Individual Retirement Accounts (IRA'S)
Americans age 72 or older can make direct transfers up to $100,000 from Individual Retirement Accounts (IRAs) to charitable organizations.
Once you reach 72, you are required to take minimum distributions from your retirement plans each year, according to a federal formula. IRA rollovers to charity count toward your minimum required distribution.
Those who face donation limits based on income will also appreciate the rollover. Usually, you cannot donate more than 50% of your adjusted gross income (and sometimes you are limited to 20-30%). However, when the money goes directly from your IRA to North Heights Lutheran Church as a qualified charitable distribution, it is not counted against that limit, because it is not counted in your gross income.
If you are someone who usually gives up to half of your adjusted gross income, you can now give up to $100,000 more from your IRA. This could enable you to avoid paying a substantial amount of money in federal income tax on IRA distributions. No charitable tax deduction is allowed because these IRA transfers involve assets that have never been taxed.
How to make IRA transfers to North Heights Lutheran Church
To qualify for the IRA charitable transfer, the gift must come directly from your IRA administrator, should be made payable to North Heights Lutheran Church, and mailed to:
North Heights Lutheran Church
1700 West Highway 96
Arden Hills, MN 55112
Ask your IRA administrator to include your name and gift designation in the accompanying documentation. You may designate an unrestricted gift to North Heights Lutheran Church or specify a program or project authorized by the church. If giving to a specific area, include that information with your gift.
Donor Advised Funds
Offers donors simplicity, freedom, and tax benefits in managing charitable donations on behalf of an individual or family. It’s like your very own family foundation as you can determine how, when and where funds are distributed in a lump sum or over time. You receive an upfront tax deduction, no-cost setup, minimal paperwork, and minimal maintenance requirements. The donor Advised Fund is one of the fastest-growing charitable giving tools.
Gifts of long-term stock (stock owned for more than one year) and other securities are a popular way to give to North Heights Lutheran Church. Gifts of securities include publicly traded stocks, gifts of mutual funds, Treasury bills and notes, corporate and municipal bonds, and stock in non-publicly held companies. It’s extremely easy to give stocks and other securities that are marketable—that is, are sold to the public on stock exchanges or over-the-counter markets. No matter how large the donation, there is no need to obtain an appraisal. The value is simply based on what the stock or other security sell for on the exchange on the day of the donation (the average price between the highest and lowest quoted selling prices on the donation day is used).
The gifting of stock to your church can have unique requirements. For assistance please contact Luann Pheneger at 651-797-7825 or email: Luann Pheneger.
For Donor Advised Funds and IRA Distributions you can also contact Orlando Logelin at 651-230-8034 or email: Orlando Logelin.