Gifts of stock, securities, property, life insurance or bequests are a powerful way to make a meaningful contribution to The Salvation Army—many times with special tax benefits.
Special tax-free IRA gifts
For those aged 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.
On December 18 the President signed into law legislation that retroactively extends the charitable IRA rollover for 2015 and makes this provision permanent for future years. A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to one or more qualified charities such as The Salvation Army free from federal income tax each year. There may also be state income tax savings. Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.
To make such gifts, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.
Check with us, your IRA administrator or your tax advisor for more information.
2015 is coming to an end and many of our donors are working out their year- end giving. Maybe you are, too. We'd like to share with you how you may use your IRA to fund your charitable giving to the Salvation Army and other charities that you love and support.
A Gift from Your IRA Account
As you may have heard, the President has signed into law the Tax Increase Prevention Act (H.R. 5771). One provision of the law extended the Charitable IRA Rollover for 2015, allowing a taxpayer to make a charitable gift to a charity directly from their IRA account without adding to the donor’s taxable income.
How It Works
The Charitable IRA Rollover provision has been extended for 2015 and beyond. This means that individuals age 70 ½or older are authorized to make tax-free distributions from their Individual Retirement Accounts (IRAs) of up to $100,000 each year to qualified charitable organizations.
While these Qualified Charitable Distributions (QCDs) are not tax-deductible, but they are also not included in the donor’s taxable income. These distributions can also count as the donor’s Required Minimum Distribution for 2015.
Important Notes on This Year's Extension
• In order to qualify for a 2015 rollover, the QCD payment must be delivered to The Salvation Army or another favored charity by your IRA Administrator on or before December 31, 2015. If interested, please contact your IRA Administrator now.
• If you made a direct distribution from your IRA to a qualified charity earlier in 2015 in anticipation of reauthorization by Congress, that distribution (up to $100,000) will qualify as a QCD, provided all other requirements are met
• Required Minimum Distributions already withdrawn from your IRA in 2015 cannot be re-characterized as QCDs, even if you write a check to a charity in an equal amount
If you are considering making a gift to the Salvation Army using your IRA assets, please let us know by calling Ivy Spohnholz, Director of Development, at (907) 339-3432 or via email to email@example.com.
If you would like to make an outright gift of cash, stock, securities or real or personal property, contact us directly at:
Ivy Spohnholz, CFRE
Director of Development
(907) 339-3432 or 1(800) 276-5919
More planned giving information is available on our Western Territory website.