IRA

Donate an IRA and Save on Taxes


The Details on Making a Gift

The IRA charitable rollover, often referred to as a qualified charitable distribution (QCD), allows you to make a tax-free gift from your individual retirement account (IRA) to a qualified charitable organization such as Texas Alpha Endowment Fund without having to pay income taxes on the money. You can make annual gifts to the Austin Woman's Club from your IRA this year and into the future.

How it Works

  • You are age 70½ or older at the time of the gift.
  • You transfer your gift directly from your IRA.*
  • You transfer the funds outright to one or more qualified charities, such as the Austin Woman's Club. The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.


Frequently Asked Questions

  • I’ve already named AWC 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, 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 already made by transferring that amount from your IRA.

  • 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.

  • Can my gift be used as my required minimum distribution under the law?

    If you are required to take minimum distributions, you can make a gift to us up to the allowable amount and also satisfy all or part of your RMD obligation.

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

    You can give any amount per year under this provision as long as it is under the maximum amount under the law. Contact us for the most up to date information on giving from your IRA.

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

    Yes. Direct gifts to a qualified charity can only be made 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 Austin Woman's Club. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

  • 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 features on your IRA, please be aware that your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.

  • How do I make my gift?

    Contact us for a sample letter you can use to request a direct charitable distribution from your IRA or contact your IRA administrator.

  • 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, they can also give any amount up to $100,000 from their IRA.

  • Can I use the transfer to fund life-income gifts like charitable remainder trusts or charitable gift annuities?

    Unfortunately, the law does not permit using a qualified charitable distribution to establish a charitable gift annuity or a charitable remainder trust. However, you can designate some or all of your retirement plan assets to fund a charitable gift annuity or charitable remainder trust after your lifetime. A charitable trust or gift annuity provides lifetime income to your family or other loved ones. When the gift arrangement ends, the balance will support the Austin Woman's Club.

  • I have already named the Austin Woman's Club 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.

Why Consider this Gift?

  • Your gift will be put to use today, allowing you to see the difference it will make with the Austin Woman's Club.
  • 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 tax deductions.
  • If you are required to take minimum distributions, you can make a gift to us up to the allowable amount and also satisfy all or part of your RMD obligation.
  • 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.


For Those 59½ Years Old or Older

If you are 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.


At Any Age

No matter your age, you can designate the Austin Woman's Club as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. 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.


Please see your legal and/or tax advisor for more information and to determine if a charitable bequest to/for the Austin Woman's Club is right for you.

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