Make Charitable Donations Directly from Your IRAs. If you’ve reached age 70½, you can arrange to transfer up to $100,000 of otherwise taxable IRA money to the public charity of your choice (such as your church or other favorite charity). The distribution is federally income tax free. You don’t get to claim it as an itemized deduction on your Form 1040. However, the tax-free treatment equates to a 100% write-off, and you don’t have to itemize your deduction to get it. Additionally, since it is tax-free, it may reduce your Social Security benefits subject to tax. Be careful though — to qualify for this special tax break, the funds must be transferred directly from your IRA to the charity (you can’t receive cash and then donate it). Also, this provision expires at the end of 2009 unless Congress extends it. This could be your last opportunity to take advantage of this ruling.
As you prayerfully consider your calendar year-end giving, remember: You can take advantage of the charitable tax deduction for gifts given before December 31. Checks must be dated and postmarked in 2009. Our church office is open from 9:00 a.m. – 5:00 p.m. on Thursday, December 31 if you would like to bring your gifts in person. Of course any gifts placed in the offering plate through December will be credited to 2009. Gifts of appreciated assets (such as stock) allow you to avoid capital gains tax and you may claim the fair market value as your contribution. If you have any questions regarding your contribution statement or giving opportunities, please contact our business office. Once again thank you for your amazing generosity. May you know the joy of giving in this season of celebrating the greatest gift of all, Jesus Christ.
— Dianne Giroir, Church Business Administrator.