Congress has permanently extended a popular tax-advantaged giving opportunity. The new law allows individuals who are age 70½ or older to make gifts of up to $100,000 directly from their IRA account to one or more qualified charities, without paying federal income tax on the withdrawal. The extension was made retroactive to Jan. 1, 2015.
Donors who have an IRA and are fulfilling and existing pledge, or wish to make a gift to benefit the campus, college or program of their choice, may want to make a qualified charitable distribution.
Here are the specifics:
- Donors must be age 70½ or older at the time the gift is made.
- Only traditional IRAs are eligible.
- Donors must request a direct transfer of funds from their plan administrator to a qualified public charity. It is important to not withdraw funds prior to a gift.
- Gifts cannot be made to a private foundation or to a donor advised fund.
- Gifts cannot be used to fund a gift annuity or charitable remainder trust.
- Each donor may give up to $100,000 per year. For couples, each spouse can give up to $100,000.
- Distributions made under this law can be used to satisfy the donor’s required minimum distribution (RMD).The rollover allows for a charitable gift to fulfill the RMD without adding to tax liability.
To make a gift to UMD from an IRA, donors should contact your IRA plan administrator and request a direct Qualified Charitable Distribution from their IRA account to the University of Minnesota Foundation, a 501(c)(3) organization, with Tax ID number 41-6042488, and have the check mailed to the following address:
University of Minnesota Foundation
Attn: IRA Gift Processing
200 Oak Street SE, Suite 500
Minneapolis, MN 55455
Donors are asked to contact Tricia Bunten at 218-726-6995 to inform UMD of the gift and to offer instructions on how it should be directed (the specific college, program or fund).