For many, a high percentage of their assets is invested in a retirement plan such as an Individual Retirement Account (IRA), 401(K), 403(b) or other type plans. There are two ways to make a gift to Pima Foundation through those plans:
+ The Pima Community College can be named as a beneficiary, co-beneficiary, or contingent beneficiary of the plan; changing a beneficiary is often as simple as requesting a Change of Beneficiary form from the insurance provider.
+ For individuals 70 ½ years of age or older and who are required to take an annual distribution (“Required Minimum Distribution” or “RMD”) from their IRA, they may be able to make a gift using the Qualified Charitable Deduction. Doing so does not result in a tax-deductible gift for the donor, but it eliminates the need to pay income tax on the distribution! Avoiding the payment of income tax on the distribution is generally more advantageous for the donor than taking the charitable deduction.
A few important things to remember, however:
1) The transfer must be made directly from the IRA administrator to Pima Community College (the check can’t be made out to the donor)
2) The gift should be made in place of taking the RMD (if the RMD has already been taken for the year, it’s best to wait until the next year to make the Qualified Charitable Distribution)
3) Gifts to more than one charitable organization can be made but should be made simultaneously.
The transfers to charity can total as much as $100,000 per year – regardless of the amount of the required RMD!