Since 2023, the Secure Act 2.0 has allowed taxpayers 70 ½ or older to establish a charitable gift annuity with a qualified charitable distribution (QCD) from their individual retirement account (IRA). The Duke University community has embraced these types of gifts because our donors find them a creative and tax-wise way to make an impact at Duke. Let’s talk about the pros and cons of a charitable gift annuity funded via an IRA.  

PROS 

• Assets must come from a traditional IRA, not a Roth IRA, 401(k), 403(b), etc. 
• A charitable gift annuity creates a fixed lifetime income stream for you and/or your spouse. 
• A donor can make a gift of up to $55,000 in 2026. Historically, the maximum gift amounts have been indexed annually for inflation—2027 gift amounts are pending.  
• A married couple can each contribute up to $55,000 from their respective IRAs in 2026.   
• Since the QCD from an IRA will be used for a direct charitable donation, the QCD transfer won’t increase the donor’s taxable income.  
• For donors 73 or older, the QCD will count towards your required minimum distribution. 
• A charitable gift annuity funded via an IRA is a way to make a large gift to Duke and get something back. 
• Donors designate how the gift annuity’s future proceeds will be used at Duke.  

CONS 

• This giving option is a one-time election that can be used only in a single calendar year during a donor’s lifetime.  
• QCD-funded gift annuities do not create a charitable tax deduction.  
• The amounts paid to you from your gift annuity will be fully taxable as ordinary income.  

If you would like to consider a charitable gift annuity funded with a QCD from your IRA please feel free to reach out to our savvy Gift Planning team at giftplanning@duke.edu or at 919-681-0464. We’d love to provide you with a commitment-free illustration so you can see the power of this type of gift.   

^{This information is provided with the understanding that neither Duke University nor the authors are providing legal, accounting, or other professional advice or counsel. Please consult your personal counsel about the financial, tax, and legal implications of any gift.} 

About the author

Sarah Fish 82

sarah.fish@duke.edu

With three decades of experience in gift planning and development at Duke, Sarah serves as the stewardship coordinator for the Gift Planning Office. Sarah manages the university’s charitable trust and annuity program and oversees bequests from generous donors who have included Duke in their estate plans. Sarah is a third-generation graduate of Trinity College of Arts & Sciences and bleeds blue for all Duke sports. When she’s not at work, Sarah loves spending time with her family, attending as many Duke sporting events as possible, and catering to her two rambunctious poodles.