QCDs Still Make Sense for 2026

While the OBBBA made charitable giving a particularly effective strategy in 2025 for tax and financial purposes, 2026 holds opportunities, as well. Regardless of whether or not your client itemizes, those age 70½ and over who have IRA assets may benefit from using a Qualified Charitable Distribution (QCD). QCDs are a powerful and tax-advantaged tool for clients to gift up to $111,000 per taxpayer (2026 limit) for charitable purposes and lower their AGI. In the future, proposed legislation may open the door for your clients to use QCDs to fund their donor advised funds at The Community Foundation. (Currently QCDs cannot fund donor advised funds).    

There are many options open to QCD clients. Clients can create a personal fund that supports a cause or issue. For example, your client may be passionate about reducing homelessness, expanding access to the arts, or funding youth programs. Other funds started by clients are directed toward specific nonprofit(s). And finally, some prefer a more hands-off approach, creating broad funding that allows The Community Foundation to respond to needs and opportunities as they arise in the community. 

Regardless of the type of fund, your clients can use their IRA assets, reduce their AGI and have the peace of mind knowing that The Community Foundation will ensure that their wishes are honored now and in the future.   

Please call me if you think a QCD to a fund at The Community Foundation might benefit your clients. Together, we can achieve your client’s philanthropic goals.