At DuPage Foundation, we can help you navigate the ins and outs of charitable giving. Below, we’ve answered some of the most common questions advisors ask about Qualified Charitable Distributions (QCDs), so you can help your clients make the most of this powerful giving tool.
“Is an IRA the only retirement account you can make QCDs from?”
Short answer: Almost.
Long answer: QCDs can be made directly from a traditional IRA or an inherited IRA to a qualified charity. Clients with a SEP or SIMPLE IRA can use those, too—but only if their employer is no longer making contributions. Technically, a Roth IRA can be used, but since distributions are already tax-free, it usually doesn’t make tax sense to use them for this purpose.
“What’s the difference between a QCD and an RMD?”
Short answer: They’re very different—but a QCD can satisfy an RMD.
Long answer: Required Minimum Distributions (RMDs) kick in at age 73 and are considered taxable income. A QCD, on the other hand, is a means to directly transfer from a qualifying IRA to a charity—and it’s not taxable. Even better? A QCD can count toward a client’s RMD for the year, helping reduce taxable income while supporting a cause they care about.
“Can someone make a QCD before RMDs start?”
Short answer: Yes—starting at age 70½.
Long answer: Although the SECURE Act bumped the RMD starting age to 73, it left the QCD age at 70½. That means clients can start using their IRAs for charitable giving a few years earlier without triggering taxable income. It’s a great option for clients who want to give sooner rather than later.
“Can my client send a QCD to a DuPage Foundation fund?”
Short answer: Yes, as long as it’s the right type of fund.
Long answer: While donor-advised funds aren’t qualifed to receive QCDs, other fund types at DuPage Foundation do. These include:
- Unrestricted funds – a permanent endowment designed to provide maximum flexibility in meeting the most pressing needs of our community.
- Field-of-interest funds – perpetual support for one or more areas of interest (e.g., mental health, food insecurity, the environment, etc.).
- Designated funds – support for a specific local nonprofit.
- Operating funds – support for the general operations of our Foundation.
“What’s the maximum QCD gift a client can make?”
Short answer: $108,000 in 2025.
Long answer: In 2025, an individual can give up to $108,000 from their IRA directly to a qualified charity. For married couples, that total doubles—up to $216,000 ($108,000 from each spouse’s separate IRA accounts). That’s a significant amount of giving with big tax-saving potential. This amount indexes with inflation annually.
Let’s Talk QCD Strategy
QCDs are an effective way to help clients meet both their charitable and financial goals, and we’re here to help you make the most of them. If you have questions or want to explore a QCD strategy tailored to a specific client, reach out to us anytime. Whether it’s an immediate need or part of a long-term legacy plan, our team here at DuPage Foundation is more than happy to be your go-to partner for smart, impactful giving.
Check out our professional advisor resources for additional info or contact Michael Trench, vice president for advancement, at 630.665.5570 or michael@dupagefoundation.org.
