Support Bipartisan Legislation to Strengthen Charitable Giving

Indiana Philanthropy Alliance is proud to help lead public support for the IRA Charitable Rollover Facilitation and Enhancement Act, bipartisan legislation led by Senator Todd Young (R-IN) and Senator Michael Bennet (D-CO).

This bill would allow Qualified Charitable Distributions (QCDs) from IRAs to be directed to Donor-Advised Funds (DAFs), removing a longstanding restriction that limits how retirees can structure their charitable giving. The proposal reflects years of engagement among IPA, our members, and federal policymakers to modernize charitable law in ways that strengthen Indiana’s philanthropic infrastructure.

IPA will be listed as a supporting organization at the bill’s introduction. We invite foundations to join the official sign-on list to demonstrate the collective voice of our philanthropic sector and support this important policy advancement

Why This Matters for Indiana Foundations

Empowering Indiana’s Community Foundations

Indiana’s community foundations serve as permanent stewards of local philanthropy, yet current tax law creates a participation gap. While older donors can direct Qualified Charitable Distributions (QCDs) to certain charitable entities, they cannot use them to fund donor-advised funds that support long-term, strategic giving. Allowing QCDs to flow into DAFs enables community foundations to better serve retiring donors who want to structure multi-year commitments and sustained community investments.

Capturing the Transfer of Wealth

Indiana is poised to experience a significant intergenerational transfer of wealth in the coming decade. This legislation provides a practical tool to help keep charitable capital local. By enabling retirees to direct IRA distributions into structured philanthropic vehicles, foundations can encourage endowed and long-term giving that strengthens county-level resilience and supports future generations.

Supporting Family Philanthropy

Many philanthropic families utilize both private foundations and donor-advised funds to advance their mission. Because current law does not permit QCDs to private foundations, this proposal offers families an additional pathway to direct IRA distributions into mission-aligned charitable funds housed at community foundations. This flexibility supports continuity in family giving while maintaining compliance with federal charitable rules.

Simplifying Legacy and Succession Planning

As family foundations navigate leadership transitions or consider long-term sunset strategies, this legislation offers an orderly transition option. Retiring leaders could direct IRA assets into an endowed DAF at a local community foundation, preserving philanthropic intent while reducing administrative and compliance complexity.

Enhancing Charitable Flexibility

For donors navigating Adjusted Gross Income (AGI) limitations and other tax considerations, donor-advised funds can provide a flexible structure for organizing charitable activity. Allowing QCDs to be directed into DAFs ensures that charitable distributions can be deployed efficiently and strategically to support Indiana communities.

Questions?

If you would like additional background or have policy questions before signing on, please contact:

Maddison Miller
Vice President, External Relations
mmiller@inphilanthropy.org
(317) 630-5200 x102

Add Your Organization as a Supporting Signatory

IPA is coordinating Indiana-based organizational support ahead of the bill’s formal introduction (anticipated the week of March 2).

If your organization would like to be listed publicly as a supporting organization in press materials, please complete the form below by February 19.

We will share the final list with Senate staff prior to introduction.

Sign-On List

Organization Name (as it should appear publicly) *

Primary Contact Name and Title *

Contact Email *

Optional: short quote (1–2 sentences) in support of the legislation

Confirmation that your organization approves being listed publicly *

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