Levi Hall at University of Chicago

View of Ellis Avenue from the quad trough the Edward H. Levi Hall walkway.

Qualified Charitable Distribution

Qualified Charitable Distributions from IRAs

A qualified charitable distribution (QCD), also known as an IRA charitable rollover gift, allows individuals 70 ½ or older to make an outright gift of up to $100,000 from an IRA directly to the University and exclude it from taxable income.

REQUIREMENTS OF A QCD

  • The IRA account holder must be age 70 1/2 or older at the time the distribution is made to the University.
  • Distributions are limited to $100,000 per individual per year and must be transferred directly from the IRA custodian to the University.
  • Distributions can only be directed from a traditional or Roth IRA (not from a retirement plan such as a 401(k), 403(b), etc.).
  • Distributions cannot be made to a donor advised fund or supporting organization (including most private foundations) or used to fund a charitable gift annuity or charitable remainder trust.

No goods, services, or income can be received by the donor in exchange for the gift. Donors should consult their financial adviser, as other requirements may apply.

BENEFITS OF A QCD

  • Satisfies all or part of annual required minimum distributions (RMD) and provides a charitable giving strategy for donors who do not need the additional income.
  • May be used to fulfill any outstanding pledges.
  • Maximizes giving by allowing donors to give outside of the 60 percent of adjusted gross income (AGI) charitable deduction limit.
  • Provides value for nonitemizers and donors who live in states that do not allow charitable deductions.
  • Minimizes tax liability and can put donors at a lower threshold for Medicare premiums by reducing income.

Donors should work closely with their IRA custodian to request a direct distribution to the University.