What documentation do charities provide to IRA owners to prove a qualified charitable distribution?

1. What legally matters: written acknowledgement plus custodian reporting

The core documentation required to substantiate a QCD is twofold: the IRA owner must demonstrate the funds were paid directly from the IRA to an eligible charity (handled by the custodian) and must have written confirmation from the charity showing date, amount, and that no goods or services were provided; tax guidance and practitioner summaries explicitly state donors should obtain such written acknowledgements to support exclusion of the distribution from taxable income ^{[3] [1]}.

2. What charities typically provide: QCD letters and receipts

Many charities now issue a specific “QCD tax acknowledgement letter” or an IRA donation receipt on request that mirrors IRS-friendly language — the transfer date, gross amount received, and a statement that the donor received no goods or services — and some charities post forms or instructions to request these letters (examples: large non‑profits and foundations offering a QCD acknowledgement or a downloadable QCD form) ^{[2] [5]}. Fundraising offices that accept QCDs (e.g., university advancement or national foundations) commonly advertise the ability to produce these letters to ease donors’ tax reporting ^{[6] [7]}.

3. What custodians provide and why it matters

IRA custodians issue Form 1099‑R documenting distributions, and tax guidance instructs taxpayers to report the full distribution but designate the QCD portion so the taxable amount is zero; custodial reporting therefore forms the other half of QCD proof ^{[3] [1]}. Industry reporting notes a new custodial reporting hook — Code Y in Box 7 of Form 1099‑R for distributions that qualify as QCDs — effective for distributions after January 1, 2025, which will make custodian-issued forms clearer and reduce disputes between taxpayers and the IRS ^[4].

4. Thresholds, nuances and inconsistent practices among charities

While standard practice is to supply an acknowledgement upon request, some institutions impose internal thresholds or processes: a custodial guidance form from a trustee warns charities must supply a receipt for donations over $500, suggesting charities and custodians may apply different operational cutoffs for issuing formal receipts ^[8]. Donors should note that not every recipient qualifies for QCD treatment — donor‑advised funds, private foundations and certain supporting organizations are excluded — so charities that funnel gifts into those vehicles cannot provide a valid QCD acknowledgement ^{[9] [7]}.

5. Practical steps to avoid documentation disputes

Best practice is to instruct the IRA custodian to pay the charity directly and, at the time of transfer, request a QCD acknowledgement letter from the recipient that includes date and amount and a statement that no goods or services were received; retain the custodian confirmation/1099‑R and the charity letter together for tax return substantiation ^{[10] [1] [2]}. If a custodian issues a check payable to a donor and the donor delivers it, that route won’t satisfy QCD rules, so insist checks be payable to the charity and coordinate timing to meet year‑end RMD rules ^{[10] [4] [11]}.

6. Where reporting gaps remain and what to verify

Public sources confirm charities provide QCD acknowledgement letters and custodians issue Form 1099‑R, and note the new Code Y reporting change; however, practices vary by charity and custodian, and sources differ on internal receipt thresholds, so donors should verify the charity’s standard QCD acknowledgement format and confirm the custodian will report the distribution accurately ^{[4] [8] [1]}. If a specific IRS receipt threshold or language requirement is needed for a particular situation, those finer points were not uniformly specified in the cited materials and taxpayers should consult their tax advisor or the charity’s gift office for authoritative verification ^{[3] [2]}.