As director of philanthropy at a leading global environmental nonprofit — and with many years of professional experience in estate and planned giving — I’ve had the opportunity to work closely with older adults and retirees who are thinking deeply about their legacy. In recent years, many of them have told me that they want to do more for the environment. They’ve seen the changes firsthand — hotter summers, shrinking snowpacks, more intense storms — and they want to be part of the solution.
This presents a meaningful opportunity for advisors. What many clients don’t realize is that one of the most powerful tools for environmental impact is already in their hands: their retirement assets. For advisors, this is a chance to add real value — by helping clients align their financial and legacy planning with the causes they care about most.
By guiding clients in leveraging qualified charitable distributions (QCDs) or naming nonprofits as beneficiaries of retirement accounts, advisors can deepen relationships, support client values and unlock significant philanthropic potential. In today’s values-driven landscape, these conversations aren’t just about tax planning — they’re about purpose.
For charitably inclined clients age 70½ and older, QCDs remain one of the most effective strategies for tax-efficient giving — particularly when aligned with values-driven philanthropy. By directing up to $100,000 annually from IRAs to qualified nonprofits, clients can reduce adjusted gross income (AGI), fulfill required minimum distribution (RMD) and support environmental causes without affecting cash flow.
A QCD is a direct transfer of funds from an IRA to a qualified 501(c)(3) nonprofit organization. These gifts count toward the donor’s RMD once they reach age 73, but do not count as taxable income — making them a uniquely advantageous way to give.
QCDs not only reduce AGI, but can also help manage Medicare premiums, lower the tax on Social Security benefits and minimize exposure to higher tax brackets. For donors who don’t itemize, QCDs offer a way to receive a tax benefit from charitable giving. Advisors often integrate QCDs into broader strategies that may include Roth conversions or estate planning.
Advisors Benefit, Too
As interest in climate and environmental giving grows, QCDs are becoming a go-to tool for clients seeking to align retirement assets with impact. Planners who proactively integrate these strategies not only add value but also differentiate their practice in a competitive advisory landscape. Introducing these strategies can deepen client trust and expand the scope of legacy planning conversations.
Here’s what your clients need to know about QCDs:
Eligibility: Must be age 70½ or older and use a traditional IRA.
Annual cap: Up to $100,000 per person in 2024 (indexed annually for inflation).
No itemization required: Even if the donor takes the standard deduction, they can still benefit. QCDs reduce AGI rather than offering a standard charitable deduction — making them valuable even for those who do not itemize.
IRS requirements: Funds must be transferred directly from the IRA to the nonprofit (not withdrawn first).
Required Minimum Distribution (RMD) Fulfillment: QCDs count toward the RMD for the year — helping clients meet IRS distribution rules without increasing taxable income.
Cleaner Tax Return: Since QCDs are excluded from income, the client’s 1040 is simplified and AGI appears lower — potentially qualifying them for more credits or deductions.
Why QCDs Are a Win-Win for Seniors and the Planet
For clients who are 70½ or older, QCDs offer a powerful, tax-smart way to support environmental causes while simultaneously advancing their financial goals. As a trusted advisor, you can explain to clients in an uncomplicated way that QCDs can benefit them by:
Reducing taxable income, which may lower Medicare premiums and minimize the taxability of Social Security benefits.
Fulfilling all or part of the RMD without additional tax burden.
Enabling impact without affecting cash flow — ideal for retirees managing fixed budgets
Easily aligning financial goals with philanthropic values.
Making giving more accessible to those who may not have the means to give in other ways.
Take Anne Schroder, a longtime 1% for the Planet supporter. She first reached out to us in 2022 to ask about giving through her IRA. Since then, she’s made significant QCD gifts every year. Her generosity helps our organization strengthen its global reach: For every dollar donated, $13 is unleashed for our environmental partners — amplifying efforts to restore ecosystems, protect wildlife and address the planet’s most urgent challenges. This has allowed Anne to create a legacy of environmental impact in a tax-efficient and values-aligned way.
Making the Case for Environmental Giving
Amid federal and private sector environmental rollbacks, individuals have a critical opportunity to help fill the growing gap in climate leadership. Now more than ever, personal commitment will help ensure that the planet remains a global priority.
Conservation, reforestation and climate resilience are among the many pressing solutions needed for a thriving future. Many clients are deeply motivated to make a difference, particularly when it comes to leaving a better world for their children and grandchildren. For these individuals, philanthropy is more than generosity — it’s a chance to align their giving with their values and create a legacy of environmental impact.
Organizations like 1% for the Planet make this alignment easier, connecting donors with vetted, high-impact environmental nonprofits around the world. And to support financial advisors in having these conversations, we’re developing a practical Environmental Giving Toolkit — complete with vetted resources, conversation starters, case studies and actionable next steps — to help clients translate their environmental values into real-world impact. [Charity Navigator lists and rates hundreds of charities that support climate change.]
As advisors, you have the power to guide clients toward choices that are both financially sound and deeply meaningful. By incorporating QCDs into your practice, you’re not just planning for the future — you’re helping shape a better one.
Susan W. Lane, CFRE, is director of philanthropy at 1% for the Planet, a global organization that mobilizes and certifies environmental giving, directing over $700 million to vetted environmental partners.
