Presbyterian Foundation IRA Bulletin Insert - 2007

DONATE DIRECTLY FROM AN IRA TO THE CHURCH IN 2007

No income tax means more for good works
Consider making 2007 charitable donations from your IRA. The Pension Protection act of 2006 allows IRA owners age 70.5 and older to direct gifts from IRA accounts straight to public charities. The qualified gifts count as required minimum distributions from an IRA and are excluded from taxpayer income.

Qualified charitable distributions from an IRA require:
• You must be age 70.5 or older on the date of the gift.
• Your gift must be given directly to the church, Foundation, or a public charity.
• Your gift must be completed before December 31, 2007. Your gift is limited to $100,000 in 2007.
• Your gift must qualify as 100% charitable - current gifts with no goods or services in return, and gifts to permanent endowment funds qualify, but gifts for gift annuities, pooled funds, charitable trusts and donor advised funds do NOT qualify.
• Gifts to satisfy a pledge must be made directly to the receiving charity.

Give up to $100,000 without taxation.
Until August 2006 the only way to give funds from your IRA to your church or the Presbyterian Foundation without incurring income tax was to name the church or Foundation to receive the death benefit of your IRA account balance. Not any longer. And non-itemizers who must report required IRA distributions as taxable income, even though they are later given to the church or charities, will benefit by not receiving the income and paying the taxes in 2007 for Qualified Charitable Distributions.

If you have any questions contact your local Presbyterian Foundation Development Officer or Pat Ohimann, jpo@fdn.pcusa.org // 800.858.6127 option #2.