It is with bittersweet feelings that I write this article. After 13 years as NER’s Financial Manager, and just about 3 ½ years as the Development Director, I am moving on to a new position outside of NER. I wish to express my gratitude to all our wonderful donors, volunteers, residents, employees, and the Board of Directors for all their generosity over the years. I have come to know so many great people that I will surely miss.
My hope is that the Development program at NER will continue to grow with all the support and participation I have been given. It is an important program with important benefits to those we serve and their families. With that said, I want to share an article from the Wall Street Journal that highlights some year-end giving opportunities.
By TOM HERMAN
Q: I know I can donate money from my individual retirement account directly to charity this year and not pay taxes on the amount withdrawn. Will the same rule apply next year? —M.M., Glen Allen, Va.
A: Nobody knows. The law you’re asking about is scheduled to expire at the end of this year, says Bob Meighan, a certified public accountant and vice president of TurboTax. Although this law enjoys widespread support in Congress, it’s still unclear whether it will be revived for 2012. Congress is tied up in knots these days and can’t seem to agree on much of anything.
As 2011 draws to a close, “don’t overlook” this valuable provision, says Ed Slott, a certified public accountant and IRA consultant in Rockville Centre, N.Y. Under this provision, many people who are 70½ or older can transfer as much as $100,000 a year directly from an IRA to one or more qualified charities without having to report any of that money as taxable income.
While the donation isn’t tax-deductible, it can be a smart move since the transfer isn’t included in your adjusted gross income, says Mr. Slott. Many tax benefits are pegged to a person’s adjusted gross income. Your transfer must be made directly to the charity from the IRA. If done properly, the transfer counts toward the taxpayer’s required minimum distribution for this year.
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If you are thinking of donating to a charity between now and year-end, consider giving away stock that you’ve owned for more than a year and that is worth more than you paid for it. That way, you can avoid capital-gains tax on the increased value—and you usually can deduct the stock’s fair market value at the time you make your gift. This can be especially smart if you have no idea what you originally paid for stock years ago since you don’t need that information to take advantage of this provision. Don’t donate stock that has decreased in value. Instead, sell it to nail down a tax loss and donate the proceeds.
Please consider a year-end donation to NER. The above article highlights just a couple of benefits of doing so. Now would be a great time to set up a planned giving gift as well. Of course, please consult your tax consultant or attorney in such transactions. If you wish to discuss making a year-end contribution, please call our main office at 651-765-0217.
Wishing you all the best and a wonderful holiday season!
Linda Tschetter
