A Tax-Smart Way to Give in 2025
What is a Qualified Charitable Distribution (QCD)?
A Qualified Charitable Distribution (QCD) is a tax-free distribution from your Individual Retirement Account (IRA) directly to a qualified charitable organization like Americans for Ben-Gurion University (A4BGU).
It’s an impactful way to support causes you care about while enjoying financial benefits. The IRA-Charity Rollover is now permanent. For any QCD (either outright or to establish a QCD Charitable Gift Annuity), there is no income tax charitable deduction. The tax benefits come from the tax-free withdrawal from the IRA.
Who Can Participate?
- Donors aged 70½ or older
- Funds must come directly from a traditional IRA (for other accounts like 401(k)s, funds must first be rolled over into an IRA)
Living Legacy Garden at Ben-Gurion University of the Negev (BGU)
Benefits of a QCD
- Tax Savings: Avoid including the distribution in your adjusted gross income (AGI), which may reduce your taxable income.
- Count toward RMDs: Satisfy your required minimum distributions (RMDs) without increasing your tax liability.
- Support a cause you care about: Advance A4BGU’s mission to sustain David Ben-Gurion’s vision of a world-class institution of education and research in the Negev desert. The future of Israel depends on excellence in higher education and the research that is happening at BGU.
Key Guidelines for 2025
- Annual Limit: QCDs are limited to $108,000 per person per year ($216,000 for married couples filing jointly if both spouses have eligible IRAs).
- Direct Payment: Distributions must be made directly from your IRA administrator to A4BGU.
- Eligible Contributions: Funds can be used for outright gifts or to fulfill charitable pledges. They cannot be directed to donor-advised funds or private foundations.
New in 2025: Charitable Gift Annuity (CGA) Option
Use up to $54,000 of your QCD limit to establish a Charitable Gift Annuity (CGA).
- Can only be done in one calendar year (no carryovers or new QCD CGAs in subsequent years)
- CGA must benefit the IRA owner (and spouse if a two-life annuity is desired)
- Annual CGA payments are subject to ordinary income taxes
- Counts toward the total QCD limit for the year
How to Make a QCD to A4BGU
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- Contact Your IRA Administrator: Request a distribution directly to A4BGU and provide the following information:
- Legal Name: Americans for Ben-Gurion University, Inc.
- EIN: 23-7270753
- Mailing Address: Americans for Ben-Gurion University, P.O. Box 7410310, Chicago, IL 60674-0310
- Make checks payable to: Americans for Ben-Gurion University
- Electronic Transfers: Contact A4BGU for wiring instructions (reach out to your A4BGU representative, e-mail [email protected] or call 212-687-7721).
- Notify A4BGU: Let us know your gift is on its way so we can ensure it is processed correctly. Please call Janice Fortune at 646-452-3707 to confirm account details prior to initiating a wire transfer.
- Contact Your IRA Administrator: Request a distribution directly to A4BGU and provide the following information:
Need a Sample Letter?
Simplify your request with our sample letter to your IRA administrator. Download a letter here.
We’re Here to Help
For questions or assistance, contact us:
- Phone: 646-452-3689
- Email: [email protected]
Thank you for your commitment to Americans for Ben-Gurion University and for supporting the future of the Negev and Israel!