Qualified Charitable Distribution
Qualified Charitable Distributions (QCDs) — 2026 Updates
2026 QCD Contribution Limit
For the 2026 tax year, the annual limit for Qualified Charitable Distributions (QCDs) is:
$111,000 per individual age 70½ or older, or
$222,000 for married couples filing jointly if each spouse makes a QCD from their own IRA.
This amount is indexed for inflation.
How it works:
A QCD is a direct transfer from your IRA to a qualified 501(c)(3) charity, like Big Cat Rescue (FEIN 59-3330495), that excludes the distribution from your taxable income.
Eligibility & Basic Rules
You must be at least age 70½ when the distribution is made.
QCDs must be made directly from the IRA custodian to the charity — you can’t take the money yourself first.
The total amount of QCDs in a year cannot exceed the limit above.
QCDs count toward your Required Minimum Distribution (RMD) for the year.
Split-Interest Vehicles & SECURE 2.0 Act Provisions
Under the SECURE 2.0 Act and subsequent IRS guidance:
You can make a one-time QCD of up to $55,000 (indexed) to fund certain split-interest vehicles such as charitable remainder trusts, charitable gift annuities, or charitable remainder unitrusts for yourself and/or your spouse.
This one-time transfer does not count against the regular annual QCD limit.
These provisions are designed to encourage charitable giving while allowing donors some flexibility with income stream arrangements.
Donor-Advised Funds & QCDs
QCDs cannot be made to donor-advised funds (DAFs) or private foundations.
If you use a DAF as your giving vehicle, your IRA custodian cannot qualify that transfer as a QCD for tax purposes, even though the sponsoring organization may be a 501(c)(3).
This remains a critical distinction: a QCD must go to an operating public charity engaged in mission work — not into a donor-advised account.
Related 2026 Charitable Tax Law Changes
New general tax law changes beginning in 2026 may affect donors’ overall giving strategy:
Above-the-line charitable deduction: Individuals who do not itemize can now claim up to $1,000 in cash donations ($2,000 for married couples) against income beginning in 2026. This deduction cannot be used for gifts to DAFs or private foundations.
Itemized deduction floor: For itemizers, charitable deductions are only allowed on amounts that exceed 0.5% of adjusted gross income (AGI).
High-income cap: Itemized deduction benefits are capped at 35% of total itemized deductions for high-income taxpayers, reducing the value of traditional charitable deductions.
Because QCDs are excluded from income above the line, they bypass these new limits on charitable deductions, making them more attractive in the 2026 tax landscape.
Best Practices for Making a QCD
Plan early in the year: December 31 is the deadline for QCDs to count for a given tax year. Allow time for your IRA custodian to process the transfer.
Ensure the charity qualifies: Confirm the organization is a valid 501(c)(3), such as Big Cat Rescue (FEIN 59-3330495).
Work with financial advisors: Because individual circumstances vary, especially with SECURE 2.0 and split-interest gifting, consult a tax or estate planning professional before making large QCD gifts.
Check with the IRS website for updates: https://www.irs.gov/newsroom/qualified-charitable-distributions-allow-eligible-ira-owners-up-to-100000-in-tax-free-gifts-to-charity
