Gifts of Stocks or IRA Rollovers

If you are 72 years old or older, you can take advantage of a simple way to give to The Leelanau School and receive tax benefits in return. You can give any amount up to $100,000 per year from your IRA directly to a qualified organization, such as Leelanau without having to pay income taxes on the money. 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.

Your gift will be put to use today, allowing you to see the difference your donation is making.

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 are at least 72 years old and have not yet taken your required minimum distribution for the year, your 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.

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 organization 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 Leelanau School. 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 most any year. If you have check-writing privileges on your IRA account, sending in a check 10-12 days prior to the end of year will 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 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 72 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.

1. Seek the advice of your financial or legal advisor.
2. Ask your IRA administrator about making a direct transfer to The Leelanau School 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 Leelanau without passing through your hands.)