If you're looking for the most tax-effective gift to make to the Geneva Foundation, Congress extended a law for 2011 that allows individuals 70½ or older to make take-free gifts now using funds transferred directly from their IRAs to qualified charitable organizations like ours. You can transfer any amount up to $100,000 through the end of 2011.
How This Benefits You
• The transfer generates neither taxable income nor a tax deduction, so you don't have to itemize to take advantage of this opportunity.
• The transfer may count against your unsatisfied required minimum distribution from your IRA.
• You can see firsthand the difference your philanthropic dollars make to those we serve.
Note: The legislation does not permit direct transfers to charitable trusts, donor advised funds, or charitable gift annuities. In addition, this opportunity applies only to IRAs and not other types of retirement plans.
Q&A: Making a Gift Under the Legislation
Q: What if there are two organizations I want to support?
A: You can give each charitable organization $50,000 in 2011, or any other combination that totals $100,000 or less. If your spouse is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
Q: I'm turning 70½ in a few months. Can I make a gift now?
A: No. The legislation requires you to reach 70½ by the date you make the gift.
Q: I've already named the Geneva Foundation as the beneficiary of my IRA. What are the benefits of making a gift now instead of from my estate?
A: Since you already named the Foundation as a beneficiary of your IRA, you are familiar with the fact that whoever inherits your account must pay income taxes on the proceeds. But, by naming a charitable organization as the beneficiary, this tax is eliminated. Making a gift of up to $100,000 from your IRA while you are alive, however, allows you to see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape.
Posts
