QCD – Stock vs. Cash

Submitted by Tracy Hawbaker on Wed, 2023-11-29 18:37

We have a client that wants to donate from his IRA to a charity. He meets the criteria for a QCD. Can he gift shares of stock from his IRA to the charity? If so, is there any benefit to doing that versus making a direct cash donation to the charity?



Submitted by Alan - IRA critic on Thu, 2023-11-30 00:17

  • There is no requirement for a QCD to be in cash, but the advantage of donating appreciated stock shares from a taxable account totally disappears if the donation is from an IRA because IRA holdings do not have cap gains or a cost basis less than their actual value. With no advantage to the client, the QCD should just be made via check in the usual manner. Actually, many smaller charities may not even have brokerage accounts set up to receive donations of shares. 
  • That said, a QCD may not be preferable to a donation of appreciated shares from a taxable brokerage account depending on the situation. But only from the brokerage account.


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