If you have the stock certificates in your possession, please send the unendorsed certificates and signed stock powers, in separate envelopes, by registered mail to:

At the time of the transfer, please let us know the name and number of shares you are transferring by contacting Richard Lorenc, Executive Vice President at (404) 554-9980, extension 224 or [email protected] . Richard would also be happy to answer any questions you might have.

It is easy and secure to transfer stock electronically. Simply ask your broker to contact ours with the following information:

When you make a gift of stock to FEE you will avoid the tax on capital gains and receive a charitable deduction for the full fair market value of the stock.

Qualified Charitable Distributions from IRAs



Important Opportunity If You Are Aged 70 ½ or Older

Qualified Charitable Distributions (“QCDs”) may be the single most tax-efficient way for you to make charitable donations if

• you are a U.S. taxpayer aged 70½ or older

• with significant assets in one or more IRAs and

• adjusted gross income over about $260,000.

This is true from both a current-year perspective and an estate-planning perspective.

From a current-year perspective, QCDs enable you to exclude up to $100,000 of your required minimum IRA distribution from taxable income by directly gifting it to qualified charities.

You could simply take your required minimum IRA distribution, add it to your adjusted gross income and then take deductions for your charitable contributions on Schedule A—same “bottom line.”

However, many “soak-the-rich” provisions of the tax code are triggered by the “top line”—adjusted gross income—without allowance for deductions. As your income rises above certain thresholds, some as low as $260,000 (single) or $310,000 (joint), you are increasingly vulnerable to concerns such as

• Phase-out of Schedule A deductions

• Increased Medicare premiums

• The 3.8% surtax on investment income

• Alternative minimum tax

QCDs reduce the impact of these income-driven issues because they are excluded from adjusted gross income.

From an estate-planning perspective, a QCD is a better way to reduce your estate than a charitable donation of appreciated securities.

If you bequeath to your heirs those Apple shares that you bought at $50, there will be estate tax on the full value, but no capital gains tax. If you bequeath an IRA to your heirs, not only will your estate pay the estate tax on the full amount, your heirs will pay ordinary income tax when they receive the cash.

Said differently, a QCD enables both you and your heirs to avoid paying ordinary income tax on the full amount of the gift. A donation of appreciated securities only enables you to avoid paying capital gains tax on the amount of the unrealized gain, a tax that your heirs would not be subject to in any event.

In December 2015, Congress made QCDs a permanent feature of the tax code, no longer subject to year-by-year extensions. The tax benefits of QCDs are limited to $100,000 in total gifts per taxpayer per year on a “use it or lose it” basis.

One important limitation of QCDs is that that the gifts must be made to “eligible charities,” which generally means operating charities like FEE, and not intermediate entities such as grant-making foundations, donor-advised funds, private foundations, supporting organizations, charitable gift annuities, charitable remainder trusts, and pooled income funds.

In order to take advantage of the important benefits of QCDs, we suggest that you:

Consult your legal or tax advisor. We cannot give legal or tax advice and the information provided here may be incomplete or unsuitable for your particular circumstances.

Contact your IRA plan administrator to determine the form of instructions that it requires for QCDs. (Click here for a sample letter of instruction that provides the information that most administrators will require for making a QCD to FEE, whether by check or by wire transfer.)

Contact FEE to let us know the arrangements so that we can facilitate the distribution and provide you the necessary documentation for tax reporting. (Click here for a sample email for that purpose.)

For assistance with the transfer, questions about the QCD and other planned giving vehicles, please contact Executive Vice President Richard Lorenc by emailing [email protected] or calling (404) 554-9980.

Frequently Asked Questions About Qualified Charitable Distributions

Does a QCD count toward my minimum required distribution for the year?

Yes.

Is a QCD reportable as income?

No.

Does a QCD reportable as a charitable deduction?

No, because it’s not reportable as income in the first place. Therefore, it isn’t subject to any phase-outs that would otherwise apply to Schedule A deductions.

Can I apply proceeds from a distribution that I’ve already taken from my IRA?

No. The distribution must go directly from the IRA to the charity. Unlike certain rollovers, QCDs cannot pass through the account owner’s hands.

What kinds of charities are eligible?

Generally, operating charities like FEE. Intermediate entities are generally not eligible, for example, grant-making foundations, donor-advised funds, private foundations, supporting organizations, charitable gift annuities, charitable remainder trusts, and pooled income funds

Can a married couple filing jointly make QCDs totaling $200,000?

Yes, provided that each spouse has his or her own IRA and each does a QCD of no more than $100,000.

Can a QCD be for more than $100,000?

Yes, although the excess over $100,000 will be counted as a taxable distribution, and any tax benefit on such excess would have to be gotten through claiming a charitable deduction on Schedule A.

What if I turn 70 ½ during the year?

To be eligible for QCD treatment, you must be 70 ½ or older at the time of the distribution.

Can 401(k) or 403(b) accounts be used?

No; only after the funds have been rolled into an IRA can they be used for a QCD.

What about state income taxes?

You will need to consult your advisor, as each state has its own approach.

Can I designate a QCD for a specific program or purpose at FEE?

Yes. However, you cannot receive any personal benefit from the donation.