Sponsors (6)
The bill expands tax-favored IRA giving by allowing QCDs to donor-advised funds and clarifies processing for custodians, likely increasing donor-advised-fund inflows but also enabling tax-advantaged giving that can delay funds to operating charities and raise administrative burdens.
IRA owners — particularly seniors and retirees — can make qualified charitable distributions (QCDs) directly to donor-advised funds, creating a new tax-efficient way to donate from IRAs.
Donor-advised funds and nonprofit organizations may receive increased charitable contributions as IRA owners gain an additional tax-favored giving vehicle.
IRA payers and custodians gain clearer statutory authorization to process QCDs to donor-advised funds, reducing legal ambiguity for tax reporting and custody operations.
IRA owners and taxpayers could obtain immediate tax benefits while retaining advisory control over donated assets in donor-advised funds, which may reduce the ultimate amount and timing of funds reaching public charities.
Public charities could experience slower or delayed grant funding if donations are routed first into donor-advised funds where grants are discretionary.
The IRS, IRA payers, and custodians may face increased administrative and compliance burdens from needing updated guidance, systems changes, and additional recordkeeping.
Based on analysis of 4 sections of legislative text.
Permits qualified charitable distributions from IRAs to be made to donor-advised funds by removing a prior exclusion in the tax code; applies to distributions after enactment.
Introduced March 3, 2026 by Todd Young · Last progress March 3, 2026
Allows owners of individual retirement accounts (IRAs) to make qualified charitable distributions (QCDs) directly to donor-advised funds by removing a current textual exclusion in the Internal Revenue Code. The change applies to distributions made after the date the law takes effect. This means IRA holders who use QCDs to meet required minimum distributions or to receive the tax benefit of a QCD can now send those dollars into donor-advised funds, affecting donors, charitable organizations, IRA custodians, and the flow and timing of charitable giving.