IRA Charitable Rollover
Donating part or all unused retirement assets is an excellent way to make a gift to support parish offertory, an endowment, a Parish/Ministry Life Fund, or a Catholic school scholarship program… all at the same time! By “rolling” the distribution from an individual retirement account (IRA), directly to a charity, donors can make a gift to further the work and mission of our Church while possibly receiving a tax benefit.
Please note: It is vital for donors considering this option to speak with their tax advisers and financial advisers.
While there has been a lot of talk about the SECURE Act, voted into effect in December 20, 2019, it is important to know anyone can still make a qualified charitable distribution from their retirement account, no matter their age.
- Individuals 70 ½ years of age and older as of January 1, 2020, are still able to make qualified charitable distributions that can count toward the required minimum distribution (RMD). This will keep the RMD from being included in adjusted gross income for tax purposes, which can be a benefit for some even if they do not itemize deductions.
- For all others, the age to make a qualified charitable distribution that counts toward the required minimum distribution was increased to age 72.
- For those planning on leaving their IRA to their children in their estate, the SECURE Act put a cap on the amount of time they have to access and use the funds at 10 years. Therefore, depending on their ages, donors may want to consider leaving heirs assets that receive a step up in basis, such as insurance plans, real estate and stock, and utilize the retirement assets for charitable giving.
All stock, IRA, and matching gift donations are processed through the Campaign Processing Office of the Diocese of St. Petersburg, and will be credited directly to the Foundation fund indicated by the donor in accordance with the donors’ wishes. To initiate a donation from an IRA, the steps are:
- Contact the IRA plan administrator.
- Provide the IRA plan administrator with the following information:
- the Tax ID number of the Catholic Foundation (59-3519543) and mailing address the gift should be sent to (The Catholic Foundation-Diocese of St. Petersburg, Campaign Processing, PO Box 40200, St. Petersburg, FL 33743-0200)
- the total amount to contribute
- gift allocation. One distribution can be used to support multiple diocesan entities and ministries. For example, a total qualified charitable distribution of $10,000 can be split as follows: $1,000 for the offertory of “Parish Name”; $5,000 for the Catholic Foundation Parish Life Fund for “Parish Name”; $2,500 for the Catholic Foundation Ministry Life Fund for Seminarian Education and Formation; $1,500 for the endowment for Hillsborough Hope operated by Catholic Charities, DOSP.
- Verify the IRA plan administrator will include donor name on the check/stub being sent.
- Notify the Campaign Processing Office a gift was initiated a gift from an IRA, the amount of the gift, the name of the company the IRA is held with and include how gift allocation. Notification can be sent by email to firstname.lastname@example.org, or by mail to Diocese of St. Petersburg, Campaign Processing, PO Box 40200, St. Petersburg, FL 33743-0200.
- IRA funds will be directly transferred to the Catholic Foundation to support the work of the designated parishes and ministries. Once the payment is received, an acknowledgement letter will be sent with a copy going to the entities receiving funds.
Please contact us if you have any questions about an IRA charitable rollover gift. We would be happy to assist you and answer any questions you might have.