Thank you so much for your generosity. It enables us to continue our mission of spreading devotion to our Lady of the Miraculous Medal. It is our hope that this brochure will help you plan your year-end charitable giving. Your gifts are of great benefit to charities, and can also benefit you by saving income taxes.
We know that the demands for your financial support continue to grow as charities are required to extend their help to local families in need, victims of disasters, and those displaced by war and violence. We are all called to give back in proportion to our blessings. By taking advantage of some of the tax benefits, you can help others and help yourself.
Before making your charitable gifts, we suggest that you consult your tax advisor since tax laws can be confusing.
A Christmas Gift
The Association’s Tribute Program: There are always individuals one would like to remember in a special way at Christmastime. Some of these special people do not need or want a material gift, but a tribute gift to the Association would be a thoughtful remembrance. Your tribute gift will help the Association in its work and be a unique remembrance for someone.
Your tribute will be acknowledged by sending an announcement to the person or family honored. If your gift is $25 or more, the name of the person and your name will also be published in the Miraculous Medal Bulletin.
Year-End Gifts
Gifts of Cash: Cash gifts can be deducted up to 50% of your adjusted gross income (AGI). If you do not normally itemize deductions, combining two years donations into one tax year, may be more advantageous to you.
Gifts of Stocks and Bonds: If you own securities that have increased in value, you may want to donate the securities directly to the charity. You will be able to deduct the value on the date of the gift and avoid any capital gains tax that may be due. Donations of appreciated property may be deducted up to 30% of your adjusted gross income (AGI) in the year.
Gifts of Life Insurance: Your favorite charity can be named as the primary or contingent beneficiary of an existing life insurance policy. During your lifetime, you retain ownership and have access to the policy’s cash value.
Matching Gifts: Matching gifts are often overlooked. Check with your employer about their matching gift program, which could in effect double your donation.
Tax Receipts In 2007 all charitable deductions must be substantiated. Contributions of $250 or more require a written receipt from the charity. The receipt must have the amount of the donation, the date of the donation, and the name and address of the charity. In addition the charity is required to acknowledge if you received any benefits in return for your donation. If you give more than $100 in a calendar year, the Association will automatically send you an itemized receipt at the end of the year.
Estate Planning After you have made provisions for your family, consider including your favorite charities. Gifts can be made through your Will, a Living Trust, Life Insurance Policies, or Retirement Plan.
The Association does not offer legal or tax advice. For advice consult your attorney or other professional advisor. This brochure offers general information only.
Charitable IRA Rollover Provision
The Pension Protection Act of 2006 included a charitable IRA Rollover provision. The rollover provision allows you to exclude from your income the distributions made to a qualified charity directly from your individual retirement account (IRA). This distribution will save any income tax that might be due on the distribution.
The owner of the IRA may distribute up to $100,000 per year to a qualified charity without including the distribution in his/her adjusted gross income. This provision is scheduled to expire after 2007. A donor must be at least 70½ years of age on or before the date of the donation, and may not take a separate deduction for the rollover amount. Your annual mandatory distribution may be included in the $100,000 limit for each year. (Distributions from 401(k) and 403(b) accounts or other employer-sponsored retirement plans do not qualify.)
If the rollover provision is allowed to expire this year, you may want to consider making your 2008 donations before the end of 2007 to take advantage of the tax savings.
Thank You