1. Planned Giving
  2. Make a Gift Tax-Free With an IRA

Smart Giving From Your IRA

A Tax-Saving Way to Help University of Pikeville

Did you know that you can designate University of Pikeville as the beneficiary of all or a percentage of your IRA? It's simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.

If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.

A Special Opportunity for Those 70½ years old or older

You can take advantage of a simple way to benefit University of Pikeville and receive tax benefits in return. You can give any amount up to $100,000 per year from your IRA directly to a qualified charity such as University of Pikeville without having to pay income taxes on the money. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.

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.
  • Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution.
  • Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

Frequently Asked Questions for the Charitable Rollover

I've already named University of Pikeville as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?

By making a gift this year of any amount 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.

I'm turning age 70½ in a few months. Can I make this gift now?

No. The legislation requires you to reach age 70½ by the date you make the gift.

I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?

Yes. Your gift 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 University of Pikeville. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

Can my gift be used as my required minimum distribution (RMD) under the law?

Yes, absolutely. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution.

When do I need to make my gift?

We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA account, please mail your check by Dec. 18 in order to give us time to process your gift before the end of the year.

Do I need to give my entire IRA to be eligible for the tax benefits?

No. You can give any amount under this provision, as long as it is $100,000 or less per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.

I have two charities I want to support. Can I give $100,000 from my IRA to each?

No. Under the law, you can give a maximum of $100,000 per year. 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.

My spouse and I would like to give more than $100,000. How can we do that?

If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, they can also give any amount up to $100,000 from their IRA.

Can I use the transfers to fund life-income gifts such as charitable remainder trusts or charitable gift annuities?

Unfortunately, the law does not allow a lifetime gift made directly from your IRA to fund a charitable remainder trust or charitable gift annuity.

Personal Estate Planning Kit

Our Top Free Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy. FREE!

Download My Kit

Next Steps

  1. Contact a Planned Giving Officer at (606) 218-5230 or plannedgiving@upike.edu for additional information on making a gift from your IRA.
  2. Seek the advice of your financial or legal advisor.
  3. Ask your IRA administrator about making a direct transfer to UPIKE or have the administrator send a check from your account to us. (To be tax free, the donation must go directly from your account to UPIKE without passing through your hands.)

Legal name: University of Pikeville Inc.
Address: 147 Sycamore St. Pikeville, Ky. 41501
Federal tax ID number: 61-0444788

Personal Estate Planning Kit

Our Top Free Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy. FREE!

Download My Kit

Contact Us

Our planned giving team would be happy to speak with you in confidence, with no obligation.

I Have a Question

Already included us in your estate plan?

Let Us Know

A charitable bequest is one or two sentences in your will or living trust that leave to University of Pikeville a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to University of Pikeville, a nonprofit corporation currently located at 147 Sycamore St. Pikeville, Ky. 41501, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to UPIKE or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to UPIKE as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to UPIKE as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and UPIKE where you agree to make a gift to UPIKE and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
Personal Estate Planning Kit Request Form

Please provide the following information to view the materials for planning your estate.

First name is required
Last Name is required
Please include an '@' in the email address

eBrochure Request Form

Please provide the following information to view the brochure.

First name is required
Last Name is required
Please include an '@' in the email address