How to Make a Charitable Gift From Your IRA

Each year, you can make a tax-free charitable gift from your IRA known as a qualified charitable distribution (QCD). These distributions allow you to meet your annual required minimum distribution without paying taxes on that amount. To do so, you must transfer the assets from your IRA to the charity directly. The amount you can give each year is capped, with a $111,000 limit in 2026. ¹ This is what you need to know.

A financial advisor can help you find tax-efficient ways to support favorite causes.

What Is a Qualified Charitable Distribution?

For individuals age 70 ½ or older, the IRS allows qualified charitable distributions, a form of charitable giving. This gift is a transfer from an IRA to the IRS-approved charity of your choice. The IRS treats eligible gifts as tax-free transfers. This means it does not include the value of this gift in your annual taxable income. Eligible gifts also apply toward your required minimum distributions (RMDs) for the year. If you do not need your mandatory withdrawal, you can use qualified charitable distributions to satisfy your RMD requirement tax-free. 

Under some circumstances, you can also use a Roth IRA, but this is unusual. You must meet the age requirements for QCDs, and the recipient must be a qualified charity by law. Additionally, you must transfer your assets directly from the IRA to the charity in question. The IRS won’t recognize the eligible distribution if you transfer the assets to yourself and then gift them to charity. A QCD applies to your taxes in the tax year the charity receives the gift. Given the direct transfer requirement, giving and receiving should be contemporaneous in most cases. 

How QCDs Work

There are multiple ways to transfer funds for a QCD, including cash, securities and direct electronic transfers. You may also write checks made payable to the charity, as long as it draws directly from your IRA account. The charity must then provide you with a receipt or other written confirmation of the gift. To be eligible, you cannot receive anything in return, such as tickets to a charity event.

For 2026, individuals age 70 ½ and older can make up to $111,000 in qualified charitable distributions (up from $108,000 in 2025) that are excluded from taxable income. These distributions must be made directly from an IRA to one or more eligible 501(c)(3) charities. 

Married couples filing jointly have a higher limit. The IRS allows each partner to make QCDs from separate IRAs for a combined total of $222,000. They must complete the transfer by Dec. 31, 2026, and funds must move directly from the IRA custodian to the charity. You cannot give QCDs to donor-advised funds or private foundations, nor any supporting organizations.

How QCDs Affect Your Taxes and Estate Plan

QCDs offer more than just a way to give to charity. They can also serve as an important tax management tool for retirees who must take RMDs from their IRAs. 

Because a QCD transfers money directly from an IRA to a qualified charity the IRS excludes the amount from your taxable income for that year. This can lower overall income and reduce the effective tax rate. A calculated gift can keep the donor from moving into a higher tax bracket. For individuals with significant retirement assets, charitable giving can be a tax-efficient way to manage IRS income requirements.

Another advantage of QCDs is that they reduce adjusted gross income (AGI) rather than simply providing a deduction. This distinction matters because it affects many tax thresholds. For example, the taxes on your Social Security income and your Medicare premiums are based on adjusted gross income. 

By keeping income lower through a QCD, retirees may reduce or avoid additional taxes and surcharges tied to these programs. Unlike traditional charitable deductions, which you must itemize, QCDs offer a benefit even to taxpayers who claim the standard deduction.

QCDs also help retirees meet their required minimum distributions without adding to their taxable income. After age 73, the IRS requires annual withdrawals from pre-tax retirement accounts. For many retirees who do not need the money for living expenses, these withdrawals can unnecessarily increase taxes. 

Making a QCD allows the retiree to satisfy that annual requirement while avoiding tax on the distribution. For example, if a retiree has a $15,000 RMD and makes a $15,000 QCD, they fulfill the entire required distribution without increasing their taxable income.

Estate Planning

From an estate planning perspective, QCDs can help reduce the size of a taxable estate. Every dollar donated directly from an IRA removes that amount from the account before it can grow further. This reduces both future RMDs and potential estate value. 

It can also help lower the eventual tax burden on heirs. They may have otherwise been subject to ordinary income taxes on inherited IRA withdrawals. For larger estates, strategic annual QCDs can complement other lifetime giving strategies, such as annual exclusion gifts or charitable trusts, while still maintaining the donor’s philanthropic objectives.

Married couples can take advantage of QCDs by each making their own tax-free transfers from separate IRAs. This effectively doubles annual charitable limits. Through QCDs, donors can see the impact of their gifts during their lifetime, rather than waiting to pass assets through a will or trust. 

