Gifts of Stock and Contributions from an IRA

Contributions from an IRA

Good news for taxpayers over the age of 70 1/2.  Congress has voted to make permanent the exclusion from income of up to $100,000 per person, per year, for Individual Retirement Account (IRA) distributions which are given directly to charities such as your local church or the Nebraska Synod. This means you pay no taxes on the amount given.

Another of the key benefits of the direct charitable contribution from your IRA is that the distribution counts towards your Required Minimum Distribution (RMD).

The gift can satisfy a pledge that you have made. However, you may not receive anything (other than an intangible religious benefit) from the charity as a quid pro quo for your contribution. The charity must provide you an acknowledgement stating the amount of the charitable distribution and that no goods, services or benefits of any kind were or will be provided to you in consideration for the distribution from the IRA. 

Stocks can be used as a powerful gift to your church!

Marketable securities are a wonderful vehicle for church members to give their tithes and offerings. This is because many times, the stock or bond has increased in value over a period of years.  The sale of these securities will often create a Capital Gain for the owner when sold, creating a tax liability.  However, if the church member gives these securities to their local congregation, the member will typically receive a tax-deductible donation receipt for the full current value of the stock or bond and at the same time incur no tax liability for Capital Gains.

If you are interested in making a gift to your local church or the Nebraska Synod using marketable securities or your IRA Required Minimum Distribution (RMD), contact your tax preparer or financial accountant as this information is not to be considered legal or tax advice.  You may also contact Ted Asay, Director of Development for the Nebraska Synod at 308-293-4678 or ted@nebraskasynod.org.