My name is Evan Vladem, and I’m a partner and financial advisor at Associated Investor Services. I get it... talking about money can be intimidating... So, we created a judgment-free space where there are no "dumb" questions or embarrassing situations. Everything and anything is welcome, and we'll provide our best answers and/or guidance.
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Dear Evan,
I’m turning 73 this year and will have to start taking required minimum distributions (RMDs) from my IRA. I don’t really need the income, but I’d like to give more to charity. What’s the best way to do it?
Sincerely,
Looking to Give With Purpose
Dear Looking to Give,
That’s a wonderful question - and a great place to start the conversation.
Many retirees find themselves in the same spot: they must take RMDs, but they’d rather put that money to good use.
The Easiest Way to Give: A QCD
A Qualified Charitable Distribution (QCD) is the simplest and most tax-efficient way to donate from your IRA. Once you turn 70½, you’re eligible to make QCDs - even before your RMDs begin. Then, starting at age 73, when required distributions kick in, those same QCDs can count toward your RMD for the year.
You can give up to $108,000 (in 2025) directly from your IRA to a qualified charity. That money satisfies your RMD (if applicable) and doesn’t show up as taxable income, which can help lower your adjusted gross income and even your Medicare premiums.
It’s a great option if you’re already supporting causes you care about and don’t need your RMD for living expenses.
What If You Inherited the IRA?
If you have an inherited IRA and you’re under 70½, you can’t do a QCD yet. You’d need to take the RMD as income first, then donate separately - which means it still shows up on your tax return.
Once you reach 70½, you can make QCDs directly from an inherited IRA, and those gifts can count toward your annual required amount.
Why You Can’t Use a Donor Advised Fund (DAF)?
A Donor Advised Fund is like a charitable account - you contribute, receive an immediate deduction, and recommend grants to charities over time.
It’s great for planning your giving, but RMDs and QCDs can’t go into a DAF. The IRS requires QCDs to go directly to a qualified public charity, not into a fund or private foundation.
DAFs still make sense if you want to:
- “Bunch” several years of donations into one tax year,
- Invest charitable dollars for future giving, or
- Simplify gifts to multiple organizations.
If that’s your goal, you’d take the RMD as income first, then contribute to your DAF and potentially claim a deduction if you itemize.
What Changes Under the “One Big Beautiful Bill”?
The new tax law - the One Big Beautiful Bill (OBBB) - passed in 2025, but most changes take effect in 2026.
Here’s the short version:
QCDs stay the same. Still one of the best options for retirees.
Bigger hurdle for deductions. Starting 2026, itemized charitable gifts must exceed 0.5% of income to count.
Small new perk for non-itemizers. You’ll be able to deduct up to $1,000 ($2,000 for couples) for cash gifts.
Translation: 2025 may be a great year to “bunch” gifts before the new rules begin.
The Bottom Line
There’s more than one way to give - but the best plan keeps things simple. If you’re RMD-age, QCDs are the easiest and cleanest route. If you want to give strategically or over time, a Donor Advised Fund can help - just not directly with your IRA. And while the tax rules may change, your generosity doesn’t. With a little planning, your money can make a difference - for both you and the causes you care about.
Cheers!
-Evan Vladem
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