Qcd checks

Submitted by Maria Difalco on Thu, 2017-05-18 01:13

Alan: I can’t believe this! A few weeks ago I wrote re: qcd checks stating “FBO”/me and we were in agreement that this negated the purpose of Qcd.
I voided the checks and returned them to the insurer with a request they use either ‘donor’ or ‘on behalf of’. Checks arrived today. My request was totally ignored and they wrote ‘c/o’ on checks. Am I wrong in thinking that this is the same as ‘fbo’?. The letter very clearly stated why ‘fbo’ could not be used. I await your reply. If I have to contact them again, then it will be to corporate office.

Thanks,

mbd



Submitted by William Tuttle on Thu, 2017-05-18 01:50

  • Alan and Benn who are the experts, were NOT in agreement with me. They both stated that FBO did not invalidate the QCD. Alan also provided the reference backing his position. Go back and read their responses.
  • Also c/o (Care of), implies no receipt by you. It merely indicates that you will ensure the charity receives the check.

Submitted by tomd37 on Thu, 2017-05-18 03:22

For at least the last three tax years of doing QCDs, Vanguard has issued about eight checks each year made out to the designated charity on the first line and then c/o me and my address on the next three lines and mailed those eight checks to me.  I then send them on to the charity under a cover letter indicating a memorial contribution in memory of a loved one.  I have never had any issues with that process and get an acknowledgment letter within a month.  Tom D.

Submitted by Ben Meyer on Thu, 2017-05-18 16:34

Showing C/O sounds like the best yet.  That means that the check can only be cashed or deposited by the charity, but it is being mailed to the IRA owner.  The disbursing institution probably wants to send the check only to the address of the IRA owner, as a security measure.  They also need to show the name of the IRA owner when addressing anything to that address, to assure that the mailman knows that it is proper to deliver it.  This will also allow the IRA owner to forward the check to the charity with an appropriate note or form to accompany the donation.  It also helps the charity to record the donation with the donor’s correct address. 

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