One way to make all of your contributions with one distribution is to
go through a donor advised fund, such as the Fidelity Charitable Gift
Fund. You can make your QCD to this qualified 503(c) charity, and it
will make grants to the charities you specify on the dates you
request. Fidelity Charitable is at
pretty sure there are other similar funds.
I have used Fidelity Charitable for a few years now, and it works very
well. I make both scheduled (monthly or quarterly) and unscheduled
(one time only) gifts to about 8 charities.
Dave Dodson writes:
It's also a nice way to be able to get a charitable deduction
for donations of appreciated securities (and so get the double
tax benefit) and be able to make donations to organizations that
either aren't set up to take donations of appreciated securities
or have a lot of red tape around doing so.
I know, I need to find the citation. It was my understanding that the
Fidelity/Schwab type charitable funds are now allowed for use in the
Charitable IRA distribution. The IRA distribution must be made to the
real end charity.
You are right, Rich, these are great for the cap gain issue.
Rich Carreiro writes:
[Frank asked about how many "qualified charitable distributions"
he can make from his IRA]
Rich and Dave are both right that Fidelity Charitable Gift
Fund is a great way to make charitable contributions with
minimal fuss and especially as a vehicle for doing so with
However, unfortunately for Frank, the law that allows the
Qualified Charitable Contributions directly from IRAs
explicitly excludes donor-advised funds.
QCDs must be made directly from the IRA to a qualifying
charity. You must be (as Frank is) over 70-1/2. The
contributions are limited to $100,000. And they cannot
be made to a donor-advised fund.
Any distributions made from an IRA - including the QCDs -
will be reported on your 1099-R. I don't know if the
final instructions for 2011 QCDs have been written up,
but presumably they'll be pretty much identical to the
ones from 2010:
As far as I know, (back to Frank's question), there is no
limit to the number of actual distributions you make so
long as the total of the QCDs adds up to less than $100k.
You do the subtraction of the total of the QCDs yourself
(for the 2010 taxes, on line 15 of your 1040, you put
into 15a the full total of your IRA distributions (QCD
or not) and the taxable amount -- which calculation may
or may not involved your 8606 (if you had any non-deductible
money in your IRA) into line 15b. If you had QCDs, you
write "QCD" next to line 15b. (Not sure how such notes
written next to something get transmitted when electronically
filing - Rich?)
Anyway, yeah - donor-advised funds are great - but they
won't work for QCDs.
David S. Meyers, CFP(R)