Tax Smart Options for Donating to OSU Rowing

Have you wondered if there is a more tax-efficient way to make your gift to OSU Rowing than writing a check or using your credit card? The reality is there are many tax-beneficial options from gifting appreciated stock to gifts of property--and there is a special opportunity for those who are over 70 ½.

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Under the current IRS rules, owners of a Traditional IRA must take mandatory distributions from that account starting at age 73. These required minimum distributions (RMDs) are taxable and can cause headaches for individuals who may not need the income right away or who are at risk for triggering the Medicare surcharge tax. However, a special provision allows owners of Traditional IRAs who have reached the age of 70 ½ to instead use these required distributions to make charitable gifts.

It works like this: Instead of the IRA owner taking the distribution and paying income tax, the IRA owner directs their IRA custodian to send all or some of their required distribution directly to a qualified charity as a Qualified Charitable Distribution (QCD). Unlike most charitable gifts, the donor will not receive a charitable income tax deduction. However, because the distribution was sent directly to a charity, the donor/IRA owner does not have to record the distribution as income and pay taxes on it. Many donors are using these qualified charitable distributions to make their annual gifts or even to make significant contributions to establish named funds to support scholarships or favorite programs.

There are a few things to keep in mind when making a QCD:

The QCD must come from a Traditional IRA, not a SEP or a Simple IRA. 401(k)s and 403(b)s also do not qualify.
Up to $105,000 in total per IRA owner to one or more charities in a calendar year (indexed for inflation beginning in 2024).
Distributions must be received by December 31 to be counted towards an RMD for that year.
These gifts require a special receipt from the charity stating that no goods or services were received in return. This means your QCD gift cannot be used for benefits, such as a meal at a dinner or tickets at an athletic event (cannot be used for Beaver points).
A donor can use a QCD gift to pay off a pledge payment.
The donor/IRA owner must be at least 70 ½ on the day the gift is made.

Is this option right for you? QCD gifts can be one of the easiest ways to make an impact for OSU Rowing. Make sure to call or email the OSU Foundation in advance of making your QCD gift so we can ensure we credit you with the gift and designate it for rowing (IRA custodians often send checks without donor names or gift designations included). And while you are at it, consider naming the OSU Foundation as a beneficiary of your IRA- you can designate the gift for Rowing! By combining both ways of giving (annual gifts and legacy gifts), we can help ensure the future of OSU Rowing.

Interested in joining your crew mates in providing support to OSU Rowing? Contact Steve Sullivan at steve.sullivan@osufoundation.org. Want to learn more about legacy gifts? Visit: OSU Foundation Planned Giving or contact Stephanie Zaino at Stephanie.zaino@osufoundation.org or 541-520-2832.