IRAs

Facilitate client charitable giving via their IRA.

While not often advantageous from a tax perspective, your client may use distributions from their individual retirement account (IRA) to contribute to their donor-advised fund account.

To do so, you would need to assist your client in:

• Taking a distribution from their IRA.

• Including the distribution as part of their annual income for tax purposes.

• Making a wire transfer or other form of cash contribution.

Wondering if your client can leverage their donor-advised fund account for qualified charitable distributions (QCDs) from their IRA?

Donor-advised funds, including those powered by Charityvest for Advisors, are not eligible to receive QCDs. Any contribution from an IRA to a DAF will be considered as part of your client's annual taxable IRA distributions.

Charityvest can receive QCDs into single identified organization funds, however. See more details in the following section.

Qualified charitable distributions (QCDs)

If your client is at the age where they must take the required minimum distribution (RMD) each year, they may wish to contribute some or all of this RMD for charitable purposes to optimize their tax benefit and philanthropic impact. This is possible for clients via qualified charitable distributions (QCDs).

IRS prohibits DAFs from receiving QCDs. However, Charityvest can receive QCDs into a specialized fund type called a single identified organization fund, which makes distributions only to a single eligible charitable organization.

To set up an SIO to receive a QCD, Charityvest currently leverages its Community Fund infrastructure. Request to open a Community Fund here.

QCDs must be issued in the name of the charity (in this case, Charityvest, Inc.). For additional information including payment address and/or bank transfer information, please contact support, and we will be glad to assist you in completing the QCD on behalf of your client.