Make a Gift Tax-Free With an IRA
A Tax-Saving Way to Help the Chi Omega Foundation
Make a difference today and save on taxes. It’s possible when you support the Chi Omega Foundation through your IRA.
A Special Opportunity for Those 70½ Years Old and Older
You can give any amount (up to a maximum of $100,000) per year from your IRA directly to a qualified charity such as the Chi Omega Foundation without having to pay income taxes on the money. Gifts of any value $100,000 or less are eligible for this benefit and you can feel good knowing that you are making a difference at the Chi Omega Foundation. 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.
- Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
- 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.
- 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
No. The legislation requires you to reach age 70½ by the date you make the gift.
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 the Chi Omega Foundation. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Yes! Beginning in the year you turn 72, you can use your gift to satisfy all or part of your RMD.
No. You can give any amount under this provision, as long as it is no more than $100,000 per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.
No. Under the law, you can give a maximum of $100,000 per year. 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.
If you have a spouse (as defined by the IRS) who is 70½ or older, they can also give any amount up to $100,000 from their IRA.
Unfortunately, the law does not permit using a qualified charitable distribution to establish a charitable gift annuity or a charitable remainder trust. However, you can designate some or all of your retirement plan assets to fund a charitable gift annuity or charitable remainder trust after your lifetime. A charitable trust or gift annuity provides lifetime income to your family or other loved ones. When the gift arrangement ends, the balance will support the Chi Omega Foundation.
By making a gift this year of any amount 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. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
For Those 59½ Years Old or Older
If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
At Any Age
No matter your age, you can designate the Chi Omega Foundation as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It’s simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.
Tip: It’s critical to let us know of your gift because many popular retirement plan administrators assume no obligation to notify a charity of your designation. The administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed. We would also like to thank you for your generosity.
An Example of How It Works
Margaret Hyde Heritage Society Member, Leslee Thorpe Budge
When Leslee Thorpe Budge, Alpha Gamma/Utah State, and her husband discovered their five-year, $25,000 pledge to the Foundation could be given immediately as a tax-free IRA distribution, they were eager to put their generosity to work ahead of schedule while receiving tax benefits.
Leslee shared, "I learned the joy of giving when I was young, having donated from my piggy bank to support our local church. I have enjoyed consistently giving to the Foundation for over 10 years. With this particular gift, I wanted to encourage Chi Omega collegians to make donating to the Foundation a habit that starts in college. I appreciated that our gift would help redesign the Foundation Ambassador program, which completes the circle of giving as Ambassadors educate chapters about giving back to Chi Omega's leadership and educational programming. Through the IRA charitable rollover, it just made sense to complete our five-year pledge in one year so our support could begin right away."
Leslee has given to Chi Omega in many ways, from advising at Mu/California - Berkeley, to leading the Northern California Coordinating Council, to her current service as a member of the Chi Omega Travel Committee.
- Use our tool Take Action! Give From Your IRA to connect to your retirement provider.
- Contact Sally Stephens Kimball at 901.748.8600 or email@example.com to discuss using your IRA to support the Chi Omega Foundation and our mission.
- Seek the advice of your financial or legal advisor.
- To include the Chi Omega Foundation in your plans, please use our legal name and federal tax ID. Please let us know of your gift (many retirement providers assume no responsibility for letting nonprofits know of your intentions so your goals won’t be honored).
Legal name: Chi Omega Foundation
Legal address: 3395 Players Club Parkway, Memphis, TN 38125
Federal tax ID number: 31-0936294