FundSvcs Community

They are always *charitable*. The only consideration is whether they are considered an RMD or a QCD. Both are recorded on a donor record. Both count. And both require a receipt to the individual. QCDs are not tax-deductible as they represent a tax-free withdrawal. And they may also satisfy the donor's RMD. Nevertheless, they are still recorded, counted, and receipted. As for the latter, it is helpful to note on the receipt that they were, in fact, a QCD. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu> wrote: > Can someone please provide some insight into how IRA distributions should > be processed? We are a little unsure if funds received from IRA > institutions should always be considered non-charitable, or if it depends > on the specific circumstances. For example, we received a check from > Vanguard, payable to our institution c/o the donor at the donor’s address, > that the donor has told us is a QCD check. Does this mean that it > technically is not a tax-deductible gift? Is this generally the case with > checks received from IRA institutions? If the gift is tax-deductible, > should the receipt go to Vanguard or to the donor (i.e., who gets the hard > credit)? > > > > Thanks, > > Katie > > > > Katie Campbell Yates > > Advancement Coordinator > > Pittsburgh Theological Seminary > > (P) 412-924-1376 > > (F) 412-924-1776 > > kyates@pts.edu > > > > [image: PTSLogoFnl-4C-PC] > > > > >

Donors must report these distributions on their tax return so telling them they are not "tax-deductible" could really confuse them. I would not go that far. Rather, I would simply state the distribution was reported as being a qualified charitable distribution, and for them to seek guidance from their tax advisor regarding how to report the distribution. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 12:56 PM Katharine Yates <kyates@pts.edu> wrote: > Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift > still “counts” and should be recorded, but I wasn’t sure if we needed to > put some language on the receipt about the amount not being tax-deductible, > as well as who the receipt should go to. Thank you for clearing this up for > me! > > > > Katie > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Tuesday, April 23, 2019 12:02 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] IRA Distributions > > > > They are always * charitable*. The only consideration is whether they > are considered an RMD or a QCD. Both are recorded on a donor record. Both > count. And both require a receipt to the individual. > > > > QCDs are not tax-deductible as they represent a tax-free withdrawal. And > they may also satisfy the donor's RMD. Nevertheless, they are still > recorded, counted, and receipted. As for the latter, it is helpful to note > on the receipt that they were, in fact, a QCD. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu> wrote: > > Can someone please provide some insight into how IRA distributions should > be processed? We are a little unsure if funds received from IRA > institutions should always be considered non-charitable, or if it depends > on the specific circumstances. For example, we received a check from > Vanguard, payable to our institution c/o the donor at the donor’s address, > that the donor has told us is a QCD check. Does this mean that it > technically is not a tax-deductible gift? Is this generally the case with > checks received from IRA institutions? If the gift is tax-deductible, > should the receipt go to Vanguard or to the donor (i.e., who gets the hard > credit)? > > > > Thanks, > > Katie > > > > Katie Campbell Yates > > Advancement Coordinator > > Pittsburgh Theological Seminary > > (P) 412-924-1376 > > (F) 412-924-1776 > > kyates@pts.edu > > > > [image: PTSLogoFnl-4C-PC] > > > > > >

Can someone please provide some insight into how IRA distributions should be processed? We are a little unsure if funds received from IRA institutions should always be considered non-charitable, or if it depends on the specific circumstances. For example, we received a check from Vanguard, payable to our institution c/o the donor at the donor's address, that the donor has told us is a QCD check. Does this mean that it technically is not a tax-deductible gift? Is this generally the case with checks received from IRA institutions? If the gift is tax-deductible, should the receipt go to Vanguard or to the donor (i.e., who gets the hard credit)? Thanks, Katie Katie Campbell Yates Advancement Coordinator Pittsburgh Theological Seminary (P) 412-924-1376 (F) 412-924-1776 kyates@pts.edu<mailto:kyates@pts.edu> [PTSLogoFnl-4C-PC]

Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift still “counts” and should be recorded, but I wasn’t sure if we needed to put some language on the receipt about the amount not being tax-deductible, as well as who the receipt should go to. Thank you for clearing this up for me! Katie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 12:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] IRA Distributions They are always charitable. The only consideration is whether they are considered an RMD or a QCD. Both are recorded on a donor record. Both count. And both require a receipt to the individual. QCDs are not tax-deductible as they represent a tax-free withdrawal. And they may also satisfy the donor's RMD. Nevertheless, they are still recorded, counted, and receipted. As for the latter, it is helpful to note on the receipt that they were, in fact, a QCD. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Can someone please provide some insight into how IRA distributions should be processed? We are a little unsure if funds received from IRA institutions should always be considered non-charitable, or if it depends on the specific circumstances. For example, we received a check from Vanguard, payable to our institution c/o the donor at the donor’s address, that the donor has told us is a QCD check. Does this mean that it technically is not a tax-deductible gift? Is this generally the case with checks received from IRA institutions? If the gift is tax-deductible, should the receipt go to Vanguard or to the donor (i.e., who gets the hard credit)? Thanks, Katie Katie Campbell Yates Advancement Coordinator Pittsburgh Theological Seminary (P) 412-924-1376 (F) 412-924-1776 kyates@pts.edu<mailto:kyates@pts.edu> [PTSLogoFnl-4C-PC]

I am trying to define for my team of gift processors the difference between a Required Minimum Distribution and a Qualified Charitable Distribution, and how to tell the difference when we receive a check from an IRA. I reached out to our planned giving director and she advised that "We would never see a gift of 'RMD' because that money would go directly to the donor and the donor would send us a check, which would not be a QCD". I also attempted to contact Fidelity to find out how they would designate a QCD on their remittance and was told that they don't make any assertions on a gift because they wouldn't know if the charity was qualified or not; they will just put the charity's name on the check when their client requests a distribution. How comfortable should I be that an IRA distribution check coming directly from an IRA administrator is a QCD? Obviously the only reason I want to make the distinction is because of the letter content for a QCD. Thank you everyone for all the fun I have reading the questions and answers on this board. I couldn't survive without you! Best, Dale Hailey Sutter Health System Office haileyds@sutterhealth.org

RMD often come to us directly from the financial institution. What you were told by staff may be what they have seen but it is not a certainty. Your only real stance is that you know it is an RMD or a QCD when the check itself or the accompanying letter identifies one or the other. If no such indication is present your only accurate alternative is to call the check issuer. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, May 6, 2019 at 7:59 PM Dale Hailey < 0000000b1f5e7d19-dmarc-request@listserv.fundsvcs.org> wrote: > I am trying to define for my team of gift processors the difference > between a Required Minimum Distribution and a Qualified Charitable > Distribution, and how to tell the difference when we receive a check from > an IRA. > > I reached out to our planned giving director and she advised that "We > would never see a gift of 'RMD' because that money would go directly to the > donor and the donor would send us a check, which would not be a QCD". I > also attempted to contact Fidelity to find out how they would designate a > QCD on their remittance and was told that they don't make any assertions on > a gift because they wouldn't know if the charity was qualified or not; they > will just put the charity's name on the check when their client requests a > distribution. > > How comfortable should I be that an IRA distribution check coming directly > from an IRA administrator is a QCD? Obviously the only reason I want to > make the distinction is because of the letter content for a QCD. > > Thank you everyone for all the fun I have reading the questions and > answers on this board. I couldn't survive without you! > > Best, > Dale Hailey > Sutter Health System Office > haileyds@sutterhealth.org >

