“But who am I, and who are my people, that we could give anything to you? Everything we have has come from you, and we give you only what you first gave us!” (1 Chronicles 29:14, NLT)
Most of the retirees I meet with are already generous. They tithe faithfully, they support ministries they believe in, and they want their giving to reflect what God has entrusted to them.
But when I look at how they're actually funding those gifts, I usually find the same pattern. They pull money from their IRA, pay taxes on the distribution, and then write a check to their church from what's left. It works. It's just not the most efficient way to give.
If you're 70½ or older and charitably inclined, a Qualified Charitable Distribution, or QCD, is one of the more overlooked tools in retirement planning. It lets you give directly from your IRA to your church or another qualified charity without ever counting that money as taxable income.
What Is a Qualified Charitable Distribution?
A QCD is a direct transfer of funds from your IRA to a qualified 501(c)(3) organization, such as your church. The money moves straight from your IRA custodian to the charity. It never passes through your hands, and it never shows up as income on your tax return.
To use a QCD, you need to be at least 70½ years old and have funds in a traditional, rollover, or inherited IRA. For 2026, you can give up to $111,000 per year through QCDs. Married couples who each have their own IRA can give up to $222,000 combined, since the limit applies per person.
The gift has to go straight from the IRA to the charity. If the check comes to you first and you deposit it before writing your own check to the church, it no longer qualifies.
Why Most Retirees Are Doing This the Hard Way
Here's the pattern I see most often. A retiree takes a distribution from their IRA to cover living expenses and giving. That distribution gets added to their taxable income for the year. Then, out of their checking account, they write tithe checks and support other ministries.
The problem is that most retirees today don't itemize their deductions. Since the standard deduction nearly doubled a few years back, the majority of households take the standard deduction rather than itemizing. That means all that generous giving isn't reducing their tax bill at all. They paid tax on the IRA distribution, then gave the money away, and got no tax benefit for the gift itself.
A QCD sidesteps this problem entirely. Instead of the money being added to your income and then given away, it's excluded from your income in the first place. You don't need to itemize to benefit. The tax advantage happens automatically, simply because the dollars never touch your return as income.
How a QCD Changes the Math
Say you're required to take $40,000 out of your IRA this year, and you typically give $15,000 to your church and a couple of other ministries. Under the old approach, all $40,000 counts as taxable income, and your giving comes out of already-taxed money.
Direct $15,000 of that distribution to your church and other charities as a QCD instead, and only $25,000 counts as taxable income. Your church still receives the full $15,000. You simply never pay tax on it.
For someone in a 22 percent federal bracket, that's roughly $3,300 in tax you no longer owe, just by changing how the gift moves rather than how much you give.
The QCD and Your RMD
QCDs and required minimum distributions, or RMDs, are connected but not identical, and the distinction trips people up.
You can start making QCDs at 70½. RMDs, on the other hand, don't kick in until age 73. That creates a window of a couple of years where you're eligible to give through a QCD even though you're not yet required to take anything out of your IRA.
Once RMDs begin at 73, QCDs count toward satisfying that year's required distribution. If your RMD is $30,000 and you give $15,000 through a QCD, you've cut your required taxable withdrawal in half. You still have to take the remaining $15,000 as a normal distribution, but the portion given to your church never touches your taxable income.
Giving through QCDs before your RMDs start doesn't reduce your taxes that year, but it does shrink your IRA balance. A smaller IRA balance means smaller RMDs down the road, which can matter quite a bit if you're trying to manage your tax bracket in later retirement.
A Few Rules to Keep in Mind
QCDs come with some guardrails worth knowing before you get started.
The distribution has to come from an IRA, not a 401(k), 403(b), or other employer plan. If most of your retirement savings sits in an old 401(k), you may need to roll a portion into an IRA first to take advantage of this strategy.
The gift also can't go to a donor-advised fund or a private foundation. It has to go to a public charity, which includes most churches and ministries. And you'll want a receipt from your church confirming the gift, the same as you would for any other charitable contribution, in case the IRS ever asks.
Your IRA custodian typically has its own paperwork for initiating a QCD, so it's worth calling ahead of your RMD deadline rather than trying to rush one through in late December.
