Martha’s Favorite Charity
Martha is a retired county administrator and a volunteer at First Alliance Church. Her retirement plan with the county had grown substantially, and she had almost $450,000 in her IRA. Since Martha had all of the income she currently needed, she decided to make a gift of $25,000 from her IRA to her church. She called her custodian and requested the transfer. It was easy for Martha to make the gift, and she liked the fact that she could help her church without increasing her taxes. We would advise you to check with your qualified tax advisor to learn about your IRA charitable rollover tax benefits.

Arthur’s Charitable Giving
Arthur is a retired Navy officer and is a regular supporter of various charities. He is an avid volunteer and makes annual cash gifts to charities up to the federal limit, which is 50 percent of his adjusted gross income. However, Arthur wants to make a one-time gift to a particular charity for a special project — without exceeding federal limits or increasing his taxes. So with the availability of the new law, Arthur decided to make a charitable gift of $10,000 from his IRA to charity. He was able to continue to make his regular charitable contributions in addition to the IRA gift. The satisfaction he gained from giving to the special project was immeasurable.

Ralph’s Joy of Giving
Ralph is a retired investment advisor. He had watched his IRA blossom and grow through good investments. It had become the largest asset in his estate. Based on his age and the increased value, his required distribution this year is nearly $100,000! Ralph is a frequent volunteer for his favorite charity and wants to make a major gift to a special project. In September he decided that he did not actually need the distribution for this year. So Ralph contacted his IRA custodian and had the full $100,000 IRA payout sent to his favorite charity. He and his CPA were both delighted — Ralph made a wonderful gift, and his tax situation was simplified.

Helpful Articles on the Web
“The Pension Protection Act of 2006: A Guide to Charitable IRA Rollovers”
“IRA Charitable Rollover Passes!”

For more information on how to make the new IRA rollover law work for you and your favorite Alliance ministry, contact your {regional Orchard Foundation representative}or call Joseph Padilla at The Orchard Foundation’s toll-free number: (888) 689-6300.