Amid the frenzy of financial demands—such as ensuring the stability of everyday lifestyle needs and planning for a secure retirement—the simple wish to make a difference for others stands firm. Where do you begin to fulfill your generous intentions? Here are basic pointers to outline your own strategy. I would like to do something to thank God. How can I share what I have with others?
Your Personal Plan
What are your personal financial goals? Are you looking for a significant charitable tax deduction? Would you prefer a gift that not only helps fulfill our mission but would also provide you with fixed payments for life? Or are you simply looking for an opportunity to volunteer your time and energy?
Your Values
Make a list to help determine what you value most in organizations. Start the list by thinking about the experiences and organizations that have mattered most in your life. Consider what you value in these organizations and what they can accomplish.
Your Choices
Choose a few organizations or causes of greatest importance to you. Do a little research to find where you can personally make a difference. You may find your efforts more satisfying if you support charitable organizations that are emotionally near to you.
St Joseph Church can easily meet all of your generous intentions in making a difference for others and at the same time thank God for the numerous gifts he has give us to share.
Taking steps in the right direction is easy when you follow your heart and know that you can make a meaningful difference to the future.
Use Your IRA As Never Before
On Aug. 17, 2006, President Bush signed into law new tax incentives for charitable gifts from donors who are 70½ or older. The Pension Protection Act of 2006 encourages financial support of charitable organizations across the United States. Under the law, you can make a lifetime gift using funds from your individual retirement account (IRA) without undesirable tax effects. Previously you would have had to report any amount taken from your IRA as taxable income, then take a charitable deduction for the gift, but only up to 50 percent of your adjusted gross income. In effect, this caused some donors to pay more in income taxes than if they didn’t make a gift at all. Fortunately, now these IRA gifts can be accomplished simply and without tax complications. Plus, you can make the gift now—while you are living and able to witness the benefits of your generosity.
You may contribute funds this way if:
- You are age 70½ or older
- The gift is $100,000 or less each year
- You make the gift on or before Dec. 31, 2017
- You transfer funds directly from an IRA or Rollover IRA
- You transfer the gift outright to one or more public charities, but not supporting organizations or donor advised funds
- You cannot receive benefits from us in exchange for the gift
How the New Law Works: Pat, age 80, has $450,000 in an IRA and has pledged to give $75,000 this year. If Pat transfers $75,000 from the IRA, she will avoid paying income tax on that amount. She cannot, however, claim a charitable deduction—it is a pure “wash.” Pat has found an easy way to benefit charity without tax complications.
If she desired, Pat could give more than $100,000. The legislation allows a maximum $100,000 gift in both the 2016 and 2017 tax years. So Pat could give $100,000 each year. If her spouse has an IRA and is 70½ or older, he can also give up to $100,000 each year.
How to Make a Gift
Prior to making a gift, please contact Donna D’Agostino at St Joseph Church 717-397-6921, or email donna@stjosephslanc.com for any special instructions, and then contact your IRA custodian to transfer your desired amount.
A Gift in Your Will
We hope you’ll consider including a gift to St Joseph Church in your will or living trust. Called a charitable bequest, this type of gift offers these main benefits:
- Simplicity. Just a few sentences in your will or trust are all that is needed. The official legal bequest language for St Joseph Church is: “I (name) of (city, state, ZIP), give, devise and bequeath to St Joseph Catholic Church in Lancaster Pennsylvania (written amount or percentage of the estate or description of property) for its unrestricted use and purpose.”
- Flexibility. Because you are not actually making a gift until after your lifetime, you can change your mind at any time.
- Versatility. You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of you estate to St Joseph Church.
- Tax Relief. If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift’s full value.
How It Works
To make a charitable bequest, you need a current will or revocable living trust.
Your gift can be made as a percentage of your estate. Or you can make a specific bequest by giving a certain amount of cash, securities or property. After your lifetime, St Joseph Church receives your gift.
Putting Your Family First
When planning a future gift, it’s sometimes difficult to determine what size donation will make sense. Emergencies happen, and you need to make sure your family is financially taken care of first. Including a bequest of a percentage of your estate ensures that your gift will remain proportionate no matter how your estate’s value fluctuates over the years.
We Can Help
Contact Donna D’Agostino at 717-397-6921 or donna@stjosephslanc.com with any questions about naming St. Joseph Church in your will. We’re happy to help, without obligation.
The information on this site is not intended as legal, tax or investment advice.
For such advice, please consult an attorney, tax professional or investment professional.
