I hope to use this blog as a way to share ideas and stories of what is happening with the MLS Foundation and the donors we talk to. The subject matter will usually pertain to real stories and gifting strategies that are used to help move the mission of the Foundation forward.
When it comes to charitable giving every donor is different and every one’s situation is different, but there are many donors who fall into certain category’s of ways to make a gift. Many donors have questions on other strategies of gifting besides just writing a check. Although that is the simplest and most convenient way for donors to provide support.
This past week in conversations with donors the topic of individual retirement accounts (IRA) and required minimum distributions (RMD) came up frequently. A required minimum distribution is a minimum amount that a retirement plan account owner must withdraw annually starting in the year they reach 70 ½ years of age. Many donors in this demographic will consider gifting their RMD or a greater amount if they don’t need it for living expenses. This may allow them to avoid paying federal taxes on the distribution and help a charity they care about.
There is a law (2010 Tax Relief Act) that passed and was extended that allows an IRA account holder over 70 ½ years old a $100,000 lifetime gift exclusion limit from their IRA account to a charity or charities of their choice. IRA account holders have up until the end of 2011 to do this, before the law in reviewed.
This could be a great opportunity for you or someone you know to make a gift this way. It seemed timely to point this out since donors are asking the questions and the end of the year will be here before we know it!
Here is a link that provides additional information about this topic:
IRA rollover gift
As always please seek professional advice from your attorney, tax consultant, and investment advisor before making a gift.
Thanks for your support!