What to Know About QCDs

If you're in or nearing retirement, you might be wondering how to make the most of your giving — especially if you're required to take withdrawals from your IRA that you don’t actually need. That's...

If you're in or nearing retirement, you might be wondering how to make the most of your giving — especially if you're required to take withdrawals from your IRA that you don’t actually need.

 

That's where a Qualified Charitable Distribution (QCD) comes in.

 

What is a QCD?

 

A Qualified Charitable Distribution allows individuals aged 70½ or older to give directly from their traditional IRA to a qualified public charity — up to $100,000 annually(indexed to inflation starting in 2024).

 

The QCD counts toward your Required Minimum Distribution (RMD) but does not count as taxable income. That means you get to give generously without increasing your Adjusted Gross Income (AGI) — and without needing to itemize.

 

It’s a simple, tax-smart way to support the causes you care about.

 

 

Who Can Use a QCD?

 

To make a QCD, you must:

 

  • Be 70½ or older at the time of the gift
  • Own a traditional (non-Roth) IRA
  • Direct the funds straight from your IRA to a qualified 501(c)(3) charity

 

Married couples filing jointly can each give up to the annual limit from their respective IRAs.

 

Why Consider a QCD?

 

Here’s how QCDs help you give smarter:

  • Reduces taxable income — unlike a typical IRA withdrawal
  • Fulfills your RMD — without needing to spend or reinvest the money
  • No need to itemize — the benefit applies whether or not you itemize

 

For retirees who want to give generously and preserve their tax efficiency, QCDs are a win-win.

 

Can I Make a QCD to My Donor-Advised Fund?

 

This is where clarity matters.

 

QCDs cannot be made to donor-advised funds (DAFs) under current IRS rules. That’s because DAFs allow the donor to retain advisory privileges over the use of funds — which disqualifies the gift from QCD treatment.

 

However, you can make a QCD to a public charity that sponsors a DAF (like GiveClear) to a Single Charity Fund.

 

If you're not sure what qualifies, we're here to help navigate the details.

 

How GiveClear Can Help

 

GiveClear is able to accept QCD contributions by offering a Single Charity Fund (SCF).

 

Have questions about QCDs or how to align your retirement assets with your charitable vision? Let’s talk.