If you’re thinking about how to make the most of your charitable giving in retirement—or how your giving can reflect your values over time—a qualified charitable distribution (QCD) may be worth considering.
For individuals age 70½ or older with an IRA, a QCD allows you to give directly from your retirement account to an eligible charitable organization. If you’re required to take a required minimum distribution (RMD), your QCD can count toward all or part of that annual distribution. Because the money goes directly to charity, the amount of the qualified charitable distribution can generally be excluded from your federal taxable income—allowing you to support the causes you care about while potentially reducing the tax impact of your required withdrawal. For 2026, the annual QCD limit is $111,000 per individual.
There is one important limitation to keep in mind: QCDs cannot go toward donor-advised funds (DAFs). Internal Revenue Source (IRS) regulations require that QCDs must go directly to a qualifying public charity for immediate charitable use, without allowing donors to retain advisory privileges over the gift. Because DAFs allow donors to recommend future distributions, they are not eligible to receive qualified charitable distributions.
However, Austin Community Foundation offers other charitable fund options that can help you put this tax-smart strategy to work in ways that reflect your goals and values.
Here are four ways your QCD can support your charitable giving through ACF:
1. Provide ongoing support to a nonprofit
Have you supported a nonprofit for years and want your commitment to its work to become part of your charitable legacy? A QCD can be one way to begin putting that legacy in place while continuing to support an organization that matters to you.
Through a designated fund at ACF, you can direct support to one or more nonprofits you care about. When establishing the fund, you identify the organizations you want to support and set the charitable terms for future grants. ACF then manages distributions according to those terms, stewarding your giving over time.
Note: If you use a QCD to support an eligible fund at ACF, you will not retain ongoing advisory privileges over the gift. ACF will manage the charitable assets and make grants according to your fund’s established purpose and terms.
2. Give to your favorite cause(s)
A qualified charitable distribution can help you put your retirement assets toward a cause you care about, even if you’re unsure which organizations to support or want your giving to remain flexible over time. A field-of-interest fund lets you direct your QCD toward an area such as education, health, the environment or another community need, without naming specific nonprofits.
You establish the purpose of your giving at the outset, and ACF draws on its local knowledge and grantmaking process to support organizations working in that area. This approach allows your charitable giving to stay focused on what matters to you while adapting as community needs and solutions evolve.
3. Open doors to higher education
Your QCD can help Central Texas students take the next step toward their educational goals. Through Austin Futures, ACF’s pooled scholarship program, your QCD can join support from other donors to provide scholarships to students pursuing higher education. By pooling resources, donors can help more students access financial support for college.
If you have a specific education-related giving goal, our team can help you explore available options.
4. Give to ACF
If you want your retirement assets to help meet pressing community needs today while strengthening long-term solutions for Central Texas, your QCD can support that work through a gift to ACF. This flexible approach allows your gift to respond where resources are needed most, with a specific focus on expanding economic mobility and housing affordability for Central Texans.
For donors who want their giving to remain responsive as needs change, this option offers a way to turn retirement assets into meaningful, community-focused impact.
QCDs: Getting Started
Ready to explore this giving vehicle to support your goals? A good first step is to talk with your tax or financial advisor about your eligibility and the amount you wish to give.
When you’re ready, connect with ACF by emailing heretohelp@austincf.org. Our team is here to answer your questions, help you choose an eligible fund option, and coordinate the charitable transfer to suit your needs.
This article is for educational purposes only and is not intended to provide legal, tax or financial advice. QCD rules and limits are subject to change. Please consult your tax, legal and financial advisors regarding your individual circumstances.
