Are you age 70 and a half or older? Do you have an IRA (or more than one)? If you answer both questions yes, and are planning to make a charitable gift this year, then you should consider making a qualified charitable distribution, or QCD, from one or more of your IRA accounts. Your favorite charity will benefit, and you will save federal income taxes.
The tax laws regarding QCDs were made permanent at the end of 2015, and permit an individual to contribute up to $100,000 per year to a qualified charity by means of a direct transfer of funds from an IRA to the charity. (You cannot take a distribution from your IRA and then make the donation.) By doing so, you will avoid federal income tax on the transferred funds, as well as potential limitations on your charitable deduction. If you are required to take minimum distributions from your IRA, a QCD can satisfy this obligation.
In order to make a QCD, you must carefully comply with the rules; consultation with your personal tax advisor, your IRA custodian, and the intended charity will help ensure compliance.