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