Vanguard - Problem with mailing QCD checks

[goshenBogle]

We did 2 QCDs this year. Using the Vanguard site to issue the QCDs was easy. The problem was how Vanguard addressed the checks and how the address visible in the envelope was interpreted by the post office. The checks were addressed as follows:

Charity name
Charity address
c/o
My name
My address

All of this was visible through the envelope window. The problem is that some of the post office automatic sorting machines did not recognize "c/o" and saw an envelope sent to 2 addresses. This was kicked out by the system and sent to a human who apparently did not know what to do so the checks were returned to Vanguard.

The solution was for Vanguard to send the checks to us via FedEx.

Did anyone else have this problem?

[jebmke]

Not surprised. Did I ever tell you how much I hate the US banking system?

We have had checks go missing -- sent by VG, Fidelity and our bank. They seem to vaporize. Sometimes it is the fault of the recipient that has very low financial controls/discipline.

[delamer]

My Vanguard QCD check was addressed to Charity X at my home address.

Charity X’s address wasn:t in the envelope from Vanguard.

[Rocinante Rider]

When we do QCDs from Vanguard they require only the charity name. We never fill in the charity's address in Vanguard's on-line QCD request form, and Vanguard doesn't ask for the charity's address.

How did Vanguard get the charity address? Did you perhaps mistakenly write-in the charity address as part of the charity "name" when you completed the on-line form?

[Chicken lady]

We send our QCD checks in an envelope that is addressed (not via peek-a-boo window) so we can enclose a note to the receiving charity. You might want to consider spelling out c/o or expressing that is some other way.

[cas]

My Vanguard QCD check was addressed to Charity X at my home address.

Charity X’s address wasn:t in the envelope from Vanguard.

Yes, same here. For the QCDs I helped older relatives do this year, what appeared on the check/in the mailing window was:

Charity name
c/o
tIRA owner's name
tIRA owner's address

The charity's address didn't appear anywhere. I don't recall providing (or being asked for) the charity address when I helped the relatives fill out Vanguard's online QCD request forms, but I don't have screen shots, so my memory could be faulty.

[jebmke]

My Vanguard QCD check was addressed to Charity X at my home address.

Charity X’s address wasn:t in the envelope from Vanguard.

Yes, same here. For the QCDs I helped older relatives do this year, what appeared on the check/in the mailing window was:

Charity name
c/o
tIRA owner's name
tIRA owner's address

The charity's address didn't appear anywhere. I don't recall providing the charity address to Vanguard when I helped the relatives fill out Vanguard's online QCD request forms, but I don't have screen shots, so my memory could be faulty.

Vanguard has no need for the address so they don't request it

[Rocinante Rider]

My Vanguard QCD check was addressed to Charity X at my home address.

Charity X’s address wasn:t in the envelope from Vanguard.

Yes, same here. For the QCDs I helped older relatives do this year, what appeared on the check/in the mailing window was:

Charity name
c/o
tIRA owner's name
tIRA owner's address

The charity's address didn't appear anywhere. I don't recall providing the charity address to Vanguard when I helped the relatives fill out Vanguard's online QCD request forms, but I don't have screen shots, so my memory could be faulty.

Vanguard does not ask for the charity address, they ask only for the charity name. My guess is that OP may have mistakenly written-in the address as part of the name.

[delamer]

My Vanguard QCD check was addressed to Charity X at my home address.

Charity X’s address wasn:t in the envelope from Vanguard.

Yes, same here. For the QCDs I helped older relatives do this year, what appeared on the check/in the mailing window was:

Charity name
c/o
tIRA owner's name
tIRA owner's address

The charity's address didn't appear anywhere. I don't recall providing (or being asked for) the charity address when I helped the relatives fill out Vanguard's online QCD request forms, but I don't have screen shots, so my memory could be faulty.

That was my recollection to and has been confirmed by other posters.

