August is a great month to plan for an IRA gift to charity in 2026. Owners of traditional IRAs who are over 70½ may be considering a charitable gift before the end of this year. The IRS refers to an IRA charitable rollover gift as a qualified charitable distribution (QCD). If you are age 73 or older, a QCD may fulfill part or all of your required minimum distribution (RMD) for this year.

It may take your IRA custodian some time to process a QCD, and it must be completed by December 31. During 2026, an IRA owner may give up to $111,000 directly from the IRA custodian to a qualified nonprofit. Another QCD option is a one-time gift of up to $55,000 for a charitable gift annuity (CGA), charitable remainder unitrust (CRUT) or charitable remainder annuity trust (CRAT).

1. Direct IRA Charitable Rollover to Charity — A traditional IRA owner may contact his or her IRA trustee to start the process for a QCD. While your distributions from a traditional IRA are normally taxable, the QCD payouts will be tax-free as long as they are paid directly to a qualified nonprofit. The QCD is made through a check payable to the charity. The IRA owner must be age 70½ or over and the 2026 limit is $111,000. If spouses are both over age 70½, then the $111,000 per person limit may allow a couple to distribute up to $222,000 this year to charity. Because the QCDs are not taxable, there is no charitable deduction.
2. IRA Rollover to Life Income Plan — A traditional IRA owner may contact his or her IRA trustee to make a QCD up to $55,000 for a CGA, standard CRUT or CRAT. The gift annuity or charitable trust must pay 5% or more to the IRA owner, their spouse or both. While the $55,000 payout for a gift annuity or charitable trust is not taxable, the annuity or trust payouts will be taxable income.
3. How to Report Your QCD — Your QCD must be reported on your 2026 federal income tax return. You can expect to receive an IRS Form 1099-R from your IRA trustee. This will show the traditional IRA distribution in Box 1. You must report the IRA distribution on your IRS Form 1040 Line 4a (Gross distributions). Enter $0 on Line 4b (Taxable amount) if the entire distribution was a QCD. If only part of it was a QCD, subtract the charitable amount and enter the remaining taxable balance. You must enter "QCD" on Form 1040.
4. How to Receive a QCD Acknowledgment — Your QCD is not deductible as a charitable contribution. However, with a direct IRA charitable rollover you are required to obtain a written QCD acknowledgment from the nonprofit prior to filing your return. This acknowledgment should state the date and amount of the QCD and indicate that the donor has received "no goods or services in exchange for the gift." You should retain the acknowledgment with your other tax records.

Editor's Note: Many individuals will fulfill part or all of their RMD this year through a gift to charity from a traditional IRA. If a donor has the right to make distributions from his or her traditional IRA through a checkbook, it will be important to send the check directly to the charity. Please allow sufficient time for the charity to deposit the check and for the financial institution to process the check. This process must be completed by December 31, 2026.