- You must be 70 ½ or older when the transfer is made.
- The transfer must go directly from your IRA administrator to your church.
- Rollover gifts are limited to $100,000 per taxpayer per year. If married, and each spouse has an IRA, then each may gift up to $100,000.
- The gift counts toward your IRA required minimum distribution.
- The distribution is not reported as income, so there is no adverse income tax effect.
- Gifts must be outright: not to donor advised funds, charitable remainder trusts, or for charitable gift annuities. Gifts can fulfill your local church pledge.
For individual members of Missouri United Methodist Churches, there is an excellent charitable planning opportunity (for those who qualify) to support the ministries of their church. At the end of 2015, federal legislation was passed making the IRA direct charitable rollover gift option permanent. The law allows charitably minded individuals a golden opportunity to make gifts directly from their IRAs and exclude the amount of their gift from gross income. Now persons over the age of 70 ½ may make a gift to their church directly from their IRA, which counts toward their required minimum distribution, without including the distribution as personal income.
Your Missouri United Methodist Foundation is here to help local churches facilitate these gifts. Here are the key requirements and how it works: