Total charitable impact

 

Your giving options for a QCD

June 13, 2019

Donating your Required Minimum Distribution (RMD) to charity in the form of a Qualified Charitable Distribution (QCD) can be a great way to maximize your charitable impact. However, federal law does not permit donor-advised funds to accept QCDs.

The Pension Protection Act of 2006 limited QCD recipients to certain types of charities. Donor-advised funds, most private foundations, and supporting organizations are ineligible.  

What are my options for charitable giving with my RMD?

  1. You can donate your RMD directly to a qualified 501(c)(3) public charity in the form of a QCD. This distribution can be made tax-free.
  1. You can donate your RMD to our Sustainable Disaster-Relief Fund (SDRF) and support communities recovering from natural disasters. This distribution can be made tax-free in the form of a QCD. The SDRF is a field-of-interest fund (targeted for a specific need), not a donor-advised fund. You will not have advisory privileges over grants from this fund.
  1. You can still donate your RMD to a donor-advised fund at Vanguard Charitable. You will have to pay income taxes on the distribution, but the subsequent charitable contribution tax deduction may help offset these costs.

As you consider options with your RMD, please consult your tax advisor for more information about your specific circumstances.

Contribute to a Vanguard Charitable donor-advised fund                           

What is an RMD? Why do I have to take it? See our FAQs here.

Resources for more information on RMDs/QCDs:

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals