Paul no longer has an Arizona Tax Liability to redirect. However, he still can create scholarships for underserved students by donating from his IRA to the non-tax credit division, Changing Lives with Legacy.

For Paul and his wife, Catholic education is critically important to the community. Students need a quality education that is rooted in faith and values. Catholic schools are truly building the future of the Church.

 Paul is grateful for his Catholic elementary and high school education in Maine. His Catholic education prepared him for his education at the University of Maine, establishing the discipline he needed for his career in the military and as a laboratory scientist.

 Changing Lives with Legacy offers a variety of traditional donation and planned giving vehicles. Donors can support access to Catholic education well beyond the limits of tax credits. For Paul, the choice is clear—he decided to use his IRA to fund scholarships for underserved children.

By making Qualified Charitable Distributions (QCDs) directly from his IRA, Paul can fulfill his Required Minimum Distributions (RMDs) while also supporting a cause he deeply cares about.

What is an IRA Charitable Rollover or QCD?

An IRA Charitable Rollover, also known as a Qualified Charitable Distribution (QCD), is a powerful tool for individuals aged 70½ or older who want to support charitable causes, like Catholic Education Arizona, while meeting their Required Minimum Distributions (RMDs). It allows individuals to transfer up to $105,000 per year directly from their Individual Retirement Account (IRA) to a qualified charity like Catholic Education Arizona. The benefit of this strategy is that the transferred amount is excluded from the individual’s taxable income, which can lower their overall tax liability for the year.

Benefits of an IRA Charitable Rollover or QCD

  • Avoid taxes on transfers of up to $105,000 from your IRA to create scholarships
  • May satisfy your required minimum distribution (RMD) for the year
  • Reduce your taxable income, even if you do not itemize 
  • Make a gift that is not subject to the deduction limits on charitable gifts
  • Ensure that students have access to a Catholic education regardless of their families’ financial means

For donors like Paul, the IRA Charitable Rollover is an ideal way to support scholarships. Paul’s strategic approach to charitable giving exemplifies the flexibility and impact of Changing Lives with Legacy. Through his donations, Paul directly helps underserved families in Arizona to choose the best education for their child’s needs.

Are you an Arizona Corporate or Individual Tax Credit Contributor or a Changing Lives with Legacy Donor? We want to hear your story and know why you believe Catholic Education Arizona is valuable. Contact legacy@ceaz.org or (602) 218-6542 to tell us your story. 

Catholic Education Arizona does not provide tax, legal, or financial advice. Gift results may vary. Please consult your personal financial advisor for potential tax benefits/implications. Any donations or planned gifts to Changing Lives with Legacy are not dollar-for-dollar tax credits through the Arizona Private Education Tax Credit.