Under current tax law, if a donor is age 70 ½ and is required to take a minimum distribution annually from his/her Individual Retirement Account (IRA) that gift can be made directly to a nonprofit organization. This allows the donor to avoid claiming the distribution as income while benefitting the charity. These gifts are not allowed into donor-advised funds* but are allowed into any nonprofit agency fund held at the CFO, unrestricted fund, designated or field-of-interest endowment or scholarship fund.
A reminder the check must be made payable to the nonprofit organization. Please notify the CFO office this is an IRA rollover gift
for tax acknowledgement purposes.
*IRA gifts can be made to a donor-advised fund but the donor must first claim the money as income, and then take the tax deduction. In many situations this is not the most tax advantageous for the donor. Please consult your own tax and financial advisors for personal decisions.