This is a link to Fidelity's explanation of donating to a charity using a qualified charitable distribution: https://www.fidelity.com/learning-center/personal-finance/retirement/qcds-the-basics Qualified Charitable Distributions - Fidelity<https://www.fidelity.com/learning-center/personal-finance/retirement/qcds-the-basics> www.fidelity.com If you are age 70½ or older, IRS rules require you to take required minimum distributions (RMDs) each year from your tax-deferred retirement accounts. This additional taxable income may push you into a higher tax bracket and may also reduce your eligibility for certain tax credits and deductions ... If you read through the article, you will see that an individual may give a portion, all, or even more than the amount of the required minimum distribution (up to $100,000) from his/her IRA once he/she has reached 70.5. The critical question is not whether or not the donation is the required minimum distribution. The question is whether or not it is a qualified charitable distribution. It is very likely that a check received directly from a financial institution from someone's IRA is a qualified charitable distribution. It is important for you to be sure that the donor has reached age 70.5, and that their total giving for the calendar year from the IRA does not exceed $100,000. In the years before my retirement when I was the primary contact for donors giving via their IRA, I can think of only 2 cases where the donor had not reached 70.5. (One didn't realize the restriction, and we returned the funds to his IRA. He then requested a distribution about 6 months later. Another fellow knew he had not reached the age, but still wanted to give.) We had one wealthy donor who directed two $100,000 checks to be distributed in the same calendar year, a very rare event! We tried to minimize confusion by having donors contact Gift Recording prior to requesting the distribution so that we would be aware that the qualified charitable distribution was coming. Our problems occurred when the check arrived with absolutely no indication of the donor's name. As others would state---not an attorney or accountant Kathleen C. Martin Associate Director for Advancement Services, Emerita Dartmouth College ________________________________ From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of John Taylor <johntaylorconsulting@GMAIL.COM> Sent: Monday, May 6, 2019 8:03 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] IRA Distributions RMD often come to us directly from the financial institution. What you were told by staff may be what they have seen but it is not a certainty. Your only real stance is that you know it is an RMD or a QCD when the check itself or the accompanying letter identifies one or the other. If no such indication is present your only accurate alternative is to call the check issuer. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, May 6, 2019 at 7:59 PM Dale Hailey <0000000b1f5e7d19-dmarc-request@listserv.fundsvcs.org<mailto:0000000b1f5e7d19-dmarc-request@listserv.fundsvcs.org>> wrote: I am trying to define for my team of gift processors the difference between a Required Minimum Distribution and a Qualified Charitable Distribution, and how to tell the difference when we receive a check from an IRA. I reached out to our planned giving director and she advised that "We would never see a gift of 'RMD' because that money would go directly to the donor and the donor would send us a check, which would not be a QCD". I also attempted to contact Fidelity to find out how they would designate a QCD on their remittance and was told that they don't make any assertions on a gift because they wouldn't know if the charity was qualified or not; they will just put the charity's name on the check when their client requests a distribution. How comfortable should I be that an IRA distribution check coming directly from an IRA administrator is a QCD? Obviously the only reason I want to make the distinction is because of the letter content for a QCD. Thank you everyone for all the fun I have reading the questions and answers on this board. I couldn't survive without you! Best, Dale Hailey Sutter Health System Office haileyds@sutterhealth.org<mailto:haileyds@sutterhealth.org>

