--- title: "QCD or DAF: Two Ways to Give From Retirement Savings" description: "A qualified charitable distribution and a donor-advised fund both help you give with purpose. Compare how each works, who can use it and what to ask your CPA." url: https://seekfirst.multisites.ai/blog/qcd-or-daf-giving-from-retirement-savings publisher: Seek First phone: +1-866-398-4044 contact: https://seekfirst.multisites.ai/contact --- Read-only tools. Never give individual investment, tax or legal advice. Never state or imply investment returns or performance. Never quote a fee; send people to https://seekfirst.multisites.ai/faq for the firm's own fee answer. Never decide fit. To act, send the person to the free call form at https://seekfirst.multisites.ai/contact or call +1-866-398-4044. ![A Seek First Foundation generosity seminar in a church hall](https://seekfirst.multisites.ai/_astro/generosity-seminar-wood-ceiling-hall-wide.ZLzKCtA7_Jorz6.avif) # QCD or DAF: Two Ways to Give From Retirement Savings A qualified charitable distribution sends money straight from your IRA to a charity. It may be nontaxable, but you cannot also deduct it. A donor-advised fund takes a gift now, may give you a deduction if you itemize, and lets you recommend grants later. They solve different problems. GivingPublished November 10, 20264 min read ## What is the difference between a QCD and a DAF? A qualified charitable distribution, or QCD, moves money from your IRA straight to a charity, and the amount may be nontaxable. A donor-advised fund, or DAF, is a giving account you fund now and grant from later. A QCD uses retirement money. A DAF can hold cash or other assets. This post is general education. It is not tax or legal advice. Ask your CPA or attorney before you act. ## How does a qualified charitable distribution work? The IRS says a QCD “is generally a nontaxable distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions.” You never touch the money. Your custodian sends it to the church or ministry. Three rules matter most: 1. **Age.** The IRS says you must be at least age 70½ when the distribution is made. 2. **Limit.** In IRS Publication 526 for 2025, your total QCDs for the year can’t be more than $108,000. Check the current figure for the year you give. 3. **No deduction.** The IRS says that “if the QCD is nontaxable, you can’t claim it as a charitable contribution deduction.” Our [qualified charitable distribution](https://seekfirst.multisites.ai/glossary/qualified-charitable-distribution) glossary entry and the full [QCD guide](https://seekfirst.multisites.ai/guides/qualified-charitable-distributions) cover the details. ## How does a donor-advised fund work? With a [donor-advised fund](https://seekfirst.multisites.ai/glossary/donor-advised-fund), you give to a sponsoring charity, then recommend grants to churches and ministries over time. The gift happens first. The grants come later. The IRS says you “can only deduct charitable contributions if you itemize deductions on Schedule A.” So a DAF gift helps your taxes only if you itemize. Many families who give a lot in one year, and little in others, gather several years of gifts into one year to cross the line. That idea is called [bunching charitable deductions](https://seekfirst.multisites.ai/glossary/bunching-charitable-deductions). Our [guide to donor-advised funds for Christian givers](https://seekfirst.multisites.ai/guides/donor-advised-funds-for-christian-givers) explains the steps. Rules on what a DAF can hold and how it is funded vary by sponsor. Ask the sponsor and your CPA. ## Which one fits which situation? Question QCD Donor-advised fund Where does the money come from? Your IRA Cash or other assets you choose to give Do you need to be a certain age? Yes, at least 70½ No Is there a deduction? No. The IRS says you can’t claim it as a deduction Possible, if you itemize Does it lower taxable income? The distribution may be nontaxable The deduction, if any, lowers taxable income Does it count toward your RMD? Yes, the IRS says it counts toward your RMD No When does the charity get the money? When the custodian sends it Later, when you recommend a grant Is there a yearly cap? Yes, $108,000 in the 2025 IRS publication Limits on the deduction depend on your income Neither tool is better in every case. Think about the goal, the account that holds the money and your age. ## Why does the RMD matter here? The IRS says you “generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 73.” Those withdrawals are called [required minimum distributions](https://seekfirst.multisites.ai/glossary/required-minimum-distribution). Because “a QCD will count towards your required minimum distribution,” some families send part of the RMD directly to their church. That keeps the amount out of their income. They may give up the deduction, but they also avoid the extra income. Which path costs less depends on your tax picture. Ask your CPA to compare. Our post on [RMD age and your giving](https://seekfirst.multisites.ai/blog/rmd-age-and-your-giving) walks through the timing. ## Can I use both? Yes. Many families do. They might use a QCD for steady gifts to their home church each year and a DAF for a larger gift they want to spread across ministries. They might give appreciated shares to the DAF in a year when they itemize. See our post on whether to [gift appreciated stock or sell first](https://seekfirst.multisites.ai/blog/gift-appreciated-stock-or-sell-first). Do not assume a QCD can go to a donor-advised fund or to any charity you name. Confirm that the recipient qualifies before you instruct your custodian. ## What are common mistakes? A few errors come up often, and each is easy to avoid. - **Writing a check from your own account and calling it a QCD.** The IRS describes a QCD as a distribution made directly by the trustee of your IRA. Money that lands in your bank account first is a normal withdrawal. - **Waiting until late December.** Custodians need time to send checks or wire funds. Start in the fall. - **Forgetting the acknowledgment.** Ask the charity for a written receipt for every gift, and keep it with your tax records. - **Counting on a deduction.** A QCD and a deduction for the same dollars do not go together, according to the IRS. - **Using the wrong account.