QCDs, How much is give using QCDs

[Time2]

I was looking to see how much is actually given to charities using the Qualified Charitable Distributions. I have went pretty deep in the search and have not found an answer. I used the search string below, does anyone have this info?

"What is the total amount of money given using the tax-free qualified charitable distribution?"
Thanks

 

[cathy63]

I'm not sure anyone can know that number. It either has to come from the recipients, the senders (brokers), or from the IRS.

If a charity gets a check from a broker, it's just money. They wouldn't necessarily know whether it's a QCD or just a check written on an ordinary brokerage account.

Brokerages are in the best position to have this info, but they don't seem to publish these types of stats.

On the IRS' side, you can either choose to deduct the QCD on Sched A as a charitable contribution, or you can just not include it on line 4b of your 1040 and write "QCD" next to it. I don't see how the IRS would recognize that the Sched A deductions were QCDs except via an audit, and I don't think they have any automated way of detecting or reporting on notes on a 1040.

 

[OldShooter]

... "What is the total amount of money given using the tax-free qualified charitable distribution?"
Thanks

... Brokerages are in the best position to have this info, but they don't seem to publish these types of stats. ...

Cathy is probably right on brokerages being the best source. Maybe call your broker and ask him/her how often they see clients using QCDs. Use that to make a guess. Curious: Why do you want to know?

To us it's a no-brainer. Schwab gives us QCD check blanks and we pay everything from public radio memberships to $5K or $10K donations. There's really no downside AFIK.

 

[RunningBum]

What would you do with this information?

 

[braumeister]

From Fidelity:

In 2021, Fidelity Charitable made $10,274,228,521 in donor-recommended grants, a 41% increase from pre-pandemic levels and 13% increase from 2020.

I'm sure the other brokerages that have Donor Advised funds can tell you their numbers as well.

 

[Golden sunsets]

I don't understand the Op's question.

A QCD comes out of an IRA only and is only allowed after you turn your RMD age. 100% of it goes from your IRA to the charity. It is not shown on Schedle A but is part of your Required Minimum Distribution that is not taxable, so your 1040 is either adjusted by you to reduce your total RMD by the amount of your QCD's for the year, or by your tax preparer. The instructions are very clear.

The charity typically knows that the check is a QCD because the broker includes an explanatory letter with the check informing the recipient of the donor and their address. A copy of the letter is also sent to the IRA holder for their records.

Edit: I guess I now understand the OP's question. I think it is used pretty extensively by those of RMD age. Like others, I wonder why it matters.

 

[braumeister]

I don't understand the Op's question, nor do I understand the one response above.

Yes, sorry I gave DAF amounts instead of QCDs. Temporary brain fart in my case.

Since QCDs have an annual cap of $100K, the total should be much less than DAF donations.

 

[Time2]

What would you do with this information?

On other forums I see many comments that rich people are stingy, I'm compiling evidence to counter that idea. It's not enough to say the top 25% paid 87% of all Federal income taxes.
I'm sure, I'll gain few converts with data, but at least they will see the info.


Please don't turn this political, I'm already walking on eggs.


In fact if the admin wants to shut this down now, I think I have learned the info I was looking for, will be difficult if not impossible to get.
Thanks

 

[OldShooter]

... A QCD comes out of an IRA only and is only allowed after you turn your RMD age. ...

IIRC the two ages are specified separately but were coincidentally the same until the RMD age was pushed out. The QCD age remains 70 1/2. https://www.irs.gov/publications/p590b

 

[marinauser]

Blurb from Schwab:

Since our founding in 1999 as an independent 501(c)(3) public charity, Schwab Charitable donors have granted more than $22 billion to more than 206,000 charities. You can learn more about this impact in our Giving Report.

 

[cathy63]

... A QCD comes out of an IRA only and is only allowed after you turn your RMD age. 100% of it goes from your IRA to the charity. It is not shown on Schedle A but is part of your Required Minimum Distribution that is not taxable, so your 1040 is either adjusted by you to reduce your total RMD by the amount of your QCD's for the year, or by your tax preparer. The instructions are very clear...

QCDs can start when you are age 70 1/2. RMDs now start at age 72, so you are allowed to make a QCD prior to reaching RMD age.

Also, it's optional whether you take it as a charitable deduction on Sched A or use the QCD on lines 4a/b of the 1040. I can't think of a case where it would be more advantageous to take the deduction, but you can if you want.

 

[OldShooter]

... I can't think of a case where it would be more advantageous to take the deduction, but you can if you want.

Neither can I. By moving our charitables to QCDs, we became able to take the standard deduction, which gave us over $10K of "free" deductions. Easier to fill out the tax forms too.

 

[harllee]

I don't know the totals of QCDs and I don't know how you would find that out and why you would want to know. But I can tell you that DH and I make substantial charitable gifts each year and that since turning 70.5 we are making almost all of our charitable gifts from our IRAs. Much more tax advantageous for us to make the gifts from our IRAs.

 

[friar1610]

Neither can I. By moving our charitables to QCDs, we became able to take the standard deduction, which gave us over $10K of "free" deductions. Easier to fill out the tax forms too.

Another advantage: the QCD reduces your MAGI and, if used properly, can help you avoid going to the next IRMAA bracket.