A One-Time Opportunity for a Larger Legacy Gift
There's a lesser-known provision worth mentioning if you're thinking about a larger, longer-term gift. Since 2023, retirees have had a one-time option to direct a QCD of up to $55,000 in 2026 toward a charitable gift annuity or charitable remainder trust.
This is a use-it-once option, not an annual one, and it comes with strict rules about how the trust or annuity can be funded afterward. It's not the right fit for everyone, but for a retiree looking to set up an income stream for themselves while eventually leaving the remainder to their church or a ministry, it's worth a conversation with your advisor.
Giving as Worship, Not Just Tax Strategy
None of this changes why you give. A QCD is a mechanism, not a motive. Scripture is clear that giving flows out of gratitude for what God has already provided, not out of a search for a better deduction.
“You must each decide in your heart how much to give. And don't give reluctantly or in response to pressure. 'For God loves a person who gives cheerfully.'” (2 Corinthians 9:7, NLT)
What a QCD does is remove some of the friction between your intention and your gift. More of what you set aside for your church goes to your church, rather than a portion of it going to taxes along the way. That's good stewardship of what God has entrusted to you.
Organizations like Crown Financial Ministries have written extensively on the biblical principle that everything we hold, including our retirement accounts, belongs to God first. We're simply managing it well on His behalf. The National Christian Foundation offers similar resources for retirees and business owners looking to think biblically about generosity, including how tools like QCDs fit into a broader giving plan.
This is also the kind of question that Kingdom Advisors trains financial professionals to walk through with clients. The organization's Certified Kingdom Advisor (CKA®) program exists specifically to help advisors integrate biblical wisdom into practical planning decisions like this one. The Ron Blue Institute has done similar work, publishing biblical financial planning resources that treat generosity as a discipline to be planned for, not an afterthought once the tax return is done.
If tithing and giving are already part of your financial life in retirement, a QCD is worth a conversation with both your advisor and your tax preparer. It's one of the few places in the tax code where good stewardship and good tax planning point in exactly the same direction.
This is one small piece of a bigger picture—see our guide to biblical financial stewardship for the fuller framework, or read more in our FAQ on how much Christians should give.
Frequently Asked Questions About Qualified Charitable Distributions
Who is eligible to make a QCD?
You must be at least 70½ years old and have funds in a traditional, rollover, or inherited IRA. QCDs are not available from active 401(k) plans, 403(b) plans, or other employer-sponsored retirement accounts.
What is the QCD limit for 2026?
The limit for 2026 is $111,000 per individual. A married couple can give up to $222,000 combined, provided each spouse has their own IRA and stays within their individual limit.
Does a QCD count as a tax deduction?
No. A QCD isn't a deduction. It's an exclusion from income. The distributed amount simply never appears on your return as taxable income, which means it helps you even if you take the standard deduction and don't itemize.
Can I make a QCD to my church's general fund or building fund?
Yes, as long as your church qualifies as a 501(c)(3) public charity, which most churches do. The gift needs to go directly from your IRA custodian to the church, not through your personal account.
Can I do a QCD from a Roth IRA?
Technically yes, but it rarely makes sense. Qualified withdrawals from a Roth IRA are already tax-free, so there's no tax benefit to routing them through a QCD. QCDs are most valuable with traditional, rollover, or inherited IRAs, where withdrawals would otherwise be taxable.
Does a QCD count toward my required minimum distribution?
Yes. Once you turn 73 and RMDs begin, any QCD you make during the year counts toward that year's required amount, up to the annual QCD limit.
How do I actually set one up?
Contact your IRA custodian and ask about their process for a Qualified Charitable Distribution. Most require a form specifying the charity and amount, and some will send a check directly to your church on your behalf. Give yourself a few weeks of lead time, especially if you're trying to complete it before December 31.
Is there a downside to using a QCD instead of writing a check?
Not really, as long as you follow the direct-transfer rule. The main things to watch are making sure the funds move custodian-to-charity rather than through your own account, and making sure the receiving organization is an eligible public charity rather than a donor-advised fund.
Josh Salway is a financial advisor and founder of Full of Grace Financial, and a Certified Kingdom Advisor (CKA®), helping Christian families and business owners align their faith with their finances. This article is for informational purposes only and is not intended as tax or legal advice. Please consult your tax advisor or CPA regarding your specific situation.