IRA Charitable Rollovers and Your Hollins Gift

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Please take advantage of the IRA Charitable Rollover

On December 18, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015, which reinstated the IRA Charitable Rollover provision allowing individuals aged 70 ½ and older to transfer their mandatory minimum distribution (up to $100,000) directly to qualified charities.

You can make your mandatory distribution into a wonderful gift for Hollins. This provision last expired on December 31, 2014. Effective retroactively for 2015 and beyond, this will be a permanent benefit.

Take advantage of this giving opportunity!


What this means for Hollins – and you

  • You must be at least age 70 ½ at the time of the charitable distribution.
  • You may distribute up to $100,000 for the 2015 tax year.
  • Call your financial planner to set up a transfer.
  • A distribution must be made directly from the trustee/administrator of your IRA directly to Hollins, satisfying the required minimum distribution rule (you cannot receive the distribution prior to gifting to charity without incurring tax liability).
  • No charitable deduction is allowed, but the distribution is excluded from your income for federal tax purposes.
  • Please notify Hollins of your intention (see contact information).

You will make an immediate impact on the Hollins community!


How to make your gift

  • Contact your plan administrator to request a distribution from your IRA account to Hollins under the Charitable Rollover provision (see below for sample language).
  • It is important that you alert Hollins to the distribution so that we can monitor its receipt and provide you with the proper acknowledgement required by the IRS for charitable IRA Rollover distributions.
  • Hollins’ tax ID # is: 54-0506314.
  • Your plan administrator should mail your distribution to: Office of Institutional Advancement, Hollins University, Box 9629, 7916 Williamson Rd., Roanoke, VA 24020.

Sample language for your IRA administrator

Here’s some sample language for your IRA plan administrator (always consult your financial advisor to determine whether using the Pension Protection Act makes sense for you and your personal financial situation):

Sample Language:

Congressional renewal of the IRA Charitable Rollover permits a rollover donation directly from an IRA to a qualified public charity. As the owner of IRA account [INSERT ACCT NUMBER] that is in the custody of your organization, I request that you transfer from that account the sum of $____________ to Hollins University Institutional Advancement, Box 9629, 7916 Williamson Rd., Roanoke, VA 24020. The Tax ID Number for Hollins University is: 54-0506314.

It is my intention to make a Qualified Charitable Distribution (QCD) to Hollins University from my IRA, which may fulfill part or all of my IRA required minimum distribution for this year.

This letter is sufficient authorization for you to make this QCD gift. However, if you require any further documents, please forward those to me for my signature.

Sincerely,

[Your Name]