Members of Congress recently introduced bipartisan legislation that would expand giving options for older Americans who want to use funds from their retirement accounts to support churches and ministries. The Charity Parity Act would allow tax-free charitable donations to be made from 401(k), 403(b), and other similar workplace reitrement plans. 

Currently, Americans age 70½ and older can make such qualified charitable distributions (QCDs)—up to $111,000 for the 2026 tax year—from individual retirement accounts (IRAs). They may also be able to count them toward their account’s annual required minimum distribution (RMD). However, employer-sponsored retirement plans generally are not eligible for this treatment, so donors first need to roll over any potential QCD funds to an IRA.  

Reps. Don Beyer (D-Va.) and Mike Kelly (R-Penn.), sponsors of the Charity Parity Act in the U.S. House of Representatives, hope the bill will reduce fees and administrative complexity for donors. Beyer said he anticipates it will “encourage additional giving by providing equal treatment for savers wishing to donate to charity regardless of the type of retirement plan holding their assets.” 

Welcoming the bill, H. Art Taylor, President & CEO of the Association of Fundraising Professionals, said, “Fundraisers work every day to connect generosity with community needs, and the Charity Parity Act removes unnecessary barriers that stand in the way of that generosity.”  

“By allowing seniors to give directly from employer-sponsored retirement plans, this bipartisan legislation modernizes charitable giving and puts donors—not paperwork—at the center of the process,” Taylor added. 

Senators Kevin Cramer (R-N.D.) and Chris Coons (D-Del.) are sponsoring identical legislation in the U.S. Senate.

For more information on how your organization can pursue special gifts like QCDs, explore ECFA’s fundraising resource, “4 Steps to Help Attract Special Gifts for Your Ministry.”