Tax Law Passed in 2016 Allows Seniors with IRAs to Avoid RMD Tax by Giving to Their Local Church

November 27, 2017

Time is Running Out on 2017 - Share the Following Giving/Tax Saving Tips With Your Church Today! 

Many Americans who are more than 70 1/2 years old have Individual Retirement Accounts (IRAs) that force them to take a required minimum distribution (RMD) each year. However, very few of them know that rather than taking that RMD themselves (and paying taxes on the money withdrawn), they can give that RMD directly to a charity (like your church) and avoid paying any taxes on the withdrawal.  Congress has made this tax provision permanent via the tax bill passed in 2016.
 
Since there are only a few week left in 2017, please share this information expediently and liberally throughout your congregation and small groups, because these final few days of 2017 can prove beneficial to both the people in your church and the church’s bottom line.  These gifts do not qualify as charitable contributions; rather they are transferred tax free (which usually will save the donor more in taxes than a charitable deduction would).  Some of your members might choose to pay their 2018 pledge now with a gift from their IRA, rather than use monthly income.  Others might give to your building fund, mission cause, endowment or other special need.
 
It is not difficult.  All the donor does is tell their IRA administrator that they want to give their RMD to the charity of their choice in a rollover, and voila, the income tax is avoided. The IRA administrator then sends a check to the charity.  If you can email this info out, print a bulletin insert, post it on your Facebook page, and deposit checks, your church can benefit!
 
Be assured, other charities will be publicizing this heavily in coming days, so it behooves you to get out in front of it.  Your members, especially those 70 1/2 and older, need to hear from you that they can give to their church and avoid being taxed.