdrawal penalty. This rule ensures that only eligible individuals can benefit from this tax-efficient giving strategy."