Essentials You Should Know:
The President signed the 2023 CAA on December 29. The act is enormous (at an estimated value $1.7 trillion, it’s equivalent to ~7% of the United States’ total 2022 GDP) and impacts philanthropy in the following ways:
- An IRA qualified charitable distribution (“QCD”) can now be used to fund a life-income gift (e.g. a charitable gift annuity or charitable remainder trust) under specific, limited circumstances.
- QCD annual limits are now tied to inflation.
- The IRA required minimum distribution ("RMD") age is now 73, but the qualifying age to make QCDs remains 70½.
You can find the full details for each of these updates along with a breakdown of what it means for your work in a new, internally-facing reference sheet (located on UIFOnline at “Gift Planning -> Gift Planning -> GIFT OFFICER/UNIT RESOURCES”) developed by the UIF Office of Gift Planning and Trust Services (“GPTS”). As always, please contact your gift planning liaison or GPTS (217.244.0473 or email@example.com) for more information.