A Tax-Saving Way to Help Colorado State University
See Your Generosity in Action
If you are 70½ years old or older, you can take advantage of a simple way to benefit Colorado State University and receive tax benefits in return. You can give any amount up to $100,000 per year from your IRA directly to a qualified charity, such as CSU, without having to pay income taxes on that distribution. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
Why Consider This Gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making at CSU in real-time.
- You pay no income taxes on the gift. The transfer generates neither taxable income, nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution (RMD) for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Frequently Asked Questions
Q. I've already named Colorado State University as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape.
Q. I'm turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to Colorado State University. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Q. Can my gift be used as my required minimum distribution under the law?
A. Yes, absolutely. If you are at least 72 years old and have not yet taken your required minimum distribution, your gift can satisfy all or part of that requirement of any amount, up to $100,000 per year. Contact your IRA custodian to complete the gift.
Q. When do I need to make my gift?
A. We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA account, please mail your check by Dec. 18 in order to give us time to process your gift before the end of the year.
Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $100,000 or less per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
Q. I have two charities I want to support. Can I give $100,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
Q. My spouse and I would like to give more than $100,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law.
Q. Should I notify CSU that I am planning to make a transfer?
A. Yes. Due to the nature of the IRA Qualified Charitable Distribution, CSU must be notified to ensure your gift is received and properly allocated according to your gift instructions. Please notify the Office of Gift Planning at (970) 491-3414 or firstname.lastname@example.org to inform us of your gift.
- Contact the Office of Gift Planning at (970) 491-3414 or email@example.com for additional information on making a gift from your IRA.
- Seek the advice of your financial or legal advisor.
- Ask your IRA administrator about making a direct transfer to CSU or have the administrator send a check from your account to us. (To be tax-free, the donation must go directly from your account to CSU without passing through your hands.)
Legal name: Colorado State University Foundation
Address: 7115 Campus Delivery, 2243 Center Avenue, Suite 200, Fort Collins, CO 80523-7115
Federal tax ID number: 23-7098397
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.