By Beth Vaughn, Senior Director of Development
Today, I received a phone call that most foundations hope to receive this time of year. A friend of Chi Phi, who wishes to remain anonymous, called to let me know he was sending a $100,000 check to the national office for the Eta Chapter Excellence Fund.
He had decided to make this gift after speaking with Eta Alumnus, Jim Wimberly, Eta 1965. Jim had described how Eta built a new Chapter House at the University of Georgia. Jim spoke with passion about the house serving as a home away from home, a place to make life-long friends, a place to learn…a place where better men are built. Jim also spoke with passion about his own support of the Chapter house and how other alumni were contributing to the Chapter Excellence Fund to make the dream house a reality.
Jim’s friend quickly understood the role the Chi Phi house played in Jim’s own life and how hundreds of young men could benefit from his support. He also knew with only 11 days left in 2013, he had to act to take advantage of the IRA charitable rollover.
The IRA charitable rollover allows people age 70 1/2 and older to give up to $100,000 to charity and count that toward the minimum required distribution an individual would otherwise be required to take. This on again off again rule, was reinstated by Congress in late 2012 and will only last until December 31, 2013.
Donating IRA assets to a charity like the Chi Phi Educational Trust, a registered 501(c)3 organization, has many tax advantages. The sum of the donation is removed from the donor’s adjusted gross income and, unlike some charitable gifts, IRA charitable rollover gifts are not subject to percentage limitations. Plus, making a donation rather than taking the minimum required distribution may allow some donors to avoid penalties that come with higher adjusted gross incomes, such as higher Medicare premiums.
Donors can also make gifts of up to $100,000 from an IRA without using that amount to satisfy their mandatory annual minimum required distributions. So if an individual has already taken his or her 2013 distribution, he or she can still make a gift before it’s too late.
Currently, there are no Congressional discussions to extend the IRA charitable rollover rule. This means donors must get their gift to Chi Phi or their charity of choice in the next 11 days.
In these 11 short days, our friend of Chi Phi will reduce his 2013 tax burden and change the lives of generations of Eta Chapter Brothers. If you are interested in learning more about how you can do the same for your tax burden and Chapter, contact Director of Development, John Fisher at 404.231.1824 or email@example.com.