We ask that you consider making a gift or pledge to the CSI Foundation’s Annual Fund, which can provide much needed scholarship funds, sponsor undergraduate research projects, improve technology and communications on campus, and support our NCAA Division III Athletic teams. For advice on how to make this gift to CSI, please contact Cheryl Adolph at firstname.lastname@example.org.
The following are alternative ways to make gifts/pledges to the College of Staten Island Foundation. We strongly recommend that you consult with your tax advisor/financial planner to fully realize the tax/planning implications of your gift.
IRA Charitable Rollover Gifts 2017 Tax Year
December 23, 2016
This summary provides information for donors considering an IRA charitable rollover gift. A bill was signed into law by the former President Obama on December 18, 2015, making the IRA charitable rollover permanent.
Among the provisions of the bill is an exclusion from gross income for income tax purposes of up to $100,000 (per IRA account owner) for “qualified charitable distributions” from an Individual Retirement Account (IRA). The distribution will count toward an individual’s Required Minimum Distribution (RMD). The statutory requirements for a “qualified charitable distribution” are as follows (for more information see https://www.irs.gov/uac/newsroom/irs-offers-tips-for-year-end-giving-2013:
- The distribution must be made from an IRA (other retirement accounts are not eligible).
- The recipient must be an eligible charitable organization.
- The IRA’s owner must be at least age 70½.
- The distribution must be made directly to the charity by December 31, 2017. (See below.)
- The distribution must otherwise be fully deductible as a charitable contribution.
- The distribution must otherwise be included in gross income.
Frequently Asked Questions
What are the deadlines to complete a gift? Distributions by wire transfer must be received in CSI Foundation’s account by December 31, 2017. Distributions by check must have a postmark (on the envelope) no later than December 31, 2017. Because of the high volume of year-end gifts, contact your IRA administrator as soon as possible to allow enough time for them to issue your gift before the end of December.
Email email@example.com or call 718.982.2365 if you are planning to make this charitable IRA rollover.
Will there be an opportunity to make IRA rollovers in early 2017 retroactive to the 2016 tax year, as was done in previous years? No. Eligible gifts for 2017 must be received or postmarked by December 31, 2017. However, the permanent extension means that IRA gifts are in effect for 2017 from the beginning of the year.
May I make a gift from my IRA if I have already taken my required minimum distribution (RMD)? Yes. You can exclude up to $100,000 (per IRA account owner) from gross income for qualified charitable donations. The donation counts toward your RMD but is not limited by your RMD.
May I contribute more than $100,000 to a qualified charity from an IRA? Yes. However, the law limits the exclusion from gross income to $100,000. Charitable contributions from an IRA in excess of the $100,000 must follow the general rules pertaining to percentage limitations and itemized contribution reductions.
Are IRA distributions already taken by me eligible to gift as qualified charitable distributions? No. However, you can make gifts from IRA distributions that do not meet the requirements of a qualified charitable distribution. In such cases, the IRA distribution would be recognized as income for income tax purposes and typically would be eligible for a federal income tax charitable deduction.
Is my IRA charitable rollover gift eligible for an income tax charitable deduction? No. Donors of qualified IRA gifts do not receive a federal income tax charitable deduction for the IRA gift, as they are not being taxed on the withdrawal.
Are there other tax advantages to gifting through a qualified IRA? Yes. Qualified IRA gifts are not subject to percentage of adjusted gross income (AGI) limitations for charitable contributions and are not reportable as income for federal income tax or for Social Security income purposes. The amounts withdrawn are not subject to state income taxes in most states. Donors who do not itemize deductions on their federal income tax returns may benefit from qualified IRA gifts for their exclusion from gross income. Amounts withdrawn from an IRA account are removed from the donor’s taxable estate. Talk to your tax advisor to see which benefits apply to your specific situation.
What types of charitable gifts are not eligible for IRA rollover gifts? Most gifts to a private foundation, donor-advised fund, or supporting organization are not eligible. Gifts to a charitable remainder trust, lead trust, pooled income fund, or charitable gift annuity are not eligible. Gifts for which the donor receives a benefit that reduces the donor’s tax deduction (such as tickets or dinner) are not eligible.
Are gifts from retirement plans other than an IRA eligible? No. However, donors may be able to make qualified transfers from their pension or retirement plan to their IRA, and then make a charitable gift from their IRA account.
