IRA Giving

Make a Tax-Free Gift from your Retirement Fund

73 years young or older? You may be a candidate to support the conservation causes you care about through a Required Minimum Distribution (RMD) or Qualified Charitable Deduction (QCD). The Secure 2.0 Act of 2022 allows individuals over the age of 73 to donate directly from their retirement accounts.

Many companies provide easy online options. If you have a 401(k), 403(b), 457 plans, SEP IRA or SIMPLE IRAs, you may be eligible for a tax benefit by directing your annual withdrawals to support the Cherish Wisconsin Outdoors Fund.

Check with your tax professional on how the SECURE 2.0 Act of 2022 affects your own situation. Learn more here.

What is a Qualified Charitable Distribution?

A Qualified Charitable Distribution (QCD) is a tax-efficient way for individuals age 70½ or older to donate directly from their Individual Retirement Arrangement (IRA) to a qualified charity.

Key IRS Guidelines for QCDs

Age Requirement: You must be 70½ or older at the time of the distribution to make a QCD.

Eligible Accounts: QCDs can be made from traditional, rollover, or inherited IRAs. SEP and SIMPLE IRAs are also eligible if they are inactive (no contributions being made). Employer-sponsored plans (like 401(k)s or 403(b)s) are not eligible.

Direct Transfer: The funds must be transferred directly from your IRA custodian to the qualified charitable organization. Money distributed to you first and then donated does not count as a QCD.

Annual Limit: The maximum annual exclusion for QCDs is $108,000 per person for 2025. This limit is indexed for inflation. For married couples, each spouse can make a QCD of up to this amount from their own IRA.

Required Minimum Distribution (RMD)

The Secure Act of 2022 defines RMD guidelines for how individual must begin to spend down their retirement accounts, such as IRAs, 401(k)s and 403(b)s. The amount of these distributions is determined by a specific calculation that considers the persons age and the total balance of the account.

Generally, the older the person the larger these distributions are required by the IRS, to encourage that the account is as close to $0 as possible upon death. These guidelines have changed over time. The starting age for required minimum distributions (RMDs) was 70.5 years of age. In 2020 it was pushed to age 72 for some and now it’s been pushed even later. RMDs will be required at age 73 for people born between 1951 and 1959. RMDs will be required at age 75 for people born 1960 and later.

Gift Parameters

• If you turned 70 ½ in 2019 or earlier, or if you turned 72 in 2020 or later, you can make a contribution to a qualified charity directly from your IRA and count your gift towards your annual required minimum distribution. Your distribution is not recognized as income on your federal income tax return.
• Your gift must be complete on or before December 31 of the calendar year in which you choose to utilize the IRA Charitable Rollover gift vehicle for tax purposes. Generally, if sent by US mail, the postmark determines the date of gift; if sent via cash wire, date of gift is determined by the date the funds reach NRF’s account.
• Your gift must be made to a qualified public charity, such as the Natural Resources Foundation of Wisconsin (NRF).
• Distributions must be made directly from your IRA to NRF. Do not withdraw the funds yourself and pass them on to NRF or your gift will not qualify for the IRA Charitable Rollover and will be included in your taxable income.
• You can only make outright gifts. The IRA Charitable Rollover cannot be used to fund life income gifts (such as charitable gift annuities or charitable reminder trusts).

What are the advantages of making an IRA Charitable Rollover Gift?

• You can count your gift towards your annual required minimum distribution.
• Your distribution is not recognized as income on your federal income tax return. Note: you cannot take a federal income tax charitable deduction for your gift.
• Under current federal tax laws, keeping your IRA distribution out of your adjusted gross income may save you taxes.
• The transfer process is quick and requires minimal paperwork.

Cautions

Employer-sponsored retirement plans, such as SEP IRAs, SIMPLE IRAs, 401(k)s, and 403(b)s are generally not eligible for the IRA Charitable Rollover. Some states may determine that IRA Charitable Rollover gifts are includable as income for state and local tax purposes.

How to Make Your Gift

BY CHECK
Instruct your IRA administrator to mail a check directly to NRF (payable to NRF) to:

Natural Resources Foundation of Wisconsin
Attn: David Clutter, Executive Director
211 S Paterson Street, Suite 100
Madison, WI 53703-4530

Please make sure that your administrator encloses a letter along with your check stating: your name; the purpose of your gift (e.g. Conservation Steward Society); and notes that it is a qualified charitable distribution from your IRA. This information can also be stated in the memo line of your check.

Download a Sample Letter Here

BY CASH WIRE
If your IRA administrator prefers to make a cash wire transfer from your retirement account to NRF, please fill out the wire transfer letter and ask him/her to contact David Clutter at: David.Clutter@wisconservation.org or (608-409-3120)

BY SECURITIES TRANSFER

DTC Participant Number: 2663
Agent Internal Account #: 20075-D
Interested Party AC # 1: NRF of WI 882292401

If you are transferring a mutual fund to the Natural Resources Foundation, please contact us at (866) 734-1485 or Info@WisConservation.org so we can secure the appropriate account number specific to your mutual fund from TIAA.

For questions, please contact:

Tim Ringkamp
Institutional Trust Administrator
TIAA, FSB
TIAA Financial Services
211 North Broadway, Ste. 1000
St. Louis, MO 63102-2733
Tel: 314-244-5125
Fax: 314-244-5199
TRingkamp@tiaa.org

The Natural Resources Foundation of Wisconsin does not provide legal or tax advice. Please consult your own legal and tax advisors in connection with gift and planning matters.