Give from your IRA

To learn more about these life income options, jump to charitable gift annuities or charitable remainder trusts. Keep in mind that some of the rules and requirements differ if you fund the CGA or CRT from your IRA.

See it in action

Option 1

Pat, age 75, is required to take a taxable IRA distribution of $15,000 this year. Pat wants to support IU and decides to make a qualified charitable distribution (QCD), transferring $15,000 directly from the IRA to IU. The transfer counts toward Pat’s RMD, satisfying the distribution requirement, but no tax is due on the distribution. The full amount of the transfer supports education, transforms lives, and fuels progress in Indiana and beyond—nothing is lost to taxes!

Option 2

This year, Sam, age 75, makes a one-time, tax-free QCD of $53,000 to fund a charitable gift annuity with IU—an easy way to make a powerful difference. Sam will receive an annual payment of $3,710 for life, and these payments are taxable each year. If Sam had decided to personally receive the $53,000 distribution this year instead of using it for a QCD, the full amount would have been currently taxable.

You choose how to give

When you give from your IRA, you can:

  • Make an immediate impact on IU and gain tax advantages for yourself.
  • Make a gift and create a lifetime income stream for retirement.
  • Make an easy, flexible future gift by naming the IU Foundation the sole or partial beneficiary of your IRA.

Giving retirement assets to IU makes good sense

IRA assets can be highly taxed upon your death—possibly taxed once in your estate and then again as income to your children or other named beneficiaries. To minimize the income tax burden on heirs, consider donating the IRA assets and leaving heirs stocks, bonds, mutual funds, or real estate instead—assets that are not subject to income tax when they are passed down (and may even receive a step-up in basis).