The wall between QCDs (Qualified Charitable Distribution) and Donor-Advised Funds is potentially coming down. When it does, advisors who understand the change will have a significant advantage in serving their RMD-age clients not because they moved fast, but because they planned ahead.
What the Legislation Proposes
In March 2026, Senator Todd Young (R-IN) introduced S.3975 — the IRA Charitable Rollover Facilitation and Enhancement Act of 2026 — with five Senate co-sponsors. While it has not yet passed, the introduction of bipartisan co-sponsorship signals meaningful momentum, and the charitable planning community is paying close attention.
Proposed change: Allow QCDs to flow directly into Donor-Advised Funds.
If passed, it would be the most significant expansion of the QCD since the provision was made permanent in 2015.
This bill would allow the Donor-Advised Fund account to serve as the charitable recipient. This is not a minor technical fix. It eliminates one of the most common frustrations expressed by charitably inclined clients with large IRAs.
What Advisors Should Do Right Now
The bill is in committee, not yet law. But that's precisely why now is the right time to act. Practical steps our team recommends:
Identify clients who would benefit. Review your book for IRA holders age 70½ or older who are charitably inclined, facing RMD obligations, or already using a DAF. These clients have the most to gain.
Open DAF accounts proactively. Once legislation passes, advisors who have accounts established will be ready to act in the same tax year. Waiting until after passage means delays and potentially missing a year of benefit.
Understand the structural rules. QCDs currently require direct transfer from the IRA custodian, the donor cannot receive the funds personally. The DAF expansion will likely carry similar requirements.
Why UI Charitable Is the Right DAF Partner
We're not a large institutional platform where accounts get lost in a queue. Advisors work with a responsive team who knows their clients.
We understand the charitable planning landscape and are built to support the advisor relationship, not compete with it.
We watch changes like this closely and will give you meaningful updates.
Open a DAF account or schedule a time to connect with our team
UI Charitable is a 501(c)(3) public charity. Contributions to Donor-Advised Funds are irrevocable and subject to UI Charitable's policies. This post is for informational purposes only and does not constitute tax or legal advice. Clients should consult their tax advisor.
