Emergency Economic Stabilization Act: Good News for Stonecroft Donors
When the Emergency Economic Stabilization Act of 2008 (EESA) became law earlier this month, charitable organizations—including Stonecroft Ministries—benefited.
EESA includes an extension of the Charitable IRA Rollover for 2008 and 2009. This extension is welcome news for anyone age 70 1/2 or older who feels called to use their traditional IRA account to help fund God's work through Stonecroft Ministries.
U.S. tax laws require traditional IRA holders age 70 1/2 or older to take an annual minimum distribution based on their age and the amount of money in their account. This distribution often raises a person's taxable income, whether the money is reinvested or spent.
With the extension of the Charitable IRA Rollover, donors who enjoy enough personal income from other sources and desire to use this required distribution to help Stonecroft can give our ministry up to $100,000 from a traditional IRA—and exclude the gift amount from their federal income taxes. Here's an example:
Irene, a 72-year-old Bible Study Coordinator, holds a traditional IRA worth $500,000. This year, she is required to take a minimum distribution of $19,531.25 from the account. Since Irene has another source of income and doesn't need all of the money from the distribution, it's to her advantage to reduce her 2008 taxable income by gifting a portion of it to Stonecroft Ministries.
This Charitable IRA Rollover opportunity allows you to make a ministry-building and tax-wise gift without writing a check. Charitable IRA Rollover gifts must be made directly from the IRA to the charity. To initiate a transfer, contact your IRA administrator. Allow 4-6 weeks to ensure the transfer is made before December 31, 2008.
If you do not file an itemized federal income tax return, you can still make a Charitable IRA Rollover gift and exclude the gift from your reportable 2008 income.
If you would like more information about this gifting opportunity, please contact Joan Johnson in our Advancement Department at 1.800.525.8627, ext. 117, or stewardship@stonecroft.org.
