Consult your tax advisor on this one.  If you're taking your MRD out before year end and thinking of gifting to charity, the IRS will provide a tax break for "qualified charitable distributions" (QCD).  This will expire December 31st.  WSJ.com explains charitable contributions from IRA accounts.

Here's a look at the rules and how you can benefit:

To be eligible, you must be at least 70½ years old on the date the money is transferred. You are allowed to donate as much as $100,000 to a charity (or charities).

You won't be taxed on the distribution, and the money you donate counts toward the required minimum distribution that IRA holders in this age group must withdraw from their accounts each year.

The distribution must be made to a "qualified" nonprofit group; a donor-advised fund, for instance, doesn't count. The money must come from an IRA; 401(k)s and SIMPLE and SEP plans aren't eligible.

Your IRA custodian must send the funds directly to the charity. (You can't withdraw the money yourself and write a check.) You can't take a tax deduction for the donation -- but again, you won't be taxed on the withdrawal.