Support Us
End of the Year giving opportunity
Congress has extended to December 31, 2011, the opportunity for individuals who are 70 ½ years of age and have IRAs a new opportunity to support qualified charitable organizations. If you meet the criteria, you can make a direct transfer from your IRA to us without having to report the transferred amount as taxable income. Under the previous law, making a gift from an IRA to a charitable organization meant reporting the withdrawal as income. Even though the gift could be deducted as a charitable gift, the net effect was often an increase in taxes to the donor.
As you consider this opportunity, it is important to make sure this type of transaction is the most effective way for you to support our organization. The provisions to consider include:
- The gift must be transferred directly from the IRA manager to the charitable organization.
- The donor must be at least 70 ½ years old.
- The contribution must be an outright gift.
- There is a $100,000 limit on the IRA transfer.
- Distributions from 401(k) and 403(b) accounts or other employer-sponsored retirement plans do not qualify.
- The provision in the law expires December 31, 2011.
Example: Donor, age 72, a non-itemizing taxpayer, receives mandatory distributions from his IRA. The Donor wants to make a $100,000 gift but does not need a charitable income tax deduction. Under the new law, the Donor can direct his IRA manager to transfer $100,000 to our organization. He has no tax consequences for making the transfer but removes $100,000 from any future income tax and makes a substantial gift to support our mission. The tax incentives for other charitable gifts, including cash, securities, real property, and planned giving arrangements remain the same.