
We are ALL bombarded with letters and calls asking us to consider giving to dozens of worthy organizations this month as 2011 draws to a close. Who do you give to? Do you know all the different ways to give before Dec. 31?
It truly is the season of giving, which includes year-end gifts to charity. As we get ready to flip our calendars to 2012, we should also prepare for some changes that could affect our giving options, including using your IRA to support a public charity, like the Southwest Initiative Foundation or our fund partners—which include community foundations, school foundations and others.
If you are age 70½ or older, this is a GREAT option, as you may direct your traditional IRA (or a portion of the required minimum distribution) to support a charity, up to $100,000, between now and Dec. 31, 2011. An IRA rollover distribution is excluded from your gross income (so you don’t have to pay tax on it), which also means it is not eligible for a tax deduction. It is a great way to support things you care about using assets you may not need today—and that are heavily taxed when passing to heirs.
For more information about whether this is the right choice for your specific situation, we encourage you to contact your financial advisor. And, remember, SWIF has many tools to help you give to support southwest Minnesota. Along with celebrating the many blessings and excitement of this holiday season, we’re available to talk through how you can wrap up 2011 with a gift that will continue to benefit others long after the holidays.
Who will you give to before Dec. 31, 2011?