See Your Generosity in Action
If you are 70½ years old or older, you can take advantage of a simple way to benefit the University of Massachusetts Amherst and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified nonprofit institution such as ours without having to pay income taxes on the money.
This law no longer has an expiration date so you are free to make annual gifts to our organization this year and well into the future.
Why Consider This Gift?
- 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 have not yet taken your required minimum distribution for the year, your qualified charitable distribution (QCD) can satisfy all or part of that requirement.
Frequently Asked Questions
Q. I've already named the University of Massachusetts Amherst as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
Q. I'm turning age 70½ in a few months. Can I make this gift now?
A. No. The legislation requires you to reach age 70½ by the date you make the gift.
Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct rollovers to a qualified charity 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 University of Massachusetts Amherst. 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 have not yet taken your required minimum distribution, a QCD can satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
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 this 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 have two charities I want to support. Can 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 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
An Example from UMass Amherst
A first-generation college graduate, John Spinney Jr., Isenberg '87, worked hard to put himself through school. He credited his later success to the education he received at UMass Amherst. This gratitude as well as a deep desire to give back, led John to support UMass Amherst through a variety of gifts, such as naming UMass Amherst as a beneficiary of his retirement account.
This gift ensures his legacy will live on for future generations of students.
- Contact Theresa M. Curry, JD at 413-577-1418 or firstname.lastname@example.org for additional information on giving an IRA gift.
- Seek the advice of your financial or legal advisor.
- Ask your IRA administrator about making a direct transfer to UMass Amherst or have the administer send a check from your account to us. (To be tax free, the donation must go directly from your account to UMass Amherst without passing through your hands.)
Legal Name: University of Massachusetts Amherst
Address: 134 Hicks Way, Amherst, MA 01003-9270
Federal Tax ID Number: Please contact us for our federal tax ID number.