A Qualified Charitable Distribution (QCD) allows individuals aged 70.5 or older to donate from their IRAs to charitable organizations and avoid ordinary income tax. This donation counts toward satisfying your RMD for the year and is not included in your taxable income, helping to lower your overall tax burden. Ask your financial institution to make this donation directly to a qualifying 501(c)(3) charity and it will not be included in your Adjusted Gross Income (AGI).