Charitable Giving Opportunities
Charitable Giving Opportunities As part of the Pension Protection Act of
2006, a provision was implemented for taxpayers ages 70 ½ and older,
allowing distributions from IRA accounts to be made directly to charitable
organizations such as Grace Lutheran Church and the Grace Lutheran
Foundation. This provision originally expired on December 31, 2007 but now
has been continued for an additional two years until December 31, 2009.
Under this provision a donor can instruct the trustee of their IRA to make a
direct gift to a qualifying charitable organization with no adverse tax consequences. For the 2009 tax years an individual can make charitable contributions of up to $100,000 directly from their IRA to a charity without that amount being included in taxable income. Contributions made under these provisions are not subject to tax on the distribution and are not eligible for a charitable contribution deduction, but they are not subject to a limitation based on adjusted gross income, as other contributions may
be.
This provision provides some tremendous planning opportunities for taxpayers
and can result in additional benefits for charitable organizations such as
the Church (current fund pledge or capital campaign) and the Grace
Foundation. If you have questions or would like more information contact
your tax advisor, the Church or the Grace Foundation.