The IRA Charitable Rollover Gift Annuity Plan

Give from Your IRA and Receive a Lifetime of Payments

Donors over 70½ can receive a lifetime of payments in return for a contribution to Population Connection from their IRA account. This gift plan combines a charitable gift annuity and a Qualified Charitable Distribution (QCD) from an IRA. Let’s see how it works.

Charitable Gift Annuity — A charitable gift annuity is a simple contract between you and Population Connection promising to pay you a fixed amount of money each year for life. The gift annuity contract is issued to you in exchange for your charitable contribution. The amount Population Connection will agree to pay you depends upon your age at the time of your gift and does not change for the rest of your lifetime. Population Connection invests and manages your contribution and your payments are backed by the financial resources of Population Connection. Some or all of the payment you receive each year is taxed as ordinary income.

Qualified Charitable Distribution — A QCD — sometimes called a “charitable rollover” — is a contribution from your IRA directly to Population Connection. You can make a QCD if you are at least age 70½ at the time of your gift. Unlike other distributions from your retirement accounts, you pay no income tax on a Qualified Charitable Distribution, although there is no charitable deduction for your contribution. However, your QCD contribution counts toward your Required Minimum Distributions (RMD) from your IRA without creating taxable income for you.

Charitable Rollover Gift Annuity — Under a new law effective in 2023, some donors can make a QCD in exchange for a charitable gift annuity. There are some rules and limitations:

You can exercise this option only once during your lifetime.
There is an aggregate limit of $55,000 for 2026.
The entire payment you receive from your charitable gift annuity will be subject to income tax.
You can include your spouse as a recipient of the annuity payment.
There is no income tax deduction for this contribution, although there is no tax on the QCD either.

Example

Consider Alan, a 75 year old who would like to make a special contribution to support Population Connection. Alan has substantial assets in his IRA, and he knows that he is facing a RMD this year. Even though he doesn’t really need the income, Alan knows that his RMD is going to increase his income tax. Instead, Alan chooses to make a $55,000 QCD to Population Connection in exchange for a charitable gift annuity which will pay him $3,710 (7%) per year for the rest of his lifetime. Alan understands that he is allowed to make this election only one time, but he is looking forward to securing a stream of payments for his lifetime while reducing his RMD and making a generous contribution to Population Connection.

Please contact Victoria Wright at legacy@popconnect.org or call 202-974-7756 for more information. We would be happy to work with you and your advisors to help determine whether this new option is right for you.

Find Best Asset

Our easy-to-use Find Best Asset quiz guides you step-by-step to identify your ideal asset for funding a gift annuity, given your unique situation. Simply answer a few quick questions, and you'll get a personalized recommendation to fund your gift annuity with either cash, appreciated securities, or a qualified charitable distribution (QCD) from your IRA.

Environmental and socioeconomic benefits

Women who have reproductive autonomy generally choose to have smaller families. This slows population growth and creates opportunities for social, economic, and environmental improvements. Slower population growth reduces pressures on natural resources, habitats, and food systems. Within the context of climate change, slowing population growth is key to achieving greenhouse gas emissions targets, and the health, education, and economic benefits afforded through family planning help reduce climate vulnerability and increase resilience for communities around the world.

Low Section Of Women Taking Water From Tubewell In Village Area Of Haryana, India

Health benefits

When women and couples have access to the resources necessary to freely and intentionally choose the number, timing, and spacing of their births, a wide variety of health benefits ensue also, including reductions in maternal mortality and morbidity, infant and child mortality, and unintended pregnancies and unsafe abortions.

People walking down main road in Jinka town, Naciones, Ethiopia, Africa

The powerful, neglected solution

Read more about how empowering women and girls to take charge of their bodies and lives is key to achieving the Sustainable Development Goals in this blog post.

This one action could save the world—so why does no one talk about it?

How Your Gift Helps

Your planned gift to Population Connection helps us educate young people and advocate progressive action to stabilize world population at a level that can be sustained by Earth’s resources. Among many things, your support will help us:

develop K-12 and secondary education materials for teachers and professors so they can easily incorporate population studies into their classes;

advocate for reproductive health and lead grassroots outreach efforts to college students to motivate them to take action on behalf of marginalized communities and our beleaguered planet.

raise awareness of population issues and the need for empowering solutions through our extensive online and offline communications.