News You Can Use: The Tax-Savvy Gift That Pays You Back

Use your IRA to establish a charitable gift annuity

Beginning January 1, 2023, the Secure Act 2.0 allows taxpayers to establish a charitable gift annuity with a qualified charitable distribution (QCD) from their individual retirement account (IRA). With a charitable gift annuity, a donor makes a gift to a public charity—like Duke—in exchange for a fixed, lifetime payment. While taxpayers have established gift annuities with gifts of cash or stock for many years, the ability to establish a gift annuity with a transfer from an IRA is new.

As The Wall Street Journal recently reported, “the new law comes as the wealthiest generation in history begins to retire, with much of that wealth in retirement accounts.” This tax-savvy giving strategy now offers retirees the opportunity to make a charitable impact while receiving fixed payments for life.

Read the complete WSJ article to learn more about this planned giving option, or contact Duke’s Office of Gift Planning at (919) 681-0464 or giftplanning@duke.edu.


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.

TAGS: IRA Charitable Giving Strategies Tax Considerations qualified charitable distribution charitable gift annuities SECURE Act

About the author

Gift Planning

giftplanning@duke.edu

Duke University’s Office of Gift Planning specializes in charitable gift planning for estates, charitable trusts and annuities, and other complex current and future gift plans.

For more information, please contact the Duke University Office of Gift Planning.