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Check from IRA from qualifying donor always warrant a Qualified Charitable Deduction Receipt?

  • 1.  Check from IRA from qualifying donor always warrant a Qualified Charitable Deduction Receipt?

    Posted 12-22-2022 03:01 PM
    Hello,

    Recently, we received a Vanguard check in which the name on the check was listed as:

    Donald Duck
    TRAD IRA VFTC AS CUSTODIAN

    The check was clearly written out and signed by by Donald Duck. Donald Duck is 78 years old and thereby eligible for qualified charitable deductions (QCDs).

    Donald Duck's gift was recorded as an IRA transaction and he received an IRA QCD language receipt from our organization. Donald Duck contacted us upset that we were sending him a QCD language receipt, adamant that he routinely makes donations via checks directly from his IRA and they aren't QCDs.

    My lack of understanding is this: should such a situation always receive a QCD language receipt or is there a circumstance/nuance I'm missing in this situation that would warrant a standard receipt instead? Any guidance would be appreciated and many thanks in advance!

    ------------------------------
    Paul Majnik
    Dep Chief Philanthropy Officer, Adv. Services
    University of Utah
    paul.majnik@admin.utah.edu
    ------------------------------


  • 2.  RE: Check from IRA from qualifying donor always warrant a Qualified Charitable Deduction Receipt?

    Posted 12-22-2022 03:32 PM
    Donors can also write RMD checks. You cannot assume the check was a QCD.

    And CDs do NOT qualify for charitable deductions. They are tax-free withdrawals but cannot be used as a tax-deductible gift.

    I suspect your donor is correct and that this was an RMD. If you have any doubts, call the financial institution and see if they can confirm this.

    John


    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


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