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IRA Rollovers to Non-Profits Can Change Lives
Author: University Development Staff
Posted: December 1, 2011

A gift from your Individual Retirement Account (IRA) to the Portland State University Foundation can change lives by supporting accessible, quality higher education.

Even better, if you are 70½ years of age, you qualify for an IRA charitable rollover of up to $100,000. But, you need to act soon - the provision that allows the charitable rollover expires on December 31, 2011.

Using the IRA charitable rollover, donors ask their IRA custodian to transfer funds directly to a public charity such as the Portland State University Foundation, either outright or for a specific purpose (but not be to a donor-advised fund or supporting organization). The transfer must be made directly from an IRA custodian to the PSU Foundation.  IRA funds rolled over in this manner may be counted as a Qualified Minimum Distribution. They are not tax deductible, but neither are they counted as taxable income, which may simplify tax preparation.

Browse options at PSU to learn more about how you can change lives by investing in higher education. Then talk with your tax advisor to learn more about your specific situation.

The simplest way to start an IRA Rollover to the PSU Foundation is to send an e-mail or letter to your IRA custodian, usually the financial services company that manages your IRA. Please check their website for contact information.

Sample note:*

Dear IRA Custodian,

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, effective from January 1, 2010 to December 31, 2011, permits a rollover directly from an IRA to a qualified public charity. As the owner of IRA account #_________________ that is in the custody of your organization, I request that you transfer from that account the sum of $_________________ to Portland State University Foundation, PO Box 243, Portland, OR 97207. The Treasury Tax ID Number for PSU Foundation is 93-0619733.

It is my intention to make a Qualified Charitable Distribution (QCD) to the PSU Foundation 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 promptly send those to me.

Cordially yours,

IRA Owner

*If you use this sample note, please enter your account number and the amount of rollover in the blanks.

Please contact the PSU Development office if you have any questions about making a gift. We are here to help! Our phone is 503-725-4778 and our email is give@pdx.edu. Thank you for your support of PSU's students.