For many estate planning, tax, and financial advisors, the Qualified Charitable Distribution (QCD) is a familiar planning tool: A client age 70½ or older directs a distribution from an eligible IRA to a qualified charity, potentially satisfying all or part of a Required Minimum Distribution (RMD) while excluding the QCD amount from taxable income. 

Even if you regularly advise and assist your clients with QCDs, however, you may not know that a QCD can present an opportunity for a client to establish certain types of funds at Innovia. And yes, under current law, QCDs cannot be made to donor-advised funds. That sometimes leads advisors and clients to conclude that QCDs cannot be used to establish any fund at Innovia. Fortunately, that is not the case! 

Here are three fund types Innovia that generally can receive QCDs if they are structured properly: 

Designated Fund 

A designated fund can provide ongoing support for one (or a few) charitable organizations selected by the donor at the time the fund is established. For example, a client who has faithfully supported a favorite museum, food bank, church, animal shelter, or other nonprofit for decades might use a QCD to establish a fund designed to continue that support over time.  

Area of Interest Fund 

An area of interest fund can support a broader charitable priority rather than a particular organization. For example, a client might establish a fund focused on early childhood education, the environment, the arts, services for older adults, or another area that has been meaningful throughout the client’s life. Innovia then uses the fund according to the charitable purpose the donor has established through its Community Grants Program. 

Unrestricted Fund 

An unrestricted fund can offer clients perhaps the broadest community impact. Rather than identifying particular organizations or causes, the client entrusts Innovia through our Community Grants Program to use the fund to respond to changing community needs and opportunities over time. 

And there are two more pieces of good news: 

— Remember that eligibility for QCDs begins at age 70½, earlier than the typical starting age for RMDs, which for many people is 73. This creates a planning window when QCDs may be useful even for clients who are not yet required to take distributions. For 2026, the inflation-adjusted QCD limit is $111,000 per individual—that’s a tremendous opportunity for impact.  

— New tax rules make QCDs an even more valuable strategy. Because the tax benefit of a QCD comes through the income exclusion rather than an itemized charitable deduction, neither the new 0.5% floor nor the 35% cap applies.  

As you work with charitable clients who are age 70½ and older and own IRAs, please reach out! The team at Innovia is happy to help structure a fund or funds to accomplish each client’s charitable goals.