The Charity Parity Act and AFP Advocacy: The Impact on Fundraising
Posted by [email protected] on Aug. 17, 2026 / Events / Subscribe 0
By: Mojdeh Keykhah, AFP-GPC Board Member and Marketing Committee Co-Chair | Director of Donor Relations, Surrey Services for Seniors
Sally Schaeffer, President of Uncorked Advocates & AFP Global’s Federal Lobbyist, and AFP-GPC Vice President of External Relations Abby Addy, who serves as Director of Development and Corporate Relations at Society for Industrial and Applied Mathematics, were joint presenters in July 2026 of Advocacy in Action: Public Policy, Fundraising, and the Charity Parity Act. It was a high level overview of significant recent Federal legislation impacting fundraisers, including the recently introduced Charity Parity Act. Schaeffer and Addy paired a detailed and clear understanding of legislative developments affecting fundraising with ways in which fundraisers at the grass roots level can get involved. Indeed, Charity Parity Act advocacy is a significant opportunity for fundraisers to help shape the future of the profession.
The Charity Parity Act: A Once-in-a-Generation Chance to Modernize Giving
Between sweeping tax changes, the Great Wealth Transfer, and new federal scrutiny of nonprofit activity, the charitable landscape is being rewritten in real time. But amid all the noise, one proposal stands out as a genuine opportunity for nonprofits to expand generosity, deepen donor engagement, and modernize planned giving for the next generation: The Charity Parity Act.
This pending legislation is a long-overdue update to how older Americans can give from their retirement assets, where they now hold most of their wealth. If fundraisers seize the moment, it could unlock an entirely new universe of charitable donors.
The Retirement Revolution Meets Philanthropy
For decades, charitable giving from retirement accounts has been governed by a simple rule: only traditional IRAs qualify for tax-free charitable rollovers, known as Qualified Charitable Distributions (QCDs). Created in 2006 and strengthened repeatedly since, QCDs allow people aged 70½ or older to give directly from their IRA to charity—without increasing their taxable income.
Congress has expanded this tool again and again. As Sally Schaeffer noted in the recent presentation to AFP-GPC members, “Congress has expanded—not restricted—retirement-based charitable giving for two decades.” QCDs have become one of the most reliable, bipartisan charitable incentives in the tax code.
Currently however, if a donor who is 70½ or older wants to make a QCD gift and they have an employer sponsored retirement plan, they would need to first roll the funds into an IRA. Only then can they make a QCD gift. The Charity Parity Act will remove a huge amount of friction for donors.
Indeed, most Americans don’t hold their retirement savings in IRAs anymore. They hold them in employer-sponsored plans—401(k)s, 403(b)s, and similar accounts. Under current law, none of those assets can be used for QCDs.
What the Charity Parity Act Would Do
The proposed legislation has a great impact:
- Allow tax-free charitable rollovers from employer-sponsored retirement plans, not just IRAs
- Create parity between workplace retirement accounts and IRAs
- Expand the pool of donors who can give directly from retirement assets
- Build on a proven charitable giving tool with a long bipartisan track record
In other words, it updates the rules to match how people actually save today.
Millions of Americans nearing or entering retirement—what demographers call “Peak 65”—hold substantial wealth in workplace plans. Charitable bequests are already surging, with a 16.5% jump last year alone. The wealth transfer is beginning, and the question is clear: Will nonprofits be positioned to receive those assets?
The Charity Parity Act helps ensure the answer is yes.
Why This Matters for Fundraisers
If you’re a fundraiser, this bill isn’t abstract policy. It’s a practical, donor-facing opportunity.
- A Bigger Planned Giving Universe
Currently, QCD conversations only apply to donors with IRAs. The Charity Parity Act expands that audience dramatically, reaching donors who may never roll their workplace accounts into IRAs.
Many longtime supporters have significant retirement savings but no tax-efficient way to give from them. This bill changes that.
QCDs already work. They’re popular, bipartisan, and well-understood. Extending them to workplace plans is a natural next step.
The Bigger Picture: Policy Shapes Generosity
The presentation made clear that policy is now one of the strongest forces shaping donor behavior. From the new universal charitable deduction to floors and caps on itemized giving, fundraisers must understand the rules to guide donors effectively.
The Charity Parity Act fits into this broader moment. It’s a positive, constructive proposal at a time when nonprofits are also facing threat, from new federal grantmaking rules to increased scrutiny of donor privacy and nonprofit activities.
As the presentation put it, “Advocacy isn’t separate from fundraising. It protects it.” Supporting the Charity Parity Act is one way nonprofits can strengthen the environment in which they raise money.
What Happens Next
The bill has multiple paths forward:
- Year-end tax legislation
- A future “SECURE 3.0” retirement package
- A bipartisan tax-corrections bill
- A government-funding agreement
Momentum will come from bipartisan cosponsors, strong nonprofit support, and data showing continued growth in retirement-based giving.
AFP members engaged Congress during Advocacy Week in August, and the Charity Parity Act is one of the top recommended asks. You can learn more and be a part of AFP Global’s efforts here: The Charity Parity Act | Association of Fundraising Professionals.
You can also contact AFP-GPC’s Vice President of External Relations, Abby Addy at [email protected]. Addy sits on the Government Relations Committee of AFP Global in addition to being Vice President of External Relations at the chapter level.
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