Qualified Charitable Distribution (QCD) Rules Could Expand Under New Federal Legislation 

Learn how proposed legislation could expand Qualified Charitable Distribution (QCD) rules beyond IRAs and what it means for donors, attorneys, CPAs, and financial advisors. 

For many charitably minded individuals age 70½ and older, a Qualified Charitable Distribution (QCD) is one of the most tax-efficient ways to support the causes they care about. By making a charitable gift directly from an Individual Retirement Account (IRA), donors can reduce taxable income while making a meaningful impact in their communities. 

Now, proposed bipartisan legislation could make QCDs even more accessible by expanding the types of retirement accounts eligible for QCDs. 

Here’s what you need to know. 

What Is a Qualified Charitable Distribution (QCD)? 

A Qualified Charitable Distribution allows individuals age 70½ or older to make a direct gift from an IRA to a qualified public charity. In 2026, donors can contribute up to $111,000 annually through a QCD. 

Because the distribution is made directly to charity, it is generally excluded from taxable income, making it a valuable charitable planning strategy for many retirees. 

At the Community Foundation for Greater Atlanta, QCDs can support a variety of charitable funds, including designated funds and field-of-interest funds that help donors create lasting community impact. 

What Is the Charity Parity Act? 

In May 2026, bipartisan lawmakers introduced the Charity Parity Act in both the U.S. House and Senate. 

If enacted, the legislation would allow QCDs to be made directly from employer-sponsored retirement plans—including 401(k), 403(b), and 457(b) plans—rather than limiting QCDs to IRAs. 

This proposal would eliminate a common obstacle in charitable planning: the need for many donors to first roll assets from a workplace retirement plan into an IRA before making a QCD. 

Why Does This Matter? 

Many retirees hold significant assets in employer-sponsored retirement plans rather than traditional IRAs. 

Under current law, these individuals often must complete an IRA rollover before making a QCD. The proposed legislation would simplify that process by allowing charitable gifts directly from eligible workplace retirement plans. 

For donors, this could mean: 

• Less paperwork  

• Fewer administrative steps  

• Reduced costs and delays  

• Easier charitable giving  

For attorneys, CPAs, and financial advisors, the legislation represents another opportunity to help clients incorporate charitable giving into retirement and tax planning strategies. 

How Can the Community Foundation Help? 

Whether or not the proposed legislation becomes law, the Community Foundation can help donors maximize the impact of retirement assets through charitable giving. 

For example, donors can use QCDs to establish or support: 

• Field-of-interest funds focused on causes such as education, health, the arts, housing, or the environment  

• Designated funds that provide ongoing support to one or more favorite nonprofit organizations  

These charitable funds enable donors to create a lasting philanthropic legacy while supporting the issues and organizations they care about most. 

It’s important to note that current law does not allow QCDs to be made to donor-advised funds. 

Another QCD Bill to Watch 

A second bipartisan proposal—H.R. 2891, the IRA Charitable Rollover Facilitation and Enhancement Act of 2025—would change that. 

If enacted, the legislation would allow donors to direct Qualified Charitable Distributions to donor-advised funds for the first time. 

While the bill has not yet become law, many organizations across the charitable sector continue to advocate for this important change. 

What Advisors Should Do Now 

The proposed legislation offers a good opportunity to identify clients who: 

• Are age 70½ or older  

• Have significant retirement assets  

• Already have charitable goals  

• May benefit from tax-efficient charitable planning  

Even if the legislation does not pass, conversations about QCDs, Required Minimum Distributions (RMDs), beneficiary designations, and charitable funds can help clients align their financial plans with their philanthropic values. 

Partner With the Community Foundation 

The Community Foundation regularly works alongside attorneys, CPAs, and financial advisors to help donors incorporate charitable giving into their estate, retirement, and tax planning. 

Whether you’re exploring QCDs, charitable funds, or other planned giving strategies, our team is here to help create customized solutions that support both your clients’ financial goals and the causes they care about.