IRA transfer to Donor Advised Fund

[dbrown302]

I intend to transfer stock from my IRA to a DAF.  I understand that this can't be a "Qualified Charitable Deduction", but how IS it characterized for tax purposes?  How should I report it?

I'm using a DAF to support the artificial kidney research of a particular doctor (not him, his research project) and should he leave his current medical center, I want the money to move with the project.

[dmertz · Accepted solution]

With regard to the IRA, it is distribution paid to you.  The contribution to the DAF has no effect on how the distribution is reported on your tax return.  It would be reported the same as if you simply kept the distribution for yourself.

The contribution to the DAF can be claimed as a charitable deduction on Schedule A.  The fact that the funds came from the IRA is irrelevant to reporting the charitable contribution.

[rjs]

In order to claim a tax deduction, you have to make the contribution to an organization that has been authorized by the IRS to receive tax-deductible charitable contributions. A large medical center probably has the necessary IRS authorization. The doctor's research project is probably not an independent organization, separate from the medical center. You could ask the doctor if there is an independent charitable organization that supports his research, separate from the medical center.

[dbrown302]

The donation  will be made to  whatever medical center employs the doctor at the time of the donation.  SO, if he changes medical center employers, the donation  moves with him.

[dbrown302]

That's why I'm designating the DAF, and not the current medical center, as the beneficiary of my estate.