Category: Charity
End of Year Generosity
December 1, 2017By Ron Bare
We are approaching the end of another year – if you’re like me you often wonder how the year went by so quickly and you begin to understand that our time on earth is short – even if we live to age 100!
Since time is short, we must look to make the most of the resources God has entrusted to us. As you reflect on another year and make plans for the next, consider the following thoughts on generosity that will help us leave a legacy well beyond our time on earth.
Excel – In 2 Corinthians 8:7 Paul talks about excelling in your grace of giving. Just as we work hard to excel in school or our careers, we should also work hard to excel in our grace of giving. The best way to do this is to push ourselves to a higher standard than the year before.
Decide – In 2 Corinthians 9:7 Paul also tells us to decide in our hearts how much to give and to do it cheerfully. We should decide in our heart by setting goals and committing to giving back to the Lord the best or first of all our resources. We should do this not because we have to but as an overflow of our love for Christ who died for us.
Be ready – I Timothy 6:18 Paul again tells us to be ready to share with others and by doing so we will be storing up treasures for the future. I’m not exactly sure what these treasures include, but I believe Jesus when he said “It is more blessed to give then receive”. You never know when God will prompt you, so be ready to share – and be blessed!
We often set goals near the end of a year for the upcoming year. This year why not DECIDE to set some giving goals for 2018 that will help you EXCEL in generosity, so more people will be blessed! In this way you will be READY to share with those in need and store up treasures for your future.
Qualified Charitable Distributions
February 4, 2016Qualified Charitable Distributions
In the past, we have helped several of our clients make distributions from their Traditional IRA accounts to charities. The past several years, Congress waited and would then temporarily (and sometimes retroactively) pass laws that allowed these Qualified Charitable Distributions, which satisfies an account owner’s Required Minimum Distribution (RMD) in a given tax year without being taxed on the distribution.
On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015, which reinstated the IRA Qualified Charitable Distribution permanently. This gives you the opportunity to make a gift of up to $100,000 from your IRA to a public charity(s) without incurring a tax bill on the distribution. For clarity sake, this distribution and gift cannot be then claimed as a deduction for tax purposes.
Who qualifies?
Owners of Traditional IRAs (not SEP or Simple IRAs) who have attained the age of 70 ½ (on the date of distribution) may distribute directly from their IRA to a charity up to $100,000 per year and exclude the contributed amount from their gross income for tax purposes. This amount can be counted towards the IRA’s annual required minimum distribution.
Who can receive IRA distributions?
The IRS has stated that any organization who is eligible to receive tax-deductible contributions can receive these Qualified Charitable Distributions, but there are some exceptions including a donor-advised fund, a supporting organization, a private foundation, and any distribution in connection with a charitable gift annuity.
If you are interested in doing a Qualified Charitable Distribution or know of someone who is, please contact our office to schedule a meeting to discuss the concept in more detail with your specific account and objectives.