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How do I gift Vanguard mutual fund shares to a person or charity?

You can give shares as a gift from many accounts

How can you do this?

Use this process to gift holdings from your Vanguard nonretirement account. The recipient must be an individual, trust, charity or eligible organization. Give shares to an Individual or Organization

How do I take a qualified charitable distribution (QCD) from my IRA

You can sell shares from your Vanguard mutual funds or Vanguard brokerage account by check to donate to a qualified charity. If you are donating from an IRA, it is called a qualified charitable distribution (QCD).

The CARES Act provides a temporary waiver of RMDs for 2020. If you would have had an RMD obligation for 2020, you do not have to take your RMD for 2020 if you don't want to, but you can still make a QCD for 2020.

Taking a QCD from your IRA

Why do this?

  • You may be able to avoid taxes on otherwise taxable distributions if you're drawing from a traditional IRA.
  • A QCD is not subject to ordinary federal income taxes – the amount is simply excluded from your taxable income. In general, QCDs must be reduced by deductible IRA contributions made for the year you reach age 70½ or later. If you've made deductible IRA contributions for the year you turn 70½ or later, consult a qualified tax advisor prior to taking a QCD to determine the amount by which your QCD must be reduced.
  • Your annual Required Minimum Distribution (RMD) may be donated to a qualified charity.

When can you do this?

  • You must be at least 70½ at the time of the distribution. A QCD can be made after age 70 ½ even if you are not subject to RMDs yet (because you are under age 72).
  • If you are donating all or part of your RMD, your distribution must be completed by the RMD deadline.

How can you do this?

  • Confirm that the receiving charity is qualified under Internal Revenue Code § 170(b)(1)(A).
  • You can take a maximum of $100,000 per year in qualified charitable distributions.
  • See how to request your distribution by clicking here.

About taking QCDs for your RMD

  • Up to a maximum of $100,000 of your RMD can be donated to a qualified charity.
  • Your QCD counts towards satisfying your RMD once you reach RMD age.
  • If you have the RMD service, be sure to factor in these donations to avoid distributing more than your annual RMD.