Sponsors (6)
The bill makes it easier and more tax-efficient for IRA owners to give to donor-advised funds—boosting flexible charitable contributions—while risking delayed payouts to operating charities, added administrative burdens, and a modest reduction in income tax receipts.
Seniors and IRA owners can direct required minimum distributions as qualified charitable distributions to donor-advised funds, allowing them to give tax-efficiently without increasing taxable income.
Donor-advised funds and other nonprofits are likely to receive increased charitable contributions as IRA owners gain an additional, convenient route for giving.
Donor-advised funds can receive tax-advantaged QCDs but may delay grants to operating charities, reducing the immediacy of public benefit from those gifts.
Expanding eligible QCD recipients to include donor-advised funds will modestly reduce taxable IRA distributions counted as income, slightly shrinking individual income tax receipts.
Financial institutions and charities will face increased administrative and reporting complexity to implement and track QCD eligibility for distributions to donor-advised funds.
Based on analysis of 4 sections of legislative text.
Introduced March 3, 2026 by Todd Young · Last progress March 3, 2026
Allows individuals to make qualified charitable distributions (QCDs) from individual retirement accounts (IRAs) directly to donor-advised funds (DAFs). The change amends the Internal Revenue Code to remove the current prohibition and applies to distributions made after the date of enactment.