Comments on: Last Chance for Charitable Contributions from Your IRA

By: Review of 2010 Stats | Getting Your Financial Ducks In A Row

Review of 2010 Stats | Getting Your Financial Ducks In A Row — Sat, 01 Jan 2011 05:02:33 +0000

[...] Last Chance for Charitable Contributions from Your IRA [...]

By: jblankenship

jblankenship — Wed, 01 Sep 2010 15:28:30 +0000

The qualification is up to the IRS’ definitions, and the foundation will know if they are or are not qualified, or rather were or were not qualified when you made the contribution.

Best wishes for you – hope things work out well.

By: Del Dester

Del Dester — Wed, 01 Sep 2010 14:43:45 +0000

Thanks for the reply. I have a call in to the directors to get more clarification. I suspect that because the afore mentioned foundation will “hold” the money in interest bearing or investment account until I “suggest” a qualifying charitable organization I want to distribute the money too (technically, I have relinquished all rights to the contribution when made). Are you familiar with this type of foundation and what is your opinion on whether this would have anything to do with qualification. Thanks. ddd

By: jblankenship

jblankenship — Mon, 30 Aug 2010 18:39:12 +0000

Del -

I’m guessing that the foundation you’re asking about is a private foundation, rather than a public charity. This would be the only reason I can come up with for a challenge to your contribution – and it’s not very clear from the documentation just how a person is supposed to know the difference, other than to ask the organization before making the contribution.

The difference is in how the foundation is classified (what the function of the organization is) and how it is supported. If the foundation is a church, school, or hospital, or an educational organization, then it is likely a public charity. In addition, if the support for the organization is made up of public support (one-third or more), or if the foundation can prove to the IRS that it operates as a charitable organization (the definition is quite complex).

Chances are that the foundation directors or management will be able to tell you if they qualify (or qualified in 2009) as a public charity. If they do not, all is not lost (in your situation with the IRS), but you’ll need to unwind the contribution transaction (from the tax return standpoint) and determine tax owed under normal circumstances. Realize that there may be substantial limits to the amount that you can contribute to a private foundation.

Hope things work out for you – let me know if there is anything I can do to help you with your situation.

By: Del Dester

Del Dester — Mon, 30 Aug 2010 16:12:15 +0000

Forgot to mark “notify me via email” box
ddd

By: Del Dester

Del Dester — Mon, 30 Aug 2010 16:10:45 +0000

Ran across your web site as I searched for charitable contributions from an IRA. I’m over 70.5. In 2008, I made a charitable contribution from my IRA. I’m being challenged by the IRS. Apparently the Foundation (Mennonite Foundation Charitable Gift Fund, Goshen, IN) I contributed too is tax exempt from personal accounts but not from an IRA!!! Are there such distinctions? How does one sort out these fine distinctions? What do you know about this?

By: Charitable Contributions From Your IRA – 2010 and Beyond – Getting Your Financial Ducks In A Row

Wed, 21 Apr 2010 12:39:11 +0000

[...] WordPress PluginWe discussed the IRA Charitable Contribution option some time ago in the post “Last Chance for Charitable Contributions from Your IRA”, and it’s possible from that article that you got the impression that you are no longer able [...