Qualified Charitable Deduction from an IRA

When paying church donations from an IRA as a QCD can you use the Online Donation system or does it need to be a check?

That would be more of a tax-law question, a bit outside of the forum's expertise (and charter).

I'm sure any accountant would be much happier to see the funds go direct from your IRA to the church without making a stopover in a personal account. But there may be legal issues as well. The on-line donation system is designed to work with checking and savings accounts. I think it's via a "ACH" transaction. I don't know if it can work with an IRA account.

I know if the case of stocks, it's possible to donate the stock directly and avoid the capital gains tax. I don't know if that might apply to your situation or not. (And no, that's not done in the on-line system.)

DelHod50 wrote:When paying church donations from an IRA as a QCD can you use the Online Donation system or does it need to be a check?

You cannot use the online donation system to make donations using qualified charitable distributions.

There are instructions for qualified charitable distributions on the LDS Philanthropies site:
https://www.ldsphilanthropies.org/gift-planning/what-to-give/assets/ira-qcd

I directed DA Davidson company to make a qualified charitable distribution to the LDS Church in the amount of [redacted] from my IRA account. DA Davidson sent a letter to me stating that this was done on November 30, 2020. However, as of today I still do not see the contribution posted to my donation history. I am concerned mostly that the Church received it, and secondly I need a record of the contribution for income tax documentation purposes. Can you help me?

[Moderator note: It's best to use hypotheticals when posting to a public forum like this.]

QCDs do not show up in the donation history and will not show up on the annual tax document since QCDs are not actually tax deductible (at least not in the normal sense--rather they don't count as income at all--but tax situations vary so make sure to consult a qualified tax expert on your specifics). However, as stated in the link scgallafent gave, the church will email a “Agency Acknowledgement Letter” acknowledging the receipt of the funds on the 5th of the following month. Since the donation was initiated right at the end of November it probably wasn't received by the church until December so you should get your letter at the beginning of January.

symessc001 wrote:I directed DA Davidson company to make a qualified charitable distribution to the LDS Church in the amount of [redacted] from my IRA account. DA Davidson sent a letter to me stating that this was done on November 30, 2020. However, as of today I still do not see the contribution posted to my donation history. I am concerned mostly that the Church received it, and secondly I need a record of the contribution for income tax documentation purposes. Can you help me?

If you scroll down the page (in the link in the post before yours), you will see an email address and phone number to the church department who should be able to answer your question (look for the paragraphs below the address to send checks to the church for donations).

I'd like to make a QCD from an IRA to one of the items on the donation slip. I know how the taxes work, I just don't know how to be sure it goes to the line item I'd like it to. I've seen a procedure to do this, I think, be cannot find it right now. I do understand that the donation will not show up on the EOY donation summary. I do know that this is one way to reduce my income at tax time and not increase my charitable contribution if I itemize for tax purposes.

nutree wrote: Wed Aug 10, 2022 1:08 pm I'd like to make a QCD from an IRA to one of the items on the donation slip. I know how the taxes work, I just don't know how to be sure it goes to the line item I'd like it to. I've seen a procedure to do this, I think, be cannot find it right now. I do understand that the donation will not show up on the EOY donation summary. I do know that this is one way to reduce my income at tax time and not increase my charitable contribution if I itemize for tax purposes.

Please see scgallafent's post above. I've never used it, but it looks like you specify where the donation goes as part of the process.

nutree wrote: Wed Aug 10, 2022 1:08 pm I'd like to make a QCD from an IRA to one of the items on the donation slip. I know how the taxes work, I just don't know how to be sure it goes to the line item I'd like it to. I've seen a procedure to do this, I think, but cannot find it right now.

The procedure is here at this updated link and is the page that scgallafent provided via an old link in his post earlier. There are complete instructions at that site.

There are two sets of instructions. Use the first set if you are donating to Tithing, Fast Offering, or similar. Use the second set if you are donating to the Humanitarian Fund or other general Church funds. The page specifies all of the available categories and which set of instructions to use.

You will not need a donation slip. You will specify the category as outlined in the instructions at the link.

My IRA custodian does not provide enough space to provide all of the information the Church needs to process the contribution, so I am not able to have them send the check directly to the Church. I have them make out the check to the Church and mail it to me. I then mail the check to the Church along with complete donation information according to the Church instructions.

If your IRA custodian provides enough Memo space, you may be able to have them send the check directly to the Church. But be careful. The Church no longer accepts donation instructions by email or phone.