Making a Gift From an IRA to Cal Poly

It's Back!
On October 3, 2008, Congress passed a law that revives the IRA Charitable Rollover.   In part, the new law allows some people to make charitable gifts directly from an IRA. (The information below is also available as a printer-friendly pdf.)

Specifically:

• You, as the plan owner, must be 70 ½ years of age on the date of your gift.
  
  
• You may gift up to $100,000 each year in 2008 and 2009. This pertains to each person, meaning that if both spouses have IRA plans, each may make gifts up to that limit.  Please note that 401(k) plans and other non-IRA retirement plans do not qualify.
  
  
• The gift will be counted against your required minimum distribution but will not be counted for income tax purposes.  (In exchange, you forego the ability to claim the gift as a deduction.)
  
  
• The gift must go to a qualified public charity, such as the California Polytechnic State University Foundation.
  
  
• You must make your gift outright. These funds cannot be used to establish a planned gift.

If you do not qualify to take advantage of this new legal provision, but would like to discuss other ways of meeting your philanthropic goals using a retirement account, please contact us at (800) 549-2666 or via e-mail to plannedgiving@calpoly.edu.

Steps for making a gift
The process for making a gift using your IRA is straightforward--but it is important to exercise care to assure that your transaction is completed correctly.  It is especially important to avoid having the funds distributed to you personally, as that could trigger income tax to you.

If you have any questions about the following steps, please contact Cal Poly’s Office of Planned Giving and Endowments at (800) 549-2666 or via e-mail to plannedgiving@calpoly.edu.  We are always happy to work with you to ensure that your gift reflects your passions and priorities at the University.

To make a gift from your IRA:

• Contact your IRA administrator to ensure the company is prepared to handle your request.
  
  
• Send your IRA administration company a letter requesting the distribution. (sample below)
  
  
• Send Cal Poly a copy of your letter so we can be expecting the distribution check and deposit it as you have requested. Send the copy to:
  
  
  

  Planned Giving and Endowments Heron Hall, Building 117 Cal Poly San Luis Obispo, CA  93407-0444

A confirmation will come from Cal Poly when we receive your distribution.

Sample letter to IRA administrator

{Date}

To Whom It May Concern:

You are requested and authorized via this letter to make a charitable distribution from my Individual Retirement Account {# ________} as provided by Tax Extenders and Alternative Minimum Tax Relief Act of 2008, H.R. 1424.

I request that a check be issued in the amount of {$________} payable to:
California Polytechnic State University Foundation
c/o Planned Giving and Endowments
Heron Hall, Building 117
Cal Poly
San Luis Obispo, CA  93407-0444

This distribution made to the California Polytechnic State University Corporation (federal tax identification number 20-4927897) is to benefit Cal Poly’s {college, department, program or endowment of your choice}.

Please include my name as the donor of record in connection with this charitable distribution.

I am requesting a copy of your transmittal to the California Polytechnic State University Foundation be sent to me.

(If appropriate:) I intend for this distribution to be made during the 200{_} tax year.  Please ensure to complete the transaction prior to December 31, 200{_}.

Sincerely,

{Your Name}
{Address}