Understanding the Difference Between Qualified Charitable Distributions (QCDs) and Donor-Advised Funds (DAFs)
In the realm of charitable giving, two strategies stand out for their tax-saving benefits and flexibility: Qualified Charitable Distributions (QCDs) and Donor-Advised Funds (DAFs). While both offer compelling advantages, they differ in their mechanics, eligibility requirements, and control over charitable disbursements. Understanding these nuances is crucial for determining the most suitable approach for your philanthropic endeavors. What is a Qualified Charitable Distribution (QCD)? A Qualified Charitable Distribution (QCD) is a direct transfer of funds from an Individual Retirement Account (IRA) directly to a qualified charity....