Extension of IRA Charitable Rollover Included in Financial Rescue Bill!

Take advantage of this renewed giving opportunity!

Duane J. Koble

On October 3, 2008, the Emergency Economic Stabilization Act of 2008 was passed by Congress and signed into law by President Bush. One of the last minute additions to the Senate version of the bill was an extension of the charitable IRA rollover provisions to distributions that expired at the end of 2007. The new legislation extends IRA rollover gift provisions of the Pension Protection Act of 2006 to make it applicable to gifts made in 2008 and 2009 retroactive to January 1, 2008.

What this means for you..

The newly extended IRA rollover provision permits you to use your IRA to help accomplish your philanthropic goals with no federal tax impact. If you are 70 ½ or older, you may make a gift or up to $100,000 per year to Nativity Church of Fargo from your IRA with no federal income tax, impact and your gift will be counted toward your required minimum distribution. To obtain this benefit, you must instruct your IRA administrator to transfer funds directly to Nativity Church of Fargo in one of our many endowments.  If you withdraw the funds from the IRA first and then contribute them to Nativity Church of Fargo you will lose the tax benefit.

This charitable IRA rollover is only available this year and next. We urge you to act soon to take advantage of the 2008 opportunity in perpetuity.

Additional details: Unlike a cash withdrawal from your IRA, your direct contribution will be excluded from income for federal purposes and not taxed. It will not be eligible for a charitable tax deduction, but it will not count toward the annual percentage limitation on your other deductible gifts, nor will it reduce your other itemized deductions. Your direct contribution cannot be made to donor advised funds, supporting organizations, split-interest trusts or in exchange for gift annuities. Your qualified distribution may be includable in your income for state and local tax purposes, and an offsetting charitable deduction may not be available.

Remember your parish community has many excellent Endowments for your planning.

The parish community of Nativity has in place six endowment funds for our parish development planned giving opportunities:

• JIM LAVELLE MEMORIAL FUND ENDOWMENT: Started in 1995, this fund is used by Nativity parish for the purchase of flowers or flower materials for the flowerbeds around the church campus.
• MAURICE MUELLER ENDOWMENT: Begun in 2000, this fund is used for the education of persons involved in Liturgy and Social Justice.
• NATIVITY PARISH SOCIAL JUSTICE MINISTRY FUND ENDOWMENT: This endowment was started in 2004 to endow a staff position employed by Nativity to promote social justice.
• NATIVITY PARISH FAITH FORMATION SCHOLARSHIP ENDOWMENT: The fund started in 2006 provides financial scholarships for children of low-income Nativity members in the Nativity Elementary Faith Formation program, the Nativity Youth Faith Formation program or the Nativity Parish Sacramental program.
• NATIVITY CHURCH OF FARGO ENDOWMENT: Started in 2008, this fund helps support the Church of the Nativity.
• LAURA CHRISTENSON ESPEJO ENDOWMENT: The fund started in 2000 for Social Justice Ministry for the parish, which includes education about social justice, social justice activity in the community relating to person whoa re homeless, or materially poor and social justice activities related to the parish’s connections in Peru.

If you would like to donate to our endowments, we give the opportunity to do so online by visiting our parish web site www.nativitycatholicchurch.net and then going to the link Stewardship/Financial Planning and click to donate on line. If you choose to give not on line, please submit the gift to the parish office and indicate the endowment on the memo line of your check. The Laura Christenson Espejo Endowment Fund is located at the Fargo-Moorhead Area Foundation. Any questions, please call my office at 232.2414 extension 134 or e-mail at duanek@nativitycatholicchurch.net

Tags: Charitable Ira Rollover, Charitable Tax Deduction, Deductible Gifts, Donor Advised Funds, Economic Stabilization Act, Federal Income Tax, Itemized Deductions, New Legislation, Pension Protection Act, Pension Protection Act Of 2006, Philanthropic Goals, Required Minimum Distribution, Senate Version, Tax Benefit, Tax Impact

This entry was posted on May 7, 2009 at 1:17 pm and is filed under Charitable Giving, Stewardship. You can follow any responses to this entry through the RSS 2.0 feed.