Retirees often want to give. The tax-efficient ways differ from working-years giving — RMDs, QCDs, appreciated assets, donor-advised funds open patterns that don't apply during accumulation.
This page covers the tools and the patterns.
The most powerful retirement-specific giving tool.
After age 70.5, you can direct up to $100K/year (indexed to ~$108K in 2025) from your IRA directly to a qualified charity. The amount counts toward your Required Minimum Distribution (RMD) but is excluded from your taxable income.
Without QCD: RMD is taxable income; you pay tax; donate from after-tax money; itemize the deduction.
With QCD: RMD-equivalent goes directly to charity; never on your tax return; you skip the tax bill entirely.
For retirees in higher brackets or those who don't itemize anyway, QCD is dramatically more tax-efficient than donating from after-tax funds.
For most retirees who give, QCD should be the default mechanism.
A charitable account at a sponsor (Fidelity Charitable, Schwab Charitable, Vanguard Charitable, community foundations).
For retirees whose itemized deductions are close to the standard deduction:
Year 1: bunch 5 years of charitable giving into a DAF; itemize that year for big deduction. Years 2-5: take standard deduction; recommend grants from DAF.
Provides the tax benefit of itemizing without giving up the standard deduction in non-bunching years.
For RMD-age retirees: QCD usually wins per dollar. For pre-RMD retirees: DAF (or other taxable-account giving) is the tool.
For retirees with appreciated stock in taxable accounts:
Donate the stock directly. The charity gets the full market value; you avoid capital gains tax; you deduct the full market value (subject to limits).
Compare:
For high-cost-basis stock (low gain), the difference is small. For appreciated stock, donating direct is much better.
A trust that pays income to you (or another beneficiary) for a period, then the remainder goes to charity.
For most retirees, simpler tools (DAF, QCD, direct giving) are sufficient. CRT is for specific high-asset situations.
Reverse of CRT: charity gets income for a period; remainder goes to heirs.
For most: not relevant.
Cluster multiple years' donations into one tax year via DAF; standard deduction in others.
For retirees who are charitably inclined: QCD up to the full RMD amount; never see the income.
Always check: is there appreciated stock in taxable that should be donated instead of cash?
DAF can have successor recommenders. Family continues recommending grants after donor dies.
Some states have charitable deduction conformity issues. Check state-specific implications.
Selling appreciated stock; paying capital gains; donating cash. Worse than direct stock donation.
Charitably-inclined retirees over 70.5 who donate from after-tax accounts when QCD would be cheaper.
Bunching helps; randomly small itemized deductions don't.
CRT for someone who could just use a DAF.
Charitable deductions require receipts; appreciated stock requires appraisal in some cases.
For most retirees who give: