IRA Charitable Gifts
At the end of 2019, a tax law passed that slightly altered the IRA rules, increasing the required age to take a minimum distribution from your IRA from age 70 ½ to age 72. However, for donors who wish to make an IRA rollover gift to one of CFCG’s endowment or designated funds or to a charity, the rules for IRA charitable rollovers were not changed and the 70 ½ age limitation still applies, and has not been changed to age 72.
Update for 2020: Through the CARES Act, Congress has waived the requirement for a RMD in 2020. However, the qualified charitable distribution continues to be available up to $100,000 for individuals who are over age 70½.
This IRA Charitable Rollover provision allows individuals who have reached age 70 ½ to donate up to $100,000 per year to charitable organizations directly from their Individual Retirement Account (IRA) without treating the distribution as taxable income. These gifts can be used to meet the donor’s required minimum distribution.
Note: The IRA owner (or the beneficiary of an inherited IRA) must actually be age 70 ½ or older on the date of qualified charitable distribution (not merely turning 70 ½ sometime that year).
During Your Life
During your life, gifts from your IRA can be given to many funds at the Community Foundation of Central Georgia, including endowment funds, scholarship funds, and field of interest funds. However, you cannot make an IRA charitable rollover gift to a donor advised fund during your life.
At Your Death
At your death, gifts from your IRA can be given to any fund at the Community Foundation, including donor advised funds. Because retirement assets are some of the highly taxed assets and are among the most costly assets to pass onto heirs, using your IRA to make charitable gifts to organizations such as funds at the Community Foundation of Central Georgia can be a great strategy.
It’s easy to do!
- To make an IRA Rollover Gift during life, contact your IRA plan administrator to transfer the desired amount to CFCG (EIN #58-2053465). Then, call Julia Wood at the Community Foundation of Central Georgia at (478) 750-9338 to indicate to which fund you would like your gift attributed.
- To make a charitable gift from your IRA at death, simply update your IRA beneficiary form to name a fund at CFCG as a charitable beneficiary.
We know this can seem complicated. If you have any questions about charitable gifts from your IRA during your life or at your death, please consult your tax advisor and contact us at 478-750-9338.
Ready to make a gift from your IRA?
Please contact Julia Wood at the Community Foundation of Central Georgia at 478-750-9338 or firstname.lastname@example.org to discuss how you would like to designate your current or future charitable gift from your IRA.