As winter nears, so too, does end-of-the-year giving. Over time, the College of Journalism and Mass Communications, like other colleges and departments at the University of Nebraska-Lincoln, has seen a steady increase in the number of qualified charitable distributions (QCD) from an individual retirement account (IRA), especially in the month of December.
That’s no surprise. After all, the QCD is a convenient, flexible and tax-efficient way to make a charitable gift. But it’s still a relatively new strategy with some nuances that donors should consider.
The QCD is a giving strategy for donors age 70½ and older. It allows for tax-free withdrawals of up to $100,000 annually from a traditional IRA, as long as the money is transferred directly to a qualified nonprofit organization. If properly directed to the charity, the gift will satisfy required minimum distribution obligations but for tax purposes is not included in the donor’s adjusted gross income. Therefore, it’s an effective strategy even for donors who don’t itemize their charitable deductions.
To successfully make the QCD, gifts must be:
- Issued directly to the University of Nebraska Foundation (EIN 47-0379839)
- Mailed to the University of Nebraska Foundation, 1010 Lincoln Mall, Suite 300, Lincoln, NE, 68508
- Must come out of the IRA account by December 31
Gifts can be directed to a specific fund, including the N Fund – College of Journalism and Mass Communications. For more information on completing a QCD, contact Jeremy Lohrman, Director of Development at the University of Nebraska Foundation, at Jeremy.Lohrman@nufoundation.org or (402)458-1100.