A QCD is a way for people who are 70½ years old or older to donate money from their individual retirement account straight to a charity without paying taxes on that donated amount.
Normally, when you reach a certain age, you're required to take a minimum amount from your retirement savings each year, and that amount is usually subject to income tax. However, with a QCD, instead of taking that required money out, you can directly send it to one or more charities. By doing this, you can avoid having that money count as taxable income, which might otherwise push you into a higher tax bracket or reduce other tax benefits you receive.
There are rules and limits to how much you can donate this way, but it's a way for older individuals to support charities while also getting some tax benefits.
Although you cannot currently contribute a QCD to a donor- advised fund, there are other fund types at the Community Foundation—including the FOREVER Funds, which supports our community-voiced, community-centered, grantmaking—that do qualify. We also encourage you to contact your local charity of choice to ask if they accept QCDs.