Jerry is a fireman who volunteers for a number of charities in his community. Recently, Jewish Federation of Las Vegas shared an opportunity to join in a new program with a positive impact. Jerry was excited to help, but a lead gift of $10,000 was needed to start the program. Recognizing that he would not use all of his IRA during life, Jerry decided to make a $10,000 charitable IRA rollover gift to our organization in 2006.
Jerry: I wanted to increase my gifts to charity. I didn't have a lot of other assets to give away with the exception of my IRA.
Jerry had already made cash charitable gifts to up to the Federal limit (50% of Jerry's adjusted gross income). He wanted to make an additional gift to charity without increasing his taxes.
The gift planner at Jewish Federation of Las Vegas told Jerry that he could make a tax-free rollover gift from his IRA of any amount up to $100,000 without increasing his income or paying additional tax. This IRA charitable gift could be made "over and above" his other charitable gifts.
Jerry: I didn't need the income from my IRA. I had enough income from sales of my investments and part-time work to cover my living expenses. The IRA gift plan seemed like a good idea to me.
Jerry decided to make a gift of $10,000 from his IRA to our organization. He was able to continue to make his normal charitable contributions in addition to the IRA gift without exceeding Federal limits.
Jerry: I am happy that this year I was able to give more and that the gift qualified for my required distribution. The satisfaction I gained from helping Jewish Federation of Las Vegas was significant.
Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your IRA gift benefits under federal rules may be different from this person, please contact Daniel Prepas at Daniel@jewishlasvegas.com.