Tracking Qualified Charitable Distributions (QCDs)
Qualified Charitable Distributions (QCDs) are charitable gifts that may be made directly from an eligible donor's Individual Retirement Account (IRA) to a qualified nonprofit organization. While Eleo does not have a dedicated QCD gift type, you can easily identify and report on these gifts by using a consistent coding method.
Note: This article provides guidance on recording QCD gifts in Eleo and should not be considered tax or legal advice. Donors should consult their tax or financial advisor with questions about their individual circumstances.
Recording QCD Gifts
Even if the check is issued by an IRA custodian or financial institution, such as Fidelity, Vanguard, or Schwab, the gift should be recorded under the individual donor's record, since they directed the contribution.
The financial institution is simply facilitating the transfer and should not be recorded as the donor.
Important: Qualified Charitable Distributions (QCDs) are not the same as Donor-Advised Fund (DAF) gifts.
QCD: Record the gift under the individual donor. The financial institution should not receive a soft credit.
DAF: The gift is typically recorded under the DAF sponsoring organization, with a soft credit given to the individual donor who recommended the grant (if your organization tracks DAF gifts this way).
Use a Consistent Coding Method
Since Eleo does not have a dedicated QCD gift type, choose one method to identify these gifts and use it consistently. Depending on your organization's workflow, you may wish to use:
| Field | Example |
|---|---|
| Campaign | QCD Giving |
| Gift Source | Qualified Charitable Distribution (QCD) |
| Fund | IRA Giving (if your organization tracks gifts by fund) |
| Custom Field | QCD = Yes |
| Tag | Qualified Charitable Distribution |
The specific field is less important than using the same method every time. Consistent coding makes it easy to search for, report on, and communicate with QCD donors.
Add an Internal Note
Consider adding a note to the gift indicating the financial institution that processed the distribution
Example: Received via Qualified Charitable Distribution (QCD) from Vanguard.
This provides helpful context without affecting donor credit.
Reporting on QCD Gifts
Using a consistent coding method allows you to:
- Report on QCD giving
- Identify repeat QCD donors
- Segment donors for future IRA giving communications
- Measure QCD fundraising over time
Acknowledging QCD Gifts
QCD gifts should be acknowledged just like any other charitable contribution.
Your acknowledgment should include:
- Donor name
- Gift amount
- Date received
-
A statement that no goods or services were provided in exchange for the contribution
Example:
Thank you for your generous gift of $1,000 received on March 1, 2026. No goods or services were provided in exchange for this contribution.
Avoid stating that the gift is tax-deductible. Because tax treatment may vary by donor, nonprofits should not provide tax advice. Donors should consult their accountant or financial advisor with questions about the tax implications of their gift.