St. Joseph Central Catholic High School is a tax-exempt organization. Therefore, donations made to the school are tax deductible, to the extent allowed by law. Contributions can be made in many forms, including, but not limited to, the following:
- Gifts of cash and appreciated securities
- Charitable gift annuities
- Create an endowment
- Ask your employer if they have a matching gift program
- Make the school the owner and beneficiary of an existing or new life insurance policy or your IRA (partially or whole)
- Set up a charitable remainder trust or charitable lead trust
- Remember the school by using the following language in your will: “I bequeath (description of gift or property) to St. Joseph Central Catholic High School in Huntington, West Virginia.” In all instances it is advisable to seek legal counsel before drawing up a bequest or formulating a will.
New Law Permanently Allows Qualified Charitable Distributions
The Protecting Americans from Tax Hikes (PATH) Act of 2015 passed on December 18, permanently allowing qualified charitable distribution (QCDs) beginning this tax year (2015). A QCD is distributed – tax free – from an IRA account to a charitable organization. A QCD of up to $100,000 is allowed annually and is excluded from a taxpayer’s federal Adjusted Gross Income (AGI). Because the transfer is tax-free, a taxpayer is not able to take the charitable deduction on his or her tax return.
QCD Requirements: To be a valid the entire QCD comes out of the pre-tax portion of an individual’s aggregated IRAs. This is an exception to the usual rule regarding recovery of IRA basis.
- The QCD fulfills the required minimum distribution (RMD) requirement for an IRA owner.
- The QCD may not be distributed from a SEP or SIMPLE IRA.
The following conditions also apply:
- The IRA owner must be age 70.5 or over by the date of the distribution.
- The distribution must go directly from the IRA to the charity.
- The distribution can be made to any type of charity except the following:
- A donor-advised fund;
- A supporting organization; or,
- Certain private foundations.
- The contribution must be one that would normally be 100% deductible as a charitable contribution.
For more information, contact our Advancement Office today at (304) 525-5096.