Bill Smith is 72 years old and wants to make a gift to The Prep. He has $300,000 in his IRA and wants to gift $10,000. He can authorize the administrator of his IRA to distribute $10,000 to SHP. Because the IRA Qualified Charitable Distribution is excluded from income, Bill will not be eligible for a charitable income tax deduction — but he still receives tax savings. The $10,000 distributed to SHP will be counted toward his annual required minimum distribution (RMD) and he will not pay income tax on the portion given to The Prep!