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A Donor-Advised Fund (DAF) and an IRA/Qualified Charitable Distribution (QCD) are similar in that both are ways for donors to contribute to charity, but they are not the same. Here’s how they differ:

Donor-Advised Fund (DAF):

• A DAF is a charitable giving account set up by the donor at a financial institution, where they can make contributions and then recommend grants to qualifying charities over time.

• The donor funds the DAF with cash, stocks, or other assets, and can recommend grants to any charity in good standing with the IRS.

• Donors can use the DAF for multiple charitable gifts over time, and contributions to the DAF are tax-deductible at the time the money is contributed.

IRA/Qualified Charitable Distribution (QCD):

• A QCD allows IRA account holders (age 70½ or older) to donate directly from their IRA to a qualifying charity, up to a certain limit, while fulfilling their Required Minimum Distribution (RMD) requirement.

• The amount donated is excluded from taxable income, providing a tax benefit, but it can only be a direct transfer from the IRA to the charity.

• QCDs cannot be made to a DAF or other donor-advised accounts—the donation must go directly to the charity.

Key Differences:

• DAF is a donor-controlled fund where they can recommend grants over time, while QCD is a direct donation from an IRA to a charity that meets IRS requirements for RMDs.

• A QCD offers tax benefits specifically for IRA holders, while DAF donations offer flexibility for future charitable giving.

To help the donor give through their Donor-Advised Fund (DAF), provide the following information:

1. Make the gift payable to Reliant, and include your Fund Number in the designation/memo line.

2. If the foundation requires it, provide Reliant's Federal ID Number (FEIN/EIN): 52-1707002

3. A letter from the foundation is often sent on behalf of the donor, including the donor's contact information. This helps us ensure the donation is properly processed and the donor's info is entered into our system.

4. Finally, give the donor Reliant's mailing address for the foundation to send the gift:
   Reliant
   11002 Lake Hart Dr, Ste 100
   Orlando, FL 32832

This ensures a smooth and accurate process for DAF donations.

An IRA/Qualified Charitable Distribution (QCD) is a direct transfer of funds from an IRA (Individual Retirement Account) to a qualified charity, like [Company Name]. This type of donation has special benefits:

• The donor can avoid paying taxes on the amount donated.

• The donation counts towards their Required Minimum Distribution (RMD), which is the amount they must withdraw from their IRA once they reach a certain age.

• QCD donations must be made directly from the IRA to the charity. The donor cannot receive the funds first, and then donate them.

This is a great way for eligible donors (typically 70½ years or older) to contribute to charity while reducing their taxable income!

For foundation gifts, the donor's name will not appear directly on the donation record. Instead, the gift will show up under the foundation’s name because Reliant does not issue a receipt to the donor. However, we will soft credit the donor for our internal records.

The foundation will send the donor a receipt for their contribution.