NEW DIRECTOR OF PLANNED GIVING JOINS MORAVIAN

Patricia Price has joined Moravian's Institutional Advancement department as Director of Planned Giving. Patti has worked in higher education and for human service organizations since 1975, most recently devoting eleven years to the international relief and assistance organization CARE. She earned her Bachelor of Arts degree from the University of Miami and a Master of Education degree in Higher Education from Lehigh University.

Patti views her role in Planned Giving as helping people make their charitable dreams come true, and she believes the key to philanthropy is "desire," not "dollars." She offers some good financial news on the giving front.

Tax-Free Gifts Reauthorized by Congress

Congress recently reauthorized the provision that allows you to make a tax-free gift from your IRA to Moravian College. That means you have a new source of tax-advantaged funds to use to make a gift.

To qualify:

  • You must be 70½ or older at the time of the gift
  • Transfers must be made directly from a traditional or Roth IRA account by your plan provider to the charity. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401K, 403B, SEP and other plans do not qualify.
  • Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are not allowed.

Qualified charitable distributions:

  • Can total up to $100,000
  • Can be excluded from your gross income for federal income tax purposes on line 15a of Form 1040 (no charitable deduction is available, however)
  • Can be used to satisfy your Minimum Required Distribution
  • Are not subject to the 50% deductibility ceiling or the 2% rule.

Example: Suppose you have $500,000 in an IRA and will be required to withdraw approximately $25,000 this year, and suppose that you also want to contribute $20,000 to Moravian College. You can authorize the administrator of your IRA to transfer $20,000 to Moravian College and $5,000 to yourself. The $20,000 distributed to Moravian will not be subject to tax and will be counted toward your annual minimum distribution.