By integrating qualified charitable distributions into both tax planning and estate planning, retirees can support meaningful causes while reducing their income taxes and creating a more efficient transfer of wealth to future generations.

Reasons Why You May Want to Make a QCD

One reason to make a qualified charitable distribution is it donates directly from your IRA without creating taxable income. The money goes straight to the charity, so the IRS won’t count it as part of your annual income. This makes it a clean and efficient way to give since your IRA custodian handles the transfer with minimal paperwork. For retirees who already support nonprofits, this approach can simplify annual giving while maintaining a clear tax record.

Another benefit of QCDs is that they help you meet your required minimum distribution without increasing your tax bill. Once you reach the age for your RMDs, you must withdraw a certain amount from your retirement accounts each year. If you do not need that money for living expenses, a QCD allows you to direct it to a qualified charity instead. This allows you to satisfy your RMD while supporting a cause you care about at the same time.

Need help calculating your required minimum distributions? SmartAsset’s RMD calculator can help you estimate your distributions and determine when they’re due.

With QCDs, you can use your retirement savings for philanthropy without affecting your cash flow. Instead of writing checks or liquidating other investments, you can allocate funds from IRA that might otherwise trigger future tax liability. This enables you to give larger gifts in a financially sustainable manner while ensuring your after-tax savings remain available for personal needs or your emergency fund.

Finally, QCDs can be part of your long-term legacy plan. Making direct charitable gifts from your IRA allows you to see the results of your giving during your lifetime while reducing the amount left in taxable accounts for heirs. For retirees who want to blend charitable goals with financial planning, QCDs are a simple and effective way to satisfy both priorities.

How to Execute a QCD

The first step is contacting your IRA custodian and requesting a qualified charitable distribution. Most major custodians have a dedicated QCD form or process, and some accept online submissions and requests. You’ll typically need to provide the charity’s name, the amount you want to donate and instructions for how to deliver the funds.

The most important requirement is that the money goes directly from your IRA to the charity. Some custodians send the funds electronically, while others issue a check payable to the charitable organization. If your custodian issues a check, you may be able to deliver it yourself but they must make it out to the charity, not to you.

This distinction matters because the IRS will not treat a withdrawal as a QCD if you receive the funds first, then make a donation. Once the money passes through your hands, it generally becomes a taxable distribution and loses the special tax treatment associated with a QCD.

It’s also important to pay attention to timing. You must complete the transfer by December 31 to count for that tax year and, if applicable, satisfy your required minimum distribution. Because custodians often experience higher processing volumes toward the end of the year, waiting until the last few weeks of December can create unnecessary risk.

After the donation is completed, keep documentation from both the custodian and the charity. The charity should provide a written acknowledgment showing the amount received and confirming that no goods or services were provided in exchange for the gift. You’ll need these records when preparing your tax return.

Common QCD Mistakes to Avoid

One of the most common mistakes is taking your required minimum distribution before making a QCD. Because RMDs are generally treated as taxable income, withdrawing the funds first can eliminate the primary tax benefit. To maximize the value of a QCD, many retirees make the charitable transfer before taking any other IRA distributions during the year.

Another frequent error is donating to an organization that does not qualify. QCDs generally must be made to eligible public charities recognized under Section 501(c)(3). Donor-advised funds, private foundations and supporting organizations are typically not eligible recipients, even though they are legitimate charitable entities.

It’s also important not to receive anything of value in exchange for the donation. If the contribution includes benefits such as event tickets, merchandise, meals or other perks, some or all of the transfer may fail to qualify as a QCD.

Finally, many retirees underestimate how long the process can take. Custodians may require several business days—or longer during busy periods—to process a request. Starting early can help ensure the transfer is completed before year-end and reduce the risk of missing an RMD deadline.

A financial advisor can help coordinate QCDs with your broader retirement income strategy, verify that the receiving charity qualifies and ensure the transaction is completed correctly.

Bottom Line

Qualified charitable distributions are a way to give money tax-free from your IRA. As long as you follow the rules, you can give away up to $111,000 to eligible charities in 2026 without increasing your taxable income.

Tips for Charitable Tax Deductions

• A financial advisor specializing in taxes can help maximize your return. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• While giving cash is a straightforward way of making a donation, other assets are donatable, as well. Consider donating real estate if you’re strapped but still want to make a difference.

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