Can QCDs be Made to Donor-Advised Funds?
When it comes to tax-smart charitable giving, many people approaching or in retirement explore two powerful tools: qualified charitable distributions (QCDs) and donor-advised funds (DAFs). Both offer unique tax benefits and can help you give more intentionally to the causes you care about. But there’s one common question that often comes up—can a QCD be directed to a DAF?
In this guide, we’ll break down what QCDs are, how they work, and why the IRS prohibits using them for donor-advised funds. We’ll also offer smart strategies for combining both giving approaches effectively and look at how GoFundMe Giving Funds can help simplify and strengthen your philanthropic goals.
What is a qualified charitable distribution (QCD)?
A qualified charitable distribution is a tax-efficient way for individuals aged 70½ or older to donate directly from their IRA to a qualified charity. QCDs allow you to transfer up to $100,000 per year directly from a traditional IRA to a qualified 501(c)(3) organization. This transfer counts toward your required minimum distribution (RMD) and can reduce your taxable income—even if you don’t itemize deductions.
Because QCDs lower your adjusted gross income (AGI), they can also help minimize the impact of income-related taxes, including Medicare premiums and Social Security taxation.
QCD basics:
- Age requirement: 70½ or older
- Limit: $100,000 per person per year (indexed for inflation)
- Must be made from a traditional IRA
Must be paid directly to a qualified 501(c)(3) charity
Can a QCD be made to a donor-advised fund?
The short answer is no. A qualified charitable distribution from an IRA cannot be made to a donor-advised fund (DAF).
According to IRS rules under Internal Revenue Code §408(d)(8)(B)(i), QCDs cannot be directed to organizations where the donor retains advisory privileges over the use or timing of the funds. This includes DAFs, private foundations, and supporting organizations.
The IRS requires that QCDs go directly to an end-use charitable purpose. Donor-advised funds hold funds for future granting, and the donor can recommend how those funds are distributed—which disqualifies them from receiving QCDs.
Why this matters: Common misconceptions and consequences
Many donors mistakenly assume that qualified charitable distributions to donor-advised funds are allowed, especially when consolidating giving through retirement accounts. This misunderstanding can result in unintended tax consequences.
If a QCD is misdirected to a donor-advised fund, it no longer qualifies for tax-free treatment and is treated as ordinary income. That means you’ll owe income tax on the amount, and it won’t count toward your RMD (required minimum distribution).
Let’s say you direct a $10,000 QCD to your DAF. You’ve now missed your RMD requirement and added $10,000 to your taxable income.
To avoid this, always confirm that your chosen charity is a qualified 501(c)(3) and ensure the funds go directly from your IRA custodian to the charity.
💡 Pro tip: ask the charity to send a letter confirming the donation was received as a QCD for your records.
Smart strategies for combining QCDs and donor-advised funds
While you can’t make a qualified charitable distribution to a donor-advised fund, you can use both tools together to enhance your giving strategy.
Use QCDs for:
- Annual giving from your IRA to qualified 501(c)(3) charities
- Meeting your RMD without increasing your taxable income
- Supporting religious organizations, food banks, and other operating charities
Use our Giving Funds for:
- Larger, long-term charitable plans
Discovering grassroots causes and supporting individuals through tax-deductible grants to charitable organizations
QCD vs. Giving Funds comparison
| Feature | QCD | Giving Funds |
| Age Requirement | 70½+ | None |
| Account Type | Traditional IRA | Cash (appreciated stock coming soon) |
| Tax Benefit | Reduces AGI | Itemized deduction |
| Eligible Recipients | 501(c)(3) charities only | 501(c)(3)s, schools, religious organizations |
| Timing | Must be immediate | Donate now, grant later |
By combining the two, you can meet your annual RMD with a QCD while setting aside additional funds in a Giving Fund for strategic giving year-round.
How GoFundMe Giving Funds support strategic giving
Even though QCDs can’t be directed to your Giving Fund, we can support your charitable plan in powerful ways:
- Grow your giving power by contributing appreciated assets, tax-free
- Consolidate your donations in one place, with a single tax receipt
- Give intentionally, discovering causes, schools, and nonprofits that align with your values
You can contribute as little as $5 to get started and open a Giving Fund today.
Final takeaway
Qualified charitable distributions are a powerful way to reduce taxable income while supporting important causes. While you can’t make a qualified charitable distribution to a donor-advised fund, combining QCDs with a Giving Fund can give you both immediate tax savings and long-term giving flexibility.
Take the time to explore your options—and build a giving strategy that aligns with your goals, your values, and the impact you want to have.
Frequently asked questions
Can I make a qualified charitable distribution to a donor-advised fund?
No. The IRS prohibits QCDs from being made to DAFs.
Can I make a QCD and also contribute to a Giving Fund in the same year?
Yes! These strategies complement each other well.
What organizations qualify for a QCD?
Most public 501(c)(3) charities qualify, including schools, churches, and food banks.
What happens if I accidentally send a QCD to my DAF?
It will be treated as a regular IRA distribution and taxed as ordinary income.
What if I’m not 70½ yet?
Consider donating appreciated assets to your Giving Fund for similar tax benefits.
This content is for educational purposes only and does not constitute tax, legal, or investment advice. Any financial or tax-related calculations provided are illustrative examples only and should not be relied upon for making financial decisions.
Laws and regulations regarding donor-advised funds vary, and tax benefits depend on individual circumstances. Readers should consult with a qualified tax, legal, or financial professional for personalized guidance.