This is not intended to be legal or tax advice. We encourage you to consult your own legal or tax advisor.
Gifts of Cash are the simplest way of contributing, and the most beneficial to CSI. A donor may claim a charitable income tax deduction up to 50% of adjusted gross income for gifts of cash.
Gifts of Appreciated Securities are an outright contribution of long-term appreciated securities; they eliminate the capital gains tax on those securities, and entitle the donor to a charitable deduction equal to their fair market value. Because a donor can avoid the capital gains tax, it is usually more advantageous to contribute appreciated securities directly to the CSI Foundation rather than to sell them and give the proceeds of the sale.
Matching Gifts can benefit the College, as many businesses offer these programs. Under these programs, an employee's gift to the CSI Foundation is matched by the company. Matching gifts are credited to the donor's individual gift record.
Gifts of Closely Held Stock are gifts of stock of a privately or family-held corporation. Donors will avoid capital gain taxation on appreciation of closely held stock, while earning a tax deduction based on the stock’s fair market value. Gifts of closely held stock exceeding $10,000 will be receipted at the fair market value placed on the stock by a qualified appraiser. As with publicly traded stock, donors may obtain an immediate charitable income tax deduction up to 30% of their adjusted gross income.
Bequest & Living Trusts are gifts of cash, securities, or real property made upon the donor’s death, through provisions in his or her will or living trust.
Charitable Remainder Trust (CRT) is an irrevocable transfer of assets to a trust, naming the CSI Foundation as the only remainder beneficiary, or as one of several charitable beneficiaries. Life income of a set dollar amount (annuity trust) or a fixed percentage (unitrust) is paid annually.
Charitable Lead Trust (CLT) is an income-producing asset placed in a trust, the income of which is contributed to the CSI Foundation for a designated period of time not less than two years or more than 20 years, after which the trust’s assets are returned to the donor or revert to non-charitable beneficiaries named by the donor. The donor may gain immediate tax advantages or may reduce gift, transfer, or estate taxes when the assets are passed to children or grandchildren.
Charitable Gift Annuity (CGA) is an irrevocable gift in exchange for a guaranteed fixed income for life, which is based upon the annuitant’s age at the time of the gift. Upon the annuitant’s death, the remainder is transferred to the CSI Foundation. If the donated asset is appreciated securities, capital gains taxes may be reduced and paid over many years. Gift annuities will be valued based upon the annuitant’s age(s) when the annuity is created. ($10,000 minimum).
Gifts of Tangible Personal Property and Gifts-in-Kind include many types of new and used equipment, jewelry, paintings, sculptures, antiques, rare books and collectibles, or other types of property that can be used to make a gift. If the CSI Foundation uses a donated asset, the donor is entitled to a charitable deduction equal to the fair market value of the asset, determined, at the donor’s expense, by a qualified appraisal.
Gifts of Life Insurance require the designation of the CSI Foundation as the owner and beneficiary of a life insurance policy. Gifts of life insurance will be credited only if the CSI Foundation is the owner and irrevocable beneficiary of the policy.
For more information or to receive information on any of these ways of giving, please call the Office of Institutional Advancement at 718.982.2365 or email your name, address, and area of giving interest to firstname.lastname@example.org.
Giving to the College of Staten Island from your IRA
The Tax Relief Act of 2010 has reinstituted the charitable giving from your IRA provisions, which so many people have used since they were first passed in 2006.
You can make a gift to CSI directly from your IRA and have it count toward your minimum required distribution but not be taxed as income!
You are eligible to make a ‘‘qualified charitable distribution’’ from your IRA if:
- you are 70½ years old on the date of the gift
- the IRA is a traditional or Roth IRA (SIMPLE or Sep IRAs are not eligible)
- the maximum gift per person in any one year is $100,000
- the gift goes directly from your IRA custodian to CSI (in the past, it has been considered a direct gift if a check drawn by the custodian made payable to the CSI Foundation is sent to the IRA owner – you – for delivery to the College)
- the full value of the gift would be eligible for income tax charitable deduction if it were not a ‘‘qualified charitable deduction’’ (i.e., it needs to be an outright gift to CSI such as payment of your pledge and not for dinner tickets or a planned gift)
- the amount given from your IRA would be included in your gross income if you hadn't chosen to make this ‘‘qualified charitable deduction."
As with all gift giving, you should get the advice of your financial advisors and tax preparers to ensure that you are maximizing the possible benefits for you and your family.