FundSvcs Community

 View Only
Expand all | Collapse all

Vanguard Required Charitable Distribution (RCD)

  • 1.  Vanguard Required Charitable Distribution (RCD)

    Posted 08-30-2022 10:32 AM
    Good morning,
    We received a vanguard check from a donor and the check did not come with any paperwork.  The check states that it is a RCD and provided the donors name in the memo.  The donor is asking for a tax receipt, however, when research vanguard RCD it appears this is tax free money.  I am not familiar with RCD checks and do not know if a tax receipt should be generated or a thank you letter; would the thank you state the amount of the contribution?

    Anyone have experiences with these checks?

    Best,
    Penny

    ------------------------------
    Penny Devins
    Director, Advancement Services & Stewardship
    Northampton Community College
    pdevins@northampton.edu
    ------------------------------


  • 2.  RE: Vanguard Required Charitable Distribution (RCD)

    Posted 08-30-2022 10:38 AM
    I am more familiar with RMDs and QCDs - I have not heard of an RCD.  Are you sure it's not a QCD?

    Yes, QCDs are "tax-free" withdrawals if they meet certain criteria established by the Department of the Treasury.  However, they do receive receipts (reflecting that they represent a Qualified Charitable Distribution (QCD), and the donor still reports these on their return - but not as a tax deduction.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987