[Chip Munk]

It would be easy for someone to make a mistake and add the charity's address. When filling out the details for the QCD, Vanguard provides 3 lines for the "Charity name" which could lead someone to enter the charity name on line 1, and the charity's address on lines 2 and 3. Hovering over the little "i" next to those 3 text boxes for the charity name brings up this help text:

Enter the name of the qualified charity you wish to make the distribution check payable to. The check will be mailed to the address shown below. Please use the additional fields for a charity name requiring more than one line.

Below those 3 text boxes is an area labeled "Mailing address" that is pre-filled as everyone has described with "c/o" the tIRA owner and the tIRA owner's address.

Bottom line: do not provide the charity's address in those additional text boxes labeled "Charity name".

[coffeehubcap]

It would be easier if Vanguard would send it directly to the charity so we didn't have to pay the USPS to send the check. I think Fidelity does offer that benefit.

[Mozart01]

Easier still if Vanguard allowed check writing to charities out of IRA acounts for QCD (as Schwab does), and easier and probably safer, if such transactions could br done online and avoid USPS and potential paper check loss entirely.

[jebmke]

Easier still if Vanguard allowed check writing to charities out of IRA acounts for QCD (as Schwab does), and easier and probably safer, if such transactions could br done online and avoid USPS and potential paper check loss entirely.

I thought check writing is available. EFT not. Maybe Im mixing it up with Fidelity.

[Rocinante Rider]

Easier still if Vanguard allowed check writing to charities out of IRA acounts for QCD (as Schwab does), and easier and probably safer, if such transactions could br done online and avoid USPS and potential paper check loss entirely.

I thought check writing is available. EFT not. Maybe Im mixing it up with Fidelity.

Yes, I think check writing is availble. If you write the check off of your IRA MMkt fund, however, it won't count as a distribution until the charity cashes it. When VG writes the check, the distribution is credited immediately. For me, having VG write the check and sending it to me works perfectly for record keeping and for certainty about RMD completion and compliance.

I'm not sure that any custodian would do direct transfers of funds from an IRA to a charity's bank account.

[sport]

Easier still if Vanguard allowed check writing to charities out of IRA acounts for QCD (as Schwab does), and easier and probably safer, if such transactions could br done online and avoid USPS and potential paper check loss entirely.

I thought check writing is available. EFT not. Maybe Im mixing it up with Fidelity.

Check writing is available at Vanguard for amounts $250 or more. The checks are written on the settlement fund. So, you need to make sure there is enough money in the settlement fund to cover any checks you write.

[goshenBogle]

It would be easy for someone to make a mistake and add the charity's address. When filling out the details for the QCD, Vanguard provides 3 lines for the "Charity name" which could lead someone to enter the charity name on line 1, and the charity's address on lines 2 and 3. Hovering over the little "i" next to those 3 text boxes for the charity name brings up this help text:

Enter the name of the qualified charity you wish to make the distribution check payable to. The check will be mailed to the address shown below. Please use the additional fields for a charity name requiring more than one line.

Below those 3 text boxes is an area labeled "Mailing address" that is pre-filled as everyone has described with "c/o" the tIRA owner and the tIRA owner's address.

Bottom line: do not provide the charity's address in those additional text boxes labeled "Charity name".

WELLLllllllll That is exactly what we did - put the charity's name + address in the input lines on Vanguard. So our mistake. Will never do that again!!!!!!!!!!!!!!!!!!

[Chip Munk]

The instructions could be more clear, something like "Enter just the name of the charity (3 lines provided). Do not enter the charity's address. The check will be mailed to your address, as shown below."

[michaelingp]

Speaking of check writing, would anyone comment on the risks of writing checks, given the amount of check fraud these days. I'm kind of leery of even having a checkbook with checks drawn from my IRA. If you are the victim of check fraud with a regular checking account, you are unlikely to have to eat the damage, but what about checks drawn on a brokerage IRA? What protections are in place, legal or contractual? Say you write an check to your favorite charity, it gets intercepted in the mail, the check is washed, and paid at the sketchy check cashing place, what is the likely outcome in terms of hassle and financial loss? Is this a risk a hassle-averse person (like me) would take?