Frequently Asked Questions

• Can I donate stock to Princeton?

  Yes. Gifts of securities either held by your bank or brokerage or held by you offer significant tax advantages for alumni, parents, and friends and are easy to make. Follow these steps to donate stock.

• Can I donate money from my retirement plan?

  Making your gift from retirement funds can offer significant tax and planning advantages by withdrawing funds yourself and taking an offsetting deduction in the same tax year, or by making a qualified charitable distribution. Either method counts toward distribution requirements (RMD) and gets assets out of the estate.

  There is no set limit for withdrawing money from a retirement account, recognizing for income tax, and taking an offsetting deduction beyond the IRS deduction limitation of 60% of adjusted gross income. Gifts made using retirement funds that the donor has recognized for tax can be used to establish a charitable gift annuity or charitable trust. 

  Qualified charitable distributions (IRA charitable rollovers) bypass recognition for income tax of up to $100,000 per year from an IRA, which may be attractive to non-itemizers. See sample letters you can download to instruct your IRA administrator and notify Princeton.

  The SECURE Act (Setting Every Community Up for Retirement Enhancement Act), in effect as of Jan. 1, 2020, changes rules on funding retirement savings.

  Donors should consult with their tax advisors to understand how retirement funds may be used for charitable giving for their situation.

  Qualified Charitable Distribution from an IRA

  Gifts from your Individual Retirement Account can be given to an eligible charitable organization, like Princeton.

  Up to $100,000 of the gift is excluded from your gross income for tax purposes. These gifts also apply to your required minimum distribution.

  How it works:

  1. You make a distribution directly from an IRA to Princeton by December 31.
  2. The distribution counts toward your required minimum distribution.

  Are you eligible?

  • You are at least 70½ years of age
  • The distribution must otherwise be included in gross income
  • The distribution must otherwise be fully deductible as a charitable contribution.

  Benefits

  • Up to $100,000 is removed from your gross income for income tax purposes.*
  • The distribution counts toward your required minimum distribution.

  Could a charitable distribution from an IRA work for you? Please contact us.

  *Certain IRS limitations apply. The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.

  Changes from the SECURE Act

  The SECURE Act (Setting Every Community Up for Retirement Enhancement Act), in effect as of Jan. 1, 2020, changes rules on funding retirement savings.

  Previously, most retirees were required to take a Required Minimum Distribution (RMD) from their retirement accounts at age 70½. The new beginning date for RMDs will be age 72. (However, if you reached age 70½ by the end of 2019, your RMD beginning date is set, and the SECURE Act does not change the requirement date for you.)

  It is important to note that the SECURE Act does not change the age at which you can make a Qualified Charitable Distribution (QCD) from your IRA, which remains at age 70½.

  The SECURE Act also removed certain provisions for beneficiaries of IRAs and defined contribution plans like 401(k)s. Most IRA beneficiaries will now have to distribute their entire inherited retirement account within 10 years of the year of death of the owner. In some cases, it might make sense to leave your IRA to a charity and purchase life insurance for your children or create a charitable remainder trust to maximize legacy benefits.

  Speak to a qualified professional about these new rules and your financial and retirement situation.

• How do I give if I live outside the U.S.?

  If you live outside the United States and are considering a gift to Princeton, you can, in most cases, give online using your credit card. In other cases, we may be able to provide you with details such as fees, basic tax information, and partner organizations that can help process your gift.

  The United Kingdom, 16 other countries in Europe, and Canada have well-developed procedures for giving to US universities. Please visit these pages and see Ways to Give for more information.

  Even if your country is not listed above, you can still give to Princeton. Contact us to find out about opportunities and restrictions regarding giving to the University.

  Governments around the world often introduce new ways to support institutions like Princeton. We can help you navigate the giving landscape.

• Which companies match gifts to Princeton?

  Many companies sponsor matching gift programs that will match contributions made to Princeton by their employees or their employees’ spouses.

  If you are a Princeton alumnus, alumna, or parent, follow the link to find out if your company participates:

  Search for companies that match gifts

  If you do not see your company listed, you may contact your human resources department to learn whether your employer has a Matching Gift Program.

  When searching through your company's database of charitable organizations, please look for: 

  The Trustees of Princeton University, Tax ID number: 21-0634501

  Please send completed forms to:

  Antoinette Pirrera
  Princeton University
  P.O. Box 5357
  Princeton, NJ 08543-5357

  Questions about matching gift programs? Please contact Antoinette Pirrera at 609.258.8609 or e-mail mthgifts@princeton.edu.

• When are donations tax deductible?

  If you have already benefited from the immediate tax deductions offered by donor-advised funds (DAFs), you should know that Princeton University is an IRS-qualified public charity, and therefore eligible to receive contributions from your gift fund. Please follow the instructions provided by your fund regarding minimum contribution, the process for recommending grants, etc.