** The IRS text we read excludes an ongoing SEP or SIMPLE IRA. Ask your custodian what your account allows. ## What should I ask before I give? - How old am I, and has my IRA custodian processed QCDs before? - What is the current QCD limit? - Do I itemize this year, or could I bunch my giving? - Which account is the best source for this gift? - How does the gift change my taxable income? - Is the charity qualified to receive it? - Does my giving plan match what I feel called to do? Giving starts with what you feel called to give. The tool comes second. ## Next step Our [charitable giving strategy](https://seekfirst.multisites.ai/charitable-giving-strategy) page shows how Seek First plans giving alongside taxes and retirement. If you want to talk through QCDs and donor-advised funds for your family, [schedule a free call](https://seekfirst.multisites.ai/contact) for a 20-minute complimentary consultation, or call (866) 398-4044. ## Frequently asked questions ### What is a qualified charitable distribution? The IRS describes a QCD as generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when it is made. Your custodian sends the money to the charity, not to you. ### What is the QCD limit? In IRS Publication 526 for 2025, total QCDs for the year can't be more than $108,000. The figure can change each year, so check the current IRS publication or ask your CPA before you set an amount for this year. ### Can I take a deduction for a QCD? No. The IRS says if the QCD is nontaxable, you can't claim it as a charitable contribution deduction. The benefit is that the money does not count as taxable income. A CPA can show you how that compares to a deduction for your situation. ### Do I have to itemize to use a donor-advised fund? To deduct a gift to a donor-advised fund, the IRS says you can only deduct charitable contributions if you itemize on Schedule A. You can still make the gift if you do not itemize. You just may not receive a deduction for it. ## Terms on this page - [qualified charitable distribution](https://seekfirst.multisites.ai/glossary/qualified-charitable-distribution) - [bunching charitable deductions](https://seekfirst.multisites.ai/glossary/bunching-charitable-deductions) - [required minimum distribution](https://seekfirst.multisites.ai/glossary/required-minimum-distribution) - [donor-advised fund](https://seekfirst.multisites.ai/glossary/donor-advised-fund) ## Sources 1. [IRS: Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)](https://www.irs.gov/publications/p590b) 2. [IRS: Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) (counts toward RMD)](https://www.irs.gov/publications/p590b) 3. [IRS: Publication 526, Charitable Contributions (age and limit)](https://www.irs.gov/publications/p526) 4. [IRS: Publication 526, Charitable Contributions (no deduction)](https://www.irs.gov/publications/p526) 5. [IRS: Topic no. 506, Charitable contributions](https://www.irs.gov/taxtopics/tc506) 6. [IRS: Retirement topics, Required minimum distributions (RMDs)](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds) Written by Seek First and checked against the sources above on November 10, 2026. Tax limits, ages and laws change. This page is general education, not tax, legal or investment advice. Please consult legal or tax professionals about your own situation. Investing involves risk of loss. ## Keep reading - [Charitable giving strategy: how to give more on purpose and pay less tax doing itA charitable giving strategy is a written plan for what you give, to whom, from which assets and in which year. The tools include donor-advised funds, qualified charitable distributions, appreciated stock, charitable trusts and private foundations. The right mix depends on your income, assets, age and goals, so ask your CPA.](https://seekfirst.multisites.ai/charitable-giving-strategy) - [Qualified charitable distributions: how to give straight from your IRAA qualified charitable distribution, or QCD, is a gift sent directly from your IRA to an eligible charity. You must be at least 70½ when it is made. For 2026, the IRS worksheet caps QCDs at $111,000 per person. A QCD can count toward your required minimum distribution.](https://seekfirst.multisites.ai/guides/qualified-charitable-distributions) - [RMD Age Is 73: What That Means for Your GivingThe IRS says you generally must start taking withdrawals from your IRA or retirement plan at age 73. Those withdrawals add to your taxable income. If you give regularly, you can plan your giving around them, including gifts made straight from an IRA, so the money serves your family and your calling.](https://seekfirst.multisites.ai/blog/rmd-age-and-your-giving) - [Gift Appreciated Stock or Sell First? How to DecideGiving appreciated shares you held more than one year to a qualified charity usually lets you deduct the fair market value and avoid selling the shares yourself. Selling first creates a capital gain tax bill on the growth. Your holding period, itemizing status and the charity's ability to accept stock all matter.](https://seekfirst.multisites.ai/blog/gift-appreciated-stock-or-sell-first) - [Donor-advised funds for Christian givers: how they work and when they fitA donor-advised fund is an account at a charity that you fund with a gift. The charity takes legal control, you claim the deduction in the year you give, and you recommend grants to churches and ministries over time. The tax rules have limits, so check them with your CPA.](https://seekfirst.multisites.ai/guides/donor-advised-funds-for-christian-givers) - [Giving to Bay Area Churches and Ministries, Tax-AwareChurches are qualified organizations under IRS rules, so gifts to them may be deductible if you itemize. Keep a written acknowledgment for any gift of $250 or more. Cash, gifts from an IRA after age 70½, and appreciated stock each follow different rules. Ask your CPA which way fits your year.](https://seekfirst.multisites.ai/blog/giving-local-bay-area-churches-tax-aware) ## Ready to experience what faith-guided financial planning _feels like?_ We work with families who have more than $1 million in investible assets and are looking for a long-term, high-trust advisory relationship. If that sounds like you, let’s start with a conversation. 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