After numerous iterations and several failed attempts, we have finally chosen appropriate light fixtures for the chandeliers and wall sconces in the church. I have certainly learned a very valuable lesson in all of this. The lesson is that I have absolutely no business attempting to pick out light fixtures or any other fixtures for the church. I knew I was lacking in this department, however, after this process it became very evident. After choosing a chandelier that I really liked, Fr. John informed me that my choice would fit well in a 1950s Catholic Church. Luckily, I had several others assisting with the selection process and they ultimately arrived at the fixtures we will install next month. Yes, I said next month. There is a lengthy delay in the production of these fixtures which will delay the lighting project. We will be able to perform some of the other work before the arrival of these fixtures. Thank you for your continued patience and I can only look forward to our very “bright” (no pun intended) future in the church.
“Andrea’s Angel” (as I have referred to this statue) arrived this past Wednesday and was installed in the southeast corner of the Memorial Garden. We will have some type of official unveiling and dedication on Sunday, September 30in recognition of the first anniversary of her passing. Andrea was a fixture here at St. John the Evangelist and was loved by everyone who knew her. This statue will be a magnificent way to remember Andrea’s presence as an angel in our lives. If you would like to make a donation towards the purchase of this beautiful statue, please contact me at 566.1678.
I have had several questions from parishioners recently regarding the “expired” tax law for IRA owners to make qualified contributions to the charity of their choice. Below is the best information I can find.
Parishioners who would like to make a gift to St. John the Evangelist or the Diocese of Venice directly from their individual retirement account this year may have to think twice before donating. The tax code provision that allowed IRA owners to contribute up to $100,000 directly from their IRA to the qualified charity of their choice–without recognizing the donation as income–expired at the end of 2011, and Congress has given no indication if it will be renewed.
Parishioners need to know the rules as they stand now, or they could be in for an unpleasant surprise during next year’s tax season.
The Pre-2012 Donation Rule
As it existed through December 2011, the “donation rule” worked as follows: an owner of an IRA who was over 70½ could directly transfer IRA funds to the charity of his or her choice without counting the donation as income. Because IRA owners who have reached age 70½ are required to withdraw a certain amount, called a minimum distribution, from their IRA assets each year and count this as taxable income, the donation rule was attractive to clients who wished to minimize income.
Minimizing income is a goal for many IRA account owners aged 70½ and older. Increased levels of income can push retirees into higher tax brackets for Social Security tax purposes, and can also make them liable for higher Medicare payments. Until the end of 2011, it was possible to exclude the entire required minimum distribution from income, assuming that the IRA owner’s annual minimum distribution requirement was below $100,000 and he or she donated the entire amount.
The taxable gifts were not deductible under the pre-2012 provision, but the income-reducing benefits made it a smart choice for many IRA owners.
Donating IRA Funds in 2012 and Beyond
Congress has a history of reinstituting expired tax code provisions and applying them retroactively. It is possible, therefore, that Congress could act at some point this year or next to reinstate the donation rule for gifts made in 2012.
If the account owner is confident that he or she wants to make the donation regardless of the tax treatment, the IRA sponsor can transfer the gift directly from the IRA to the qualified charity. If Congress does act to retroactively reinstate the donation rule, the gift will be excluded from income just as under the pre-2012 rule.
If Congress does not act to reinstate the donation rule, any charitable donation made from the parishioner’s IRA would be treated in the same manner as a gift made from any other source. This means that the distribution from the IRA would be recognized as income by the account owner, and the gift would later be included on his or her tax return as an itemized deduction. While the deduction would offset income, the benefit is not nearly as great as it was when the income was not recognized in the first place.
And now you know the rest of the story!
In His work together,
Scott Schlossberg, MBA
General Manager