Thank you John and Kathleen! On Tuesday, May 7, 2019, 11:56:28 AM PDT, Kathleen C. Martin <Kathleen.C.Martin@DARTMOUTH.EDU> wrote: This is a link to Fidelity's explanation of donating to a charity using a qualified charitable distribution: https://www.fidelity.com/learning-center/personal-finance/retirement/qcds-the-basics | Qualified Charitable Distributions - Fidelitywww.fidelity.comIf you are age 70½ or older, IRS rules require you to take required minimum distributions (RMDs) each year from your tax-deferred retirement accounts. This additional taxable income may push you into a higher tax bracket and may also reduce your eligibility for certain tax credits and deductions ... | If you read through the article, you will see that an individual may give a portion, all, or even more than the amount of the required minimum distribution (up to $100,000) from his/her IRA once he/she has reached 70.5.  The critical question is not whether or not the donation is the required minimum distribution.  The question is whether or not it is a qualified charitable distribution. It is very likely that a check received directly from a financial institution from someone's IRA is a qualified charitable distribution.  It is important for you to be sure that the donor has reached age 70.5, and that their total giving for the calendar year from the IRA does not exceed $100,000.  In the years before my retirement when I was the primary contact for donors giving via their IRA, I can think of only 2 cases where the donor had not reached 70.5.  (One didn't realize the restriction, and we returned the funds to his IRA.  He then requested a distribution about 6 months later.  Another fellow knew he had not reached the age, but still wanted to give.)  We had one wealthy donor who directed two $100,000 checks to be distributed in the same calendar year, a very rare event!  We tried to minimize confusion by having donors contact Gift Recording prior to requesting the distribution so that we would be aware that the qualified charitable distribution was coming.  Our problems occurred when the check arrived with absolutely no indication of the donor's name. As others would state---not an attorney or accountant Kathleen C. MartinAssociate Director for Advancement Services, EmeritaDartmouth CollegeFrom: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> on behalf of John Taylor <johntaylorconsulting@GMAIL.COM> Sent: Monday, May 6, 2019 8:03 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] IRA Distributions RMD often come to us directly from the financial institution.  What you were told by staff may be what they have seen but it is not a certainty. Your only real stance is that you know it is an RMD or a QCD when the check itself or the accompanying letter identifies one or the other.  If no such indication is present your only accurate alternative is to call the check issuer. John John H. TaylorPrincipal, John H. Taylor Consulting 2604 Sevier St. Durham, NC   27705johntaylorconsulting@gmail.com919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Mon, May 6, 2019 at 7:59 PM Dale Hailey <0000000b1f5e7d19-dmarc-request@listserv.fundsvcs.org> wrote: I am trying to define for my team of gift processors the difference between a Required Minimum Distribution and a Qualified Charitable Distribution, and how to tell the difference when we receive a check from an IRA.  I reached out to our planned giving director and she advised that "We would never see a gift of 'RMD' because that money would go directly to the donor and the donor would send us a check, which would not be a QCD".  I also attempted to contact Fidelity to find out how they would designate a QCD on their remittance and was told that they don't make any assertions on a gift because they wouldn't know if the charity was qualified or not; they will just put the charity's name on the check when their client requests a distribution. How comfortable should I be that an IRA distribution check coming directly from an IRA administrator is a QCD?  Obviously the only reason I want to make the distinction is because of the letter content for a QCD. Thank you everyone for all the fun I have reading the questions and answers on this board.  I couldn't survive without you! Best, Dale Hailey Sutter Health System Office haileyds@sutterhealth.org

Required Minimum Distribution - and a QCD and satisfy and RMD obligation - FYI :-) John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, May 21, 2019 at 9:48 AM Phillips, Julie A. < jphillips@westfield.ma.edu> wrote: > Ok…going really basic here… > > If QCD stands for Qualified Charitable Donation… > > > > What does RMD stand for… > > > > > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Tuesday, April 23, 2019 1:00 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] IRA Distributions > > > > Caution External Email: This email originated outside of WSU. Do not > click links, open attachments, or respond if it appears to be suspicious. > > Donors must report these distributions on their tax return so telling them > they are not "tax-deductible" could really confuse them. I would not go > that far. Rather, I would simply state the distribution was reported as > being a qualified charitable distribution, and for them to seek guidance > from their tax advisor regarding how to report the distribution. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Tue, Apr 23, 2019 at 12:56 PM Katharine Yates <kyates@pts.edu> wrote: > > Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift > still “counts” and should be recorded, but I wasn’t sure if we needed to > put some language on the receipt about the amount not being tax-deductible, > as well as who the receipt should go to. Thank you for clearing this up for > me! > > > > Katie > > > > *From:* Advancement Services Discussion List [mailto: > FUNDSVCS@LISTSERV.FUNDSVCS.ORG] *On Behalf Of *John Taylor > *Sent:* Tuesday, April 23, 2019 12:02 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* Re: [FUNDSVCS] IRA Distributions > > > > They are always *charitable*. The only consideration is whether they are > considered an RMD or a QCD. Both are recorded on a donor record. Both > count. And both require a receipt to the individual. > > > > QCDs are not tax-deductible as they represent a tax-free withdrawal. And > they may also satisfy the donor's RMD. Nevertheless, they are still > recorded, counted, and receipted. As for the latter, it is helpful to note > on the receipt that they were, in fact, a QCD. > > > > John > > > > John H. Taylor > > Principal, John H. Taylor Consulting > > 2604 Sevier St. > > Durham, NC 27705 > > johntaylorconsulting@gmail.com > > 919.816.5903 (cell/text) > > > > Serving the Advancement Community Since 1987 > > > > > > On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu> wrote: > > Can someone please provide some insight into how IRA distributions should > be processed? We are a little unsure if funds received from IRA > institutions should always be considered non-charitable, or if it depends > on the specific circumstances. For example, we received a check from > Vanguard, payable to our institution c/o the donor at the donor’s address, > that the donor has told us is a QCD check. Does this mean that it > technically is not a tax-deductible gift? Is this generally the case with > checks received from IRA institutions? If the gift is tax-deductible, > should the receipt go to Vanguard or to the donor (i.e., who gets the hard > credit)? > > > > Thanks, > > Katie > > > > Katie Campbell Yates > > Advancement Coordinator > > Pittsburgh Theological Seminary > > (P) 412-924-1376 > > (F) 412-924-1776 > > kyates@pts.edu > > > > [image: PTSLogoFnl-4C-PC] > > > > > >

