Current Gifts from an IRA: Recently Congress changed the rules on gifts to charity made from an IRA. If you have an IRA and you are older than 70 ˝ you may now make gifts to charity without having it increase your taxable reported income. In 2007 you may give from an IRA up to the maximum of $100,000.

Previously if a gift were made in this manner it resulted in increased taxable income, even if you then gave the money to charity. This often would have resulted in an income tax that would not have been offset by the charitable deduction. Although there is not a charitable deduction under the changed rules, there is no longer a tax on what you give away from an IRA.

IRA as a Bequest: Leaving a bequest to the Boys & Girls Clubs from an IRA is a smart way of maximizing your estate between your goals for your family and supporting charity. No matter how it is planned, there is always a reduction in the value of an IRA when it left to heirs. Dependent on a family’s wealth, the taxes on an IRA when left to heirs range from 30% to an astounding 70%. The taxes if an IRA is designated to benefit the Boys & Girls Clubs are zero! 100% of the IRA value would go to help our mission of serving disadvantaged children.

If you have an IRA and you are making bequests to heirs as well as going to support the Boys & Girls Clubs by making a bequest, the most efficient planning method is to leave the IRA to charity. Stocks, bonds and real property do not have the same tax burden when they are left to heirs.

To make a gift or bequest of an IRA, or to request a brochure please contact:
Jeff Miller
jmiller@sdyouth.org
760-746-3315