You Can Make a Gift from Your IRA – Tax Free in 2013.
The IRA Charitable Rollover Gift is Easy and Has Been Extended for This Year!
You may make a gift from your Individual Retirement Account (IRA) and take advantage of the tax savings – now! Under the current tax law, anyone who is at least 70½ years old can transfer up to $100,000 from an IRA to a favorite charitable organization – tax free. This is important because if you are in this age group, you are required to take a minimum distribution from your IRA annually, and the distribution is included in your gross income for income tax purposes. The good news for you is that if the distribution is to a charity, the distribution is not treated as income.
Please consider making a gift to benefit your favorite area of UAMS with an IRA Charitable Contribution.
IRA Charitable Contribution gifts are required to take place by December 31, 2013. We advise that you contact your IRA administrator no later than December 1 to allow time to process your gift request prior to the end of the year. You may contact your IRA administrator for a form or use the sample letter
provided to your IRA administrator to initiate the charitable contribution.
For more information, please contact Art Horne
by email at firstname.lastname@example.org
or call him at 501.686.8957.
We value and appreciate you. Every gift makes a difference – and we are very grateful for the difference you have made for so many who come to UAMS for their care and education.
Frequently Asked Questions about Gifts with the IRA Charitable Contribution
Individuals who are age 70½ or older at the time of the contribution.
How much can I transfer?
You can transfer up to $100,000 to a qualified charitable organization in 2013.
How do I tell my IRA Administrator to make out the check – Who is the Recipient?
Transfers from your IRAs must be made in the name of the charitable organization. For UAMS, the recipient is “The University of Arkansas Foundation, Inc. for the benefit of UAMS.”
Where do I tell my IRA Administrator to Mail the Check?
The instructional information is provided in the Sample Letter and includes the mailing address of UAMS Institutional Advancement which processes the gifts made to the University of Arkansas Foundation, Inc. for the benefit of UAMS. The mailing address is UAMS, Institutional Advancement, 4301 West Markham, #716, Little Rock, AR 72205. See Sample Letter below.
What are the benefits to me?
A transfer from your IRA to a qualified charitable organization is not included in your gross income and is not treated as a taxable event. In addition, the transfer can be used to satisfy your Required Minimum Distribution for 2013. Although the transfer does not qualify as a charitable tax deduction, you will have the benefit of knowing that your generosity with your IRA distribution is helping others.
How do I use a gift from my IRA to create an endowment?
An initial gift of $25,000 can be used to establish a scholarship endowment named after the donor, a family member or other loved ones. The process to create an endowment fund is simple; please contact our gift planner to get started. There are other types of endowments available.
Can I use the IRA gift to support a particular purpose?
Yes, as with all other gifts, you can direct your IRA Charitable Contribution gift to benefit any area of UAMS. Otherwise, the gift will be an unrestricted gift directed for UAMS Greatest Needs.
Does this transfer qualify as my minimum required distribution?
Once you reach age 70½, you are required to take minimum distributions from your IRA each year. A charitable distribution from your IRA will count toward your minimum required distribution for the year.
What is the procedure to execute an IRA Charitable Distribution?
Contact your IRA custodian or representative before making a gift to arrange for the proper transfer of funds from your IRA directly to our foundation or other qualified charities. The check issued from the IRA must be made payable directly to our foundation. We have a sample letter
you can send to your IRA provider to initiate the distribution. Make sure that you contact us when you direct the contribution so that we can be sure to watch for the check from your IRA administrator.
Do I receive a letter acknowledging receipt of the gift from my IRA?
Yes, the UAMS Institutional Advancement, which processes gifts made to our foundation for any area of UAMS, will send a letter to you acknowledging our foundation’s receipt of the gift from your IRA. The acknowledgement letter will contain the language required by the IRS. If you designated your gift for a particular area of UAMS or a particular fund, the letter will confirm your gift designation.
The information above is provided for you to consider an IRA Charitable Distribution and does not represent tax or legal or financial advice. You are encouraged to consult with a professional who specializes in tax, legal and financial matters to assist you with your particular tax situation.
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