A SPECIAL OPPORTUNITY FOR THOSE 70½ YEARS OLD AND OLDER
You can give any amount (up to a maximum of $108,000) this year from your IRA directly to a qualified charity such as your congregation, the NWIM Synod, and/or the ministries you specify without having to pay income taxes on the money. Gifts of any value $108,000 or less are eligible for this benefit and you can feel good knowing that you are making a difference at the ELCA. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD for short.
WHY CONSIDER THIS GIFT?
Your gift will be put to use today, allowing you to see the difference your donation is making.
If you are required to take minimum distributions, you can use your gift to satisfy all or part of your obligation.
You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Donor Advised Funds
Most of us know about Minimum Required Distributions from retirement plans by now. (see above). The next term/tool that ministry sites need to be aware of is Donor Advised Funds.
A donor advised fund (DAF), which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to the ELCA, your congregation, your synod, and/or the ministries or organizations you specify. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts.
You can also create a lasting legacy by naming the ELCA, your congregation, your synod, and/or the ministries or organizations you specify as the beneficiary of the entire account or a percentage of the fund. With a percentage, you can create a family legacy of giving by naming your loved ones as your successor to continue recommending grants to charitable organizations. Contact your fund administrator for a beneficiary form.
DAF BASICS
Still learning about DAFs? Discover the ease of opening a donor advised fund — plus the advantages you’ll enjoy — with your FREE guide Centralize Your Giving With Donor Advised Funds.
AN EXAMPLE OF HOW IT WORKS
Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with the ELCA Foundation. The couple receives a federal income tax charitable deduction for the amount of the gift. They also get the time they need to decide which charities to support.
After researching community needs with the foundation’s staff, Joe and Laura recommend grants for their ELCA congregation (which they’ve supported for years) and a local animal shelter. The ELCA Foundation presents the charities with checks from the Patricia Fund, which Joe and Laura named in honor of Laura’s mother. They name their ELCA congregation as the beneficiary to receive the account balance after their lifetimes. Joe and Laura are delighted to start this personal legacy of giving.
Read more on the ELCA Foundation Page: https://foundation.elca.org/donor-advised-funds