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds <https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds> Donna Rex 105 Osprey Ridge Way Ponte Vedra Beach, FL 32082 donnafund@gmail.com Mobile 904.910.9140 > On May 21, 2019, at 12:48 PM, Phillips, Julie A. <jphillips@WESTFIELD.MA.EDU> wrote: > > Ok…going really basic here… > If QCD stands for Qualified Charitable Donation… > > What does RMD stand for… > > > > From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor > Sent: Tuesday, April 23, 2019 1:00 PM > To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG > Subject: Re: [FUNDSVCS] IRA Distributions > > Caution External Email: This email originated outside of WSU. Do not click links, open attachments, or respond if it appears to be suspicious. > > Donors must report these distributions on their tax return so telling them they are not "tax-deductible" could really confuse them. I would not go that far. Rather, I would simply state the distribution was reported as being a qualified charitable distribution, and for them to seek guidance from their tax advisor regarding how to report the distribution. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com <mailto:johntaylorconsulting@gmail.com> > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Tue, Apr 23, 2019 at 12:56 PM Katharine Yates <kyates@pts.edu <mailto:kyates@pts.edu>> wrote: > Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift still “counts” and should be recorded, but I wasn’t sure if we needed to put some language on the receipt about the amount not being tax-deductible, as well as who the receipt should go to. Thank you for clearing this up for me! > > Katie > > From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG <mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor > Sent: Tuesday, April 23, 2019 12:02 PM > To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG <mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> > Subject: Re: [FUNDSVCS] IRA Distributions > > They are always charitable. The only consideration is whether they are considered an RMD or a QCD. Both are recorded on a donor record. Both count. And both require a receipt to the individual. > > QCDs are not tax-deductible as they represent a tax-free withdrawal. And they may also satisfy the donor's RMD. Nevertheless, they are still recorded, counted, and receipted. As for the latter, it is helpful to note on the receipt that they were, in fact, a QCD. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com <mailto:johntaylorconsulting@gmail.com> > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu <mailto:kyates@pts.edu>> wrote: > Can someone please provide some insight into how IRA distributions should be processed? We are a little unsure if funds received from IRA institutions should always be considered non-charitable, or if it depends on the specific circumstances. For example, we received a check from Vanguard, payable to our institution c/o the donor at the donor’s address, that the donor has told us is a QCD check. Does this mean that it technically is not a tax-deductible gift? Is this generally the case with checks received from IRA institutions? If the gift is tax-deductible, should the receipt go to Vanguard or to the donor (i.e., who gets the hard credit)? > > Thanks, > Katie > > Katie Campbell Yates > Advancement Coordinator > Pittsburgh Theological Seminary > (P) 412-924-1376 > (F) 412-924-1776 > kyates@pts.edu <mailto:kyates@pts.edu> > > <image001.png> > >

