Q&A: How Should We Handle a Retirement Account Donation?

Update: A provision in the SECURE Act, passed late in 2019, increases the age when required mininum distributions must be made from age 70½ to age 72, For more on this and five other provisions, see“Six Provisions from the SECURE Act Offer Greater Incentives to Save For Retirement” by attorney Richard Hammar.

Our church received a check made directly from a member’s retirement account for church general operation needs. Should our church issue a tax-deductible contribution receipt to the donor or just give the acknowledgement for receiving the check?

This is a fairly common occurrence for distribution of IRAs. It is known as a qualified charitable distribution (QCD).

Individuals over 70½ are able to direct their IRA custodian to make a distribution directly to a church or charity. Churches and donors must understand that there would be no benefit to having the ...