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A Tax-wise Way to Help Renew the Chapel

Emil and Debbie Diener, residents of Mount Vernon and parents of an MVNU alumnus, wanted to support the renovation of the R.R. Hodges Chapel. For them, giving part of their IRA RMD was the perfect way to save taxes.

The following fictional story illustrates a typical donor scenario.

SUPPORTING THE CHAPEL WITH RMD AND SAVING ON TAXES

Emil and Debbie Diener save taxes by giving part of their IRA RMD.

"As parents of a student and now long-time alumnus, we have always enjoyed the MVNU campus. When the opportunity came to support the renovation of the Chapel, we wanted to contribute. We chose to use a portion of our RMD - required minimum distribution - to make this possible for a few reasons. It was easy to accomplish through our financial planner/advisor and it reduces the tax effect of the RMD. If you have a gifting spirit and are required to take a withdrawal from your traditional IRA, this is the method for saving on taxes."

What is an IRA QCD or IRA charitable rollover gift?

If you are 70½ or older, an IRA qualified charitable distribution (IRA QCD), also called an IRA charitable rollover, is a way to make a gift to support the cause of Mount Vernon Nazarene University from your IRA.

  • Avoid taxes on transfers of up to $111,000 from your IRA to MVNU
  • Satisfy your required minimum distribution (RMD) for the year
  • Reduce your taxable income, even if you do not itemize deductions
  • Make a gift that is not subject to the deduction limits on charitable gifts
  • Help further the work and mission of MVNU

How an IRA charitable rollover gift works

  1. Contact us about creating an IRA rollover to support Mount Vernon Nazarene University.
  2. Contact your IRA plan administrator to make a one-time qualified charitable distribution (QCD) from your IRA to MVNU. (Find your custodian in the drop-down box.)
  3. MVNU will use your IRA gift as you direct.
  4. You will receive an acknowledgement from MVNU for your taxes.
  5. Please note that IRA gifts do not qualify for a charitable deduction, but they also are not taxed to you.

Is an IRA rollover gift right for you?

Have you calculated what your IRA required minimum distribution will be this year and how it will affect your taxes? If you have questions about how you can benefit from an IRA rollover, please feel free to contact us .