Ok…going really basic here… If QCD stands for Qualified Charitable Donation… What does RMD stand for… From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 1:00 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] IRA Distributions Caution External Email: This email originated outside of WSU. Do not click links, open attachments, or respond if it appears to be suspicious. Donors must report these distributions on their tax return so telling them they are not "tax-deductible" could really confuse them. I would not go that far. Rather, I would simply state the distribution was reported as being a qualified charitable distribution, and for them to seek guidance from their tax advisor regarding how to report the distribution. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 12:56 PM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift still “counts” and should be recorded, but I wasn’t sure if we needed to put some language on the receipt about the amount not being tax-deductible, as well as who the receipt should go to. Thank you for clearing this up for me! Katie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 12:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] IRA Distributions They are always charitable. The only consideration is whether they are considered an RMD or a QCD. Both are recorded on a donor record. Both count. And both require a receipt to the individual. QCDs are not tax-deductible as they represent a tax-free withdrawal. And they may also satisfy the donor's RMD. Nevertheless, they are still recorded, counted, and receipted. As for the latter, it is helpful to note on the receipt that they were, in fact, a QCD. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Can someone please provide some insight into how IRA distributions should be processed? We are a little unsure if funds received from IRA institutions should always be considered non-charitable, or if it depends on the specific circumstances. For example, we received a check from Vanguard, payable to our institution c/o the donor at the donor’s address, that the donor has told us is a QCD check. Does this mean that it technically is not a tax-deductible gift? Is this generally the case with checks received from IRA institutions? If the gift is tax-deductible, should the receipt go to Vanguard or to the donor (i.e., who gets the hard credit)? Thanks, Katie Katie Campbell Yates Advancement Coordinator Pittsburgh Theological Seminary (P) 412-924-1376 (F) 412-924-1776 kyates@pts.edu<mailto:kyates@pts.edu> [PTSLogoFnl-4C-PC]

Required minimum distribution. CJ Jones Associate Director of Donor Services, Purdue Research Foundation Dauch Alumni Center | 403 W Wood St | West Lafayette, IN 47907 wcjones@prf.org<mailto:wcjones@prf.org> | DAUCH 3118 | (765) 496-3116 [cid:image002.png@01D50FD3.A3A42F60]<http://www.purdue.edu/evertrue> [cid:image001.jpg@01D50FD3.A3ABD080] <https://takegiantleaps.com/> WARNING: CONFIDENTIALITY NOTICE The information enclosed with this transmission is the private, confidential property of the sender, and is privileged communication intended solely for the individual indicated above. If you are not the intended recipient, you are notified that any review, disclosure, copying, distribution, or the taking of any other action relevant to the contents of this transmission are strictly prohibited. If you have received this email in error, or are not the named recipient(s), please notify the sender immediately by sending a reply to this message that it was sent in error and delete this email from your system. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Phillips, Julie A. Sent: Tuesday, May 21, 2019 12:49 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] IRA Distributions Ok…going really basic here… If QCD stands for Qualified Charitable Donation… What does RMD stand for… From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 1:00 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] IRA Distributions Caution External Email: This email originated outside of WSU. Do not click links, open attachments, or respond if it appears to be suspicious. Donors must report these distributions on their tax return so telling them they are not "tax-deductible" could really confuse them. I would not go that far. Rather, I would simply state the distribution was reported as being a qualified charitable distribution, and for them to seek guidance from their tax advisor regarding how to report the distribution. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 12:56 PM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift still “counts” and should be recorded, but I wasn’t sure if we needed to put some language on the receipt about the amount not being tax-deductible, as well as who the receipt should go to. Thank you for clearing this up for me! Katie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 12:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] IRA Distributions They are always charitable. The only consideration is whether they are considered an RMD or a QCD. Both are recorded on a donor record. Both count. And both require a receipt to the individual. QCDs are not tax-deductible as they represent a tax-free withdrawal. And they may also satisfy the donor's RMD. Nevertheless, they are still recorded, counted, and receipted. As for the latter, it is helpful to note on the receipt that they were, in fact, a QCD. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Can someone please provide some insight into how IRA distributions should be processed? We are a little unsure if funds received from IRA institutions should always be considered non-charitable, or if it depends on the specific circumstances. For example, we received a check from Vanguard, payable to our institution c/o the donor at the donor’s address, that the donor has told us is a QCD check. Does this mean that it technically is not a tax-deductible gift? Is this generally the case with checks received from IRA institutions? If the gift is tax-deductible, should the receipt go to Vanguard or to the donor (i.e., who gets the hard credit)? Thanks, Katie Katie Campbell Yates Advancement Coordinator Pittsburgh Theological Seminary (P) 412-924-1376 (F) 412-924-1776 kyates@pts.edu<mailto:kyates@pts.edu> [PTSLogoFnl-4C-PC]

