New Data on the Legacy IRA Act Makes the Case for the Charity Parity Act

In advocacy, much like in fundraising, there’s no better feeling than seeing years of taking meetings, building relationships, and crafting a compelling case for support, finally pay off — especially when the positive results are backed by data. 

For the nonprofits who championed the Legacy IRA Act, the 2025 Survey of Charitable Gift Annuities, a report recently released by the American Council on Gift Annuities (ACGA), is evidence that their work was well worth it. 

The report contains some of the first national data since key provisions of the Legacy IRA Act were included in SECURE 2.0 in 2022, allowing individuals age 70½ and older to make a one-time Qualified Charitable Distribution (QCD) to fund a charitable gift annuity or charitable remainder trust.

According to the survey, which included 106 participants representing $1.8 billion in CGA reserves: 

• 74% of responding charities reported completing at least one QCD-funded charitable gift annuity in the past year.
• QCD-funded CGAs accounted for 27% of all new gift annuity activity reported by participating organizations.
• Adoption was especially strong among colleges, universities, and foundations, though charities across multiple subsectors reported utilizing the provision.

Though more research will be needed to demonstrate the full impact, these results are early indications that donors are ready and willing to give from their retirement assets when offered a straightforward, tax-smart way to do it — evidence AFP, ACGA, and others are looking to use in support of our next advocacy priority. 

Building on Success: The Charity Parity Act

The passage of SECURE 2.0’s Legacy IRA provisions was a win, but there is room to expand on the opportunities it has created. 

On May 13, Congressman Don Beyer (D-VA), Congressman Mike Kelly (R-PA), Senator Kevin Cramer (R-ND), Senator Chris Coons (D-DE), Senator Roger Marshall (R-KS), and Senator Mark Warner (D-VA) introduced the Charity Parity Act — bipartisan, bicameral legislation that aims to extend the benefits of the Legacy IRA act to other forms of retirement savings. 

Currently, QCDs must be made from an individual IRA. Millions of older Americans hold their retirement savings in employer-sponsored plans — 401(k)s and 403(b)s — which means to make a charitable gift from those accounts, they must first roll funds over to an IRA, incurring unnecessary costs, fees, and administrative complexity. The Charity Parity Act would eliminate that barrier by allowing direct QCDs from employer-sponsored plans, ensuring that retirement savers are treated equitably regardless of where they hold their assets.

As AFP president & CEO H. Art Taylor put it at the bill’s introduction: “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.”

The bill has earned broad endorsement from across the charitable sector, including the American Heart Association, National Council of Nonprofits, Independent Sector, United Way Worldwide, the National Association of Charitable Gift Planners, and many others — a coalition that reflects just how widely this barrier is felt. The ACGA’s endorsement adds further weight: an organization whose own survey data now demonstrates that when Congress reduces friction on charitable giving, donors act.

The timing matters, too. Recent changes in the tax landscape through the passage of H.R.1 have made QCDs increasingly attractive for senior donors, and the ACGA data suggests that momentum is already building. The Charity Parity Act is an opportunity to ensure no donor is left out simply because of where they saved for retirement.

A Call to Action for AFP Members

AFP members like you helped make the Legacy IRA Act a reality. Now it’s time to build on that work. 

Use the form below to send a message to your representatives encouraging them to support the Charity Parity Act. 

Your voice and your stories are essential to demonstrating the impact this legislation could have in communities across the country. Thank you for your support!