Download Funding Ministry Bulletin 12 29 10
IRA CHARITABLE ROLLOVER REINSTATED
On December 15, 2010 the U.S. Senate passed a bill to extend the Bush era tax cuts as well as extend unemployment benefits. This new legislation also extends the IRA Charitable Rollover provision that expired at the end of 2009. The legislation reinstates the Rollover for 2010 and will allow any eligible gifts made by January 31, 2011 to be treated as a 2010 donation. The legislation also sets the new expiration date for the Rollover as December 31, 2011, meaning that eligible gifts made throughout all of 2011 will qualify for favorable tax treatment.
The IRA Charitable Rollover allows individuals age 70½ and older to donate up to $100,000 directly from their Individual Retirement Accounts (IRAs) to public charities without having to count the distributions as taxable income. Since these charitable transfers are not subject to income tax there is no charitable deduction allowed.
Suggested Action: Communicate this information to your church family early in January with the recommendation for them to consult with their own financial and tax professionals for more details.
2% TAX SAVINGS = GIVING INCREASE
Churches are experiencing the loss of a generation that includes a large number of tithers—persons who give ten percent of their income to the church. This generation more than any other gives a fixed percentage of their income to the church. This discipline has been the foundation of church stewardship for decades.
In 2011 the U. S. government is giving its citizens a payroll tax holiday. This action presents a unique opportunity for church members to increase the percentage of their annual giving. Beginning with the first paycheck of 2011, many people will receive 2% more money in their take-home pay. A person can calculate their own tax savings at: http://www.kiplinger.com/tools/2011_Social_Security_payroll_tax_cut_calculator/
Suggested Action: Early in January, communicate to your church family that if they are receiving a tax break in 2011, this is a good opportunity to increase their percentage of income giving to the church. Encourage members to increase their giving by at least half (1% of their income) and hopefully all (2% of their income) of their tax savings in 2011.
To learn more about the services of the Funding Ministry Team with The Columbia Partnership contact Ruben Swint at RSwint@TheColumbiaPartnership.org.
