Make a tax-free gift directly from your IRA
Called a qualified charitable distribution, or QCD, this giving opportunity is particularly beneficial for donors who may not need their annual required minimum distribution or who want to make a larger tax-free charitable gift from an IRA.
When your gift goes directly to WashU, you do not report the IRA distribution as income. This is particularly useful if you do not itemize your deductions. As with other gifts, you can designate the purpose for which the gift is to be used.
To make a qualified charitable distribution from an IRA:
- You must be 70½ years of age or older on the date the distribution is made.
- The transfer must go directly from your IRA to WashU. (The IRA manager will need to send your distribution via wire transfer — see instructions.)
- You may make tax-free transfers from your IRA to a charity or charities totaling up to $111,000 each calendar year. If you are married, your spouse may also be eligible to make such gifts up to $111,000 from their own IRA.
- A qualified charitable distribution from your IRA will count toward your minimum distribution requirement.
- Gifts from an IRA may only be used to make an outright gift to a qualified public charity, such as WashU. Qualified charitable distribution gifts from an IRA cannot be used to fund a donor-advised fund, or a private foundation.
- The SECURE Act 2.0 (passed in December 2022) allows for QCDs up to $55,000 in a single year to be directed to a charitable remainder unitrust, charitable remainder annuity trust, or a charitable gift annuity.