Charitable Giving from your IRA

The Charitble IRA Legislation is back for 2008 and 2009!  Don't miss this opportunity to make tax-free gifts from your IRA!

There is good news for individuals age 70½ or older.  The Pension Protection Act of 2006 has been extended through 2009 allowing you to make charitable gifts directly from your IRA without tax complications.  If you are required to receive minimum distributions from your IRA and you do not need the money for personal use, consider using those funds as a charitable gift to the Church.  While you cannot claim a charitable deduction for the IRA gifts, you will not pay income tax on the amount.  This benefit ends December 31, 2009.

You may contribute funds this way if:

  • You are 70½ or older
  • Your IRA gifts total $100,000 or less each year in 2008 and 2009
  • You transfer the funds directly from an IRA
  • You transfer the gifts outright to the Church or other qualifying charity

The Benefits

  • In most cases the gift counts toward your required minimum distributions.
  • The gift generates neither taxable income nor a tax deduction, so even those who do not itemize on their tax return receive the benefit.
  • You may transfer up to $100,000 directly from your IRA in 2008 and 2009.
  • The distributions may fulfill your operating budget pledge, building pledge or other giving you already had planned.

If you are interested

If you are interested in this giving option, please contact your tax professional and/or your IRA administrator.  In addition, you will need to let the Business Office at the Church know you are making this gift.  Since the check from your broker will be made payable to First United Methodist Church Richardson and mailed directly to our location, occasionally your broker will fail to put your name on the check.  This makes it difficult for the Church to track down who the gift is from in order to give you contribution credit.  When you notify your broker to initiate the transaction, please also notify Dianne Weideman, Director of Finance or 972.996.0106 that the gift is coming and to let us know where you would like the gift designated.