A great way to support Seva and save money on taxes!
Here is a great way to support Seva — and save money on taxes while you're at it! Thanks to the Pension Protection Act passed by Congress in 2006, people age 70-1/2 or older can make charitable donations by rolling over a portion of their IRA investments. But you have to act soon! This opportunity will expire on December 31, 2009.
For a limited time only, IRA owners age 70-1/2 and older may make gifts directly from their IRA accounts to qualified public charities using an IRA Charitable Rollover. The gifts are authorized between January 1, 2008 and December 31, 2009, and may be as much as $100,000 each year. These gifts also qualify for the IRA owner’s required minimum distribution.
Because Seva Foundation is a 501(c)3 nonprofit organization and qualifies as a public charity, you can use this rule to make charitable IRA rollover gifts to Seva. (By the way, Seva’s federal tax identification number is 38-2231279.)
Benefits for Seva — and you!
You’ll want to check with your tax advisor for all the details, but thousands of donors are already taking advantage of the IRA Charitable Rollover. The primary reason people use the rollover to make donations is the convenience of a direct transfer from an IRA to a favorite charity, without incurring any income tax liability for the transfer. Here are some highlights of the possible advantages of the IRA Charitable Rollover:
- While donors don't get a tax deduction for the gift, the transfer amount is excluded from taxable income, so the effect is the same — it reduces your tax liability.
- The IRA Charitable Rollover may be particularly useful for non-itemizers because it gives you the ability to exclude the IRA distribution from your gross income.
- Some donors find that they have substantial amounts in their IRA, and this is the best way for them to make a charitable gift this year. The Pension Protection Act provides that in 2008 and 2009, a person over the age of 70-1/2 can donate up to $100,000 from an IRA to most types of public charities and then exclude the gift from taxable income.
- Social security recipients have been able to reduce their income levels and save on taxes. For example, with a transfer to a charity as part of their required IRA distribution, instead of 85% of social security being taxable, now only 50% is taxable.
- Some people find that the IRA charitable Rollover allows them to reduce their required IRA distribution. This way, they can avoid the 50% penalty for failure to take minimum requred distributions after age 70.
There may be other benefits as well. Again, it's best to consult your tax advisor for all the details. But remember — you need to hurry! The IRA Charitable Rollover is only available to you through December 31, 2009.
A Legacy of Compassion
We also invite you to create a legacy of compassion for future generation by including Seva in your estate plans. We can work with you to develop a special legacy gift that honors your memory and carries out your charitable intentions while still meeting your personal financial objectives for yourself and your family.
For more information, please contact Peggy O'Neill, Seva's Director of Development, by calling 510-809-3301, or email her at firstname.lastname@example.org.