Got it. Thanks ☺ From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Jones, Wayne C. Sent: Tuesday, May 21, 2019 12:50 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] IRA Distributions Caution External Email: This email originated outside of WSU. Do not click links, open attachments, or respond if it appears to be suspicious. Required minimum distribution. CJ Jones Associate Director of Donor Services, Purdue Research Foundation Dauch Alumni Center | 403 W Wood St | West Lafayette, IN 47907 wcjones@prf.org<mailto:wcjones@prf.org> | DAUCH 3118 | (765) 496-3116 [cid:image002.png@01D50FD3.DBC6C290]<http://www.purdue.edu/evertrue> [cid:image003.jpg@01D50FD3.DBC6C290] <https://takegiantleaps.com/> WARNING: CONFIDENTIALITY NOTICE The information enclosed with this transmission is the private, confidential property of the sender, and is privileged communication intended solely for the individual indicated above. If you are not the intended recipient, you are notified that any review, disclosure, copying, distribution, or the taking of any other action relevant to the contents of this transmission are strictly prohibited. If you have received this email in error, or are not the named recipient(s), please notify the sender immediately by sending a reply to this message that it was sent in error and delete this email from your system. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Phillips, Julie A. Sent: Tuesday, May 21, 2019 12:49 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] IRA Distributions Ok…going really basic here… If QCD stands for Qualified Charitable Donation… What does RMD stand for… From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 1:00 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] IRA Distributions Caution External Email: This email originated outside of WSU. Do not click links, open attachments, or respond if it appears to be suspicious. Donors must report these distributions on their tax return so telling them they are not "tax-deductible" could really confuse them. I would not go that far. Rather, I would simply state the distribution was reported as being a qualified charitable distribution, and for them to seek guidance from their tax advisor regarding how to report the distribution. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 12:56 PM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Thanks, John. Sorry I wasn’t clear in my initial email – I know the gift still “counts” and should be recorded, but I wasn’t sure if we needed to put some language on the receipt about the amount not being tax-deductible, as well as who the receipt should go to. Thank you for clearing this up for me! Katie From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>] On Behalf Of John Taylor Sent: Tuesday, April 23, 2019 12:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] IRA Distributions They are always charitable. The only consideration is whether they are considered an RMD or a QCD. Both are recorded on a donor record. Both count. And both require a receipt to the individual. QCDs are not tax-deductible as they represent a tax-free withdrawal. And they may also satisfy the donor's RMD. Nevertheless, they are still recorded, counted, and receipted. As for the latter, it is helpful to note on the receipt that they were, in fact, a QCD. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Apr 23, 2019 at 11:57 AM Katharine Yates <kyates@pts.edu<mailto:kyates@pts.edu>> wrote: Can someone please provide some insight into how IRA distributions should be processed? We are a little unsure if funds received from IRA institutions should always be considered non-charitable, or if it depends on the specific circumstances. For example, we received a check from Vanguard, payable to our institution c/o the donor at the donor’s address, that the donor has told us is a QCD check. Does this mean that it technically is not a tax-deductible gift? Is this generally the case with checks received from IRA institutions? If the gift is tax-deductible, should the receipt go to Vanguard or to the donor (i.e., who gets the hard credit)? Thanks, Katie Katie Campbell Yates Advancement Coordinator Pittsburgh Theological Seminary (P) 412-924-1376 (F) 412-924-1776 kyates@pts.edu<mailto:kyates@pts.edu> [PTSLogoFnl-4C-PC]