QCDs & Donor-Advised Funds

Many members are looking for faithful ways to support the church while being wise stewards of their finances. Two tools that some find helpful are Qualified Charitable Distributions (QCDs) and Donor-Advised Funds (DAFs).

Both can support the church’s mission—but they work in different ways.

What Is a QCD?

A Qualified Charitable Distribution is a direct gift from an IRA to a church or other qualified charity. For those age 70½ or older, this type of gift may count toward required minimum distributions and can reduce taxable income—if done properly.

Key things to know:

The donor must be 70½ or older
Funds must go directly from the IRA custodian to the church
The donor should ask that their name appear with the gift
It is not taken as a charitable deduction—rather, the income is excluded

What Is a Donor-Advised Fund (DAF)?

A Donor-Advised Fund is a charitable account created at a sponsoring organization. Donors contribute to the fund and may receive a tax deduction at that time. Later, they can recommend grants to the church or other ministries.

DAFs are often used to:

Plan giving over several years
Support multiple organizations from one account
Donate appreciated assets
Give anonymously if desired

How the Church Handles These Gifts

For either type of gift, the church will:

Send a timely acknowledgment
Credit the donor appropriately (including toward pledges if requested)
Honor anonymity when asked

Getting Started

If you are interested in giving through one of these methods:

For a QCD:
Contact your IRA custodian and request a Qualified Charitable Distribution to the church. Let the church office know the gift is coming so it can be properly recorded.

For a DAF Grant:
Log in to your Donor-Advised Fund account or contact your sponsoring organization to recommend a grant to the church. Indicate whether the gift is for a pledge or special ministry.

This information is provided for educational purposes only. Members are encouraged to consult their tax or financial advisor or the Internal Revenue Service for guidance specific to their situation.