Many retirees are disappointed to find out they will not deduct their charitable gifts for income tax purposes this year. That’s because the 2017 tax law sharply cut the number of filers who itemize by nearly doubling the standard deduction.

Just 8 percent of filers are expected to take a charitable deduction this year, down from 20 percent in the past, according to the Tax Policy Center in Washington, D.C.

But all is not lost for retirees with a charitable bent: Those over age 70½ can use a workaround that preserves the tax benefits of giving, even if they don’t itemize. In what’s called a qualified charitable distribution (QCD), retirees can donate all or a portion of their required minimum distributions (RMDs) from IRAs—up to $100,000 a year—directly to charity.

“The QCD comes right off the top of adjusted gross income, which is attractive from a tax planning perspective,” Peter P. DeVito, a partner with Cleveland-based Fairport Asset Management told Financial Advisor magazine. “With the loss of the charitable deduction, QCDs are becoming very popular now, predominantly with clients who don’t need all or part of their RMD income."

While retirees don’t get a write-off for their charitable gift QCD, they also don’t owe taxes on their retirement-account distributions they donate this way.

For a taxpayer in the 22 percent bracket, funneling a $5,000 RMD to a QCD saves $1,100 in federal income taxes, the same as if you’d been able to deduct it.

Even though this rule became a permanent part of the tax code in 2015, the 2017 tax law raising the standard deduction made it that much more attractive, DeVito said.

“We have clients who do it as little as a couple thousand dollars up to $100,000 in QCDs. I think you’ll see people using them more and more beginning this year,” he added.

A smaller tax bill is not the only potential benefit. By donating RMD, a retiree reduces their adjusted gross income, which can mean less of their Social Security is taxed and a potential reduction in Medicare premiums.

There's yet another tax-planning perk: “For states that don’t allow itemized deductions, retirees who use QCDs will also pay less in state taxes,” DeVito added.

To do a QCD, retirees must instruct the firm that manages their IRA to direct some or all of their RMD to one or more charities. The firm must send the money directly to the charity, or send the retiree a check made out to the charity, which then must be forwarded. The IRS prohibits taxpayers from collecting the money and then donating to the QCD.

The QCD donation must be made during the calendar year for which a retiree is filing a tax return.

“We have quite a few clients who are using QCDs,” said Tim Steffen, director of advanced planning at Milwaukee-based Baird Private Wealth Management.

But retirees must be careful to report QCD donations correctly on returns, which can be a bit of a filing headache that even confuses accountants, Steffen said.

That’s because the brokerage or fund company that holds your IRA will report it on Form 1099-R as a regular IRA distribution. The taxpayer has to note on their return that it’s a QCD and not taxable.

It is also up to the taxpayer, not the broker-dealer, to make sure a charity qualifies. For record keeping purposes it’s a good idea to get a letter from the charity documenting each gift, Steffen said.