How to turn retirement savings into climate action
Seniors, we know you care deeply about the world you’re leaving behind. Your desire to protect the planet for your grandchildren echoes 1% for the Planet’s mission to ensure our planet and future generations can thrive.
When thinking about legacies, environmental causes often rise to the top—but what you may not realize is that there’s a simple, tax-smart way to turn retirement savings into meaningful climate action.
“For people over 70½, a Qualified Charitable Distribution, or QCD, can be a powerful tool,” Susan Lane, Director of Philanthropy at 1% for the Planet, recently wrote in Rethinking65. “It’s one of the most overlooked and underutilized options for tax-free charitable giving—and it’s a great way to support environmental organizations doing urgent work.”
Whether you’re passionate about reforestation, clean water or habitat conservation, QCDs offer a way to invest in a healthier planet without affecting your cash flow.
What is a Qualified Charitable Distribution (QCD)?
A QCD allows individuals aged 70½ or older to donate directly from their IRA to a qualified nonprofit organization—like 1% for the Planet—without counting the distribution as taxable income. For those who are 73 or older, these distributions can also count toward your Required Minimum Distributions (RMDs).
This means you can reduce your taxable income while directly funding causes you care about. Unlike traditional charitable donations made from checking or savings accounts, QCDs avoid having the gift counted as income entirely.
Why QCDs are a win-win for seniors and the planet
QCDs are one of the most effective tools available for climate change philanthropy for seniors. Here's why:
- They reduce your taxable income, which may help lower your Medicare premiums and the portion of Social Security income that’s taxed.
- They don’t impact your cash flow, since the gift is made from existing IRA assets.
- They allow you to make a meaningful gift that supports a healthy planet for future generations.
As Susan explains in her Rethinking65 article, “A QCD is more than a tax strategy—it’s a way to connect your financial decisions to your values.”
1% for the Planet gets thousands of businesses to fund on-the-ground environmental work through our vetted environmental partners. To do that—and to grow this powerful global movement—we rely on donors like you. Your gift fuels the work that makes it all possible.
Donating to 1% for the Planet helps us onboard new business members, certify their giving to vetted environmental partners and strengthen the entire network’s impact.
Every dollar donated to us unleashes $13 in impact across our network—amplifying efforts to restore ecosystems, protect wildlife and address the planet’s most urgent challenges.
How to make a QCD to 1% for the Planet
Making a QCD to 1% for the Planet is easy. Here’s how to get started:
- Confirm eligibility. You must be 70½ or older to make a QCD. (If you're 73 or older, your QCD can count toward your RMD.)
- Work with your IRA custodian. Request a direct transfer from your IRA to 1% for the Planet. QCDs must be made directly from the IRA to the nonprofit—if you withdraw the money first, it becomes taxable.
- Use this info for your provider:
- Legal name: 1% for the Planet Inc.
- EIN: 91-2151932
- Mailing address: 50 Lakeside Ave, Burlington, VT 05401
For more guidance on supporting 1% for the Planet through a QCD, reach out to Susan at susan@onepercentfortheplanet.org.
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