Most advisors already know what a qualified charitable distribution (QCD) is. The harder question is which clients, out of an entire book of business, are actually good candidates for one, which are better served by another giving route, and when to raise it before the conversation gets crowded out by everything else on a year-end checklist. Use the lists below as a starting filter, not a script.
The Baseline Requirement
To qualify for a QCD, the client must be at least 70½ when the distribution is made. QCDs generally come from traditional IRAs, including inherited IRAs when the beneficiary is 70½ or older. Roth IRAs can also qualify, although there is usually little tax advantage when the distribution is already tax-free. Active SEP and SIMPLE IRAs and employer-sponsored retirement plans such as 401(k)s are not eligible sources for QCDs. Funds in an employer plan may become eligible after a permitted rollover to an IRA.
Ask About a QCD When a Client…
- Is 70½ or older with a traditional or inherited IRA and has not used a QCD before.
- Is already taking, or about to begin, required minimum distributions (RMDs) and does not need that cash flow to cover living expenses.
- Takes the standard deduction rather than itemizing. Because an eligible QCD is excluded from income rather than claimed as an itemized deduction, it can provide a tax benefit even for clients who do not itemize.
- Is in the top tax bracket, where the new 2026 cap limits the value of itemized deductions to 35%, even at a 37% marginal rate. Excluding the gift from income through a QCD is not affected by that cap. QCDs and RMDs: What Advisors Should Help Clients Understand covers the full set of 2026 changes.
- Is concerned about Medicare premium surcharges (IRMAA) or taxation of Social Security benefits. By excluding otherwise taxable IRA distributions from income, a QCD may reduce the income used in these calculations, potentially lowering future Medicare premiums or the taxable portion of Social Security benefits.
- Holds highly appreciated securities in a taxable account that they would like to pass to heirs. Those assets may receive a step-up in basis at death, while an inherited traditional IRA remains taxable to the beneficiary. For some clients, giving from the IRA through a QCD and keeping the appreciated securities is the more tax-efficient order. For others, giving the appreciated stock directly is the better fit. Compare both before year-end.
- Holds a donor-advised fund and wants to give from their IRA. By law, QCDs cannot be directed to a donor-advised fund at any sponsor. Other fund structures, such as a field of interest fund, may be able to receive a QCD. PCF will confirm eligibility for a specific fund before the gift is made, contact Pinellas Community Foundation to discuss client situations individually. .
- Has a spouse with a separate IRA. Each spouse has an individual QCD limit, $111,000 for 2026, so a two-IRA household may have more capacity than a client assumes.
- Is considering a larger, structured charitable gift, such as a charitable remainder trust or charitable gift annuity. A one-time QCD election allows eligible donors to transfer up to $55,000 in 2026 directly from an IRA to a qualifying arrangement. Because these gifts involve additional legal and tax requirements and the election can be used only once, plan them well before year-end.
Other Year-End Routes When a QCD Is Not the Right Fit
A QCD is ruled out, at least for now, when the client is under 70½, the funds sit in an active employer plan that has not been rolled to an IRA, the client specifically wants the gift to go to a donor-advised fund, or the client needs the distribution itself as income. Those clients may still have a year-end gift to make. Match them to the route that fits, and check its deadline.
- Charitable clients with appreciated stock or securities. Giving appreciated stock directly, rather than selling it first, generally avoids capital gains tax on the appreciation while still allowing a deduction. The gift can go to a client’s existing fund at PCF or open a new donor-advised fund, which starts at $5,000. PCF deadline: initiate by December 18.
- Clients who already hold a donor-advised fund at a national sponsor, such as Fidelity Charitable or Schwab Charitable. These clients do not need to move their fund to support Pinellas County. They can recommend a one-time grant from their existing donor-advised fund to a PCF fund. The grant does not create an additional tax deduction, since the deduction was taken when the donor-advised fund was funded, and the sponsor’s own process determines who can recommend grants. PCF deadline: contact PCF by December 23.
- Clients who want a simple, local gift before year-end without opening a new fund. Helping Pinellas Now, PCF’s community-response fund, supports operating grants, emergency response, and other pressing community needs in Pinellas County. A client can give online, by check, or with appreciated stock and securities. Standard PCF deadlines apply: December 31 for cash, check, or credit card, and December 18 to initiate a stock gift.
- Clients who need the income this year. Note them as future QCD candidates rather than dropping the conversation, and revisit when their cash-flow needs or RMD situation changes.
Once you identify a client who could benefit from a QCD or another year-end gift, PCF can explore the available options with you while keeping you involved in the planning process.
Refer a client, or ask a question about a specific case, by contacting Meg Lokey, Vice President of Philanthropy at Pinellas Community Foundation, at 727-306-3142 or ml****@********cf.org. PCF reaches out to your client within one business day, only in the way you’ve specified, and you stay in the loop at every step.
