2026 QCD Limits Are Here: What Fundraisers Must Tell Donors About the $111K Cap (and the New CGA Option)

The IRS just gave your donors a bigger opportunity, and your job just got more interesting. The 2026 Qualified Charitable Distribution (QCD) limit jumped to $111,000 per individual, up from $108,000 in 2025. For married couples, that's a combined $222,000 they can send directly from their IRAs to your nonprofit without paying a dime in federal income tax.

But here's what makes 2026 different: donors can now use up to $55,000 of that limit for a one-time gift to a Charitable Gift Annuity or Charitable Remainder Trust, getting lifetime payments back while supporting your mission. This is huge for planned giving programs, and most of your donors probably don't know about it yet.

Let's break down exactly what fundraisers need to know (and share) about these updated rules.

What Changed for 2026?

The QCD limit increases annually based on inflation, and this year's bump reflects the continued adjustment. Each individual donor age 70½ or older can give up to $111,000 directly from their IRA to qualified charities. If both spouses have their own IRAs and meet the age requirement, they can each make their own $111,000 QCD, that's $222,000 total for the household.

But the real headline is the split-interest entity option. Starting in 2023 (thanks to the SECURE 2.0 Act), donors could use a one-time, up-to-$50,000 portion of their QCD for a Charitable Gift Annuity, Charitable Remainder Unitrust, or Charitable Remainder Annuity Trust. That limit is also inflation-adjusted, and in 2026 it's now $55,000.

This means your 75-year-old donor could give $55,000 to a CGA through a QCD (receiving lifetime income) and still have $56,000 of their QCD limit left for outright gifts to your annual fund, endowment, or other programs.

The CGA/CRT Option: What Donors Need to Understand

Here's where things get interesting for planned giving officers. Traditionally, donors funded Charitable Gift Annuities or Charitable Remainder Trusts with cash, appreciated securities, or other assets. Now they can use IRA dollars, tax-free, to establish these income-producing arrangements.

The rules are specific:

• One-time only: This $55,000 QCD to a CGA or CRT is a once-in-a-lifetime opportunity per donor. They can't do it again next year or split it across multiple years.
• Annuity payments go to the donor or their spouse only: Unlike a regular CGA where you might name a child or friend as an income beneficiary, the split-interest QCD can only pay the donor and/or their spouse.
• Must be a direct transfer: Just like standard QCDs, the IRA custodian must send the funds directly to the charity (or to the trust). If the donor receives a check and then forwards it, it doesn't count.

For fundraisers, this creates a powerful conversation starter: "Would you like to support our mission while also creating a guaranteed income stream for yourself, without paying tax on the IRA distribution?" That's a compelling value proposition for retired donors sitting on large IRA balances.

Who's Eligible and What Qualifies?

Not every donor can make a QCD, and not every account qualifies. Here's the checklist fundraisers need to communicate:

Age requirement: Donors must be 70½ or older at the time of the distribution. (Yes, that half-year matters: this is an IRS rule.) Note that this is different from the Required Minimum Distribution age, which is now 73 for most people.

Eligible accounts:

• Traditional IRAs
• Rollover IRAs
• Inherited IRAs (if the beneficiary is 70½+)

Not eligible:

• 401(k) plans
• 403(b) plans
• SEP or SIMPLE IRAs (while still receiving contributions)
• Donor-Advised Funds (can't use a QCD to fund a DAF)

Here's the workaround for 401(k) donors: they can roll funds from their 401(k) into an IRA first, then make the QCD. Just make sure they complete the rollover with enough time before December 31 to process the charitable distribution.

Qualified charities: Your organization must be a 501(c)(3) public charity. Private foundations, supporting organizations, and donor-advised funds don't qualify for QCDs.

What Donors Absolutely Cannot Do

The IRS is strict about QCD rules, and violations can cost donors their tax exclusion. Make sure your donors know these critical limitations:

No personal benefit: The donor cannot receive anything of value in exchange for their QCD. That means:

• No event tickets
• No charity auction items
• No gala dinner seats
• No gift premiums or thank-you merchandise

If they want to attend your fundraising gala, they need to buy tickets separately with non-QCD funds.

Direct transfer is non-negotiable: The check or wire transfer must come directly from the IRA custodian to your nonprofit. Many donors want to receive the distribution themselves and then write a personal check: that doesn't work for QCD treatment. The IRA statement must show the charity as the payee.

December 31 deadline: Unlike RMDs (which have some end-of-year flexibility), QCDs must be completed by December 31. There are no extensions. If the check is postmarked December 31 but you don't receive it until January, it still counts for the prior tax year: as long as the IRA withdrawal occurred in that calendar year.

Can't double-dip with itemized deductions: Donors who use a QCD cannot also claim that donation as an itemized charitable deduction on Schedule A. The tax benefit comes from excluding the distribution from taxable income in the first place.

Why QCDs Are More Valuable Than Ever in 2026

Here's the fundraising message you need to emphasize: QCDs offer an "above-the-line" tax benefit that works regardless of whether donors itemize deductions or take the standard deduction.

With the 2026 standard deduction expected to be around $30,000 for married couples filing jointly, many of your donors won't itemize. That means traditional charitable deductions don't reduce their tax bill. But a QCD reduces their Adjusted Gross Income (AGI) before any deduction calculations happen.

Lower AGI creates ripple effects:

• Reduced Medicare Part B and Part D premiums (which increase at higher income levels)
• Smaller portion of Social Security subject to taxation
• Better positioning under the 3.8% Net Investment Income Tax threshold
• Helps donors satisfy Required Minimum Distributions without increasing taxable income

Plus, the 2025 tax law changes created new limitations on itemized charitable deductions: a 0.5% AGI floor and a 35% deduction cap. QCDs bypass those restrictions entirely.

How to Start These Conversations This Month

January is prime time for QCD conversations. Your donors' IRA custodians are sending out year-end statements, and tax-planning is top of mind. Here's your fundraiser action plan:

1. Segment your donor list: Identify supporters age 70 or older (or approaching that milestone). These are your QCD prospects.

2. Create simple educational materials: A one-page flyer explaining the $111,000 limit and the $55,000 CGA option. Keep it jargon-free and focused on benefits.

3. Train your team on the direct transfer requirement: Everyone who answers phones or responds to donor emails needs to know: "The check must come directly from your IRA custodian to us. We'll provide our EIN and mailing information to give to your financial advisor."

4. Provide IRA custodian instructions: Draft a template letter or email donors can forward to their IRA administrator. Include your nonprofit's legal name, EIN, mailing address, and contact information.

5. Highlight the CGA option for high-capacity donors: If you have a planned giving program that offers CGAs, this is the year to promote them. A 75-year-old donor can lock in a 6.2% lifetime payout rate (based on current ACGA rates) using tax-free IRA dollars.

6. Set a mid-December deadline: Don't wait until December 28 to remind donors about the December 31 cutoff. IRA custodians need processing time. Tell your donors to initiate QCDs by December 15 to ensure completion.

The 2026 QCD limits give your donors more flexibility and more tax savings. Your job is to make sure they know about it: and that you've made it ridiculously easy for them to take advantage of it. Get your messaging out early, train your team thoroughly, and prepare for what could be your best QCD year yet.

Need help building out your QCD marketing campaign or setting up gift annuity illustrations? Check out our planned giving resources for templates and training that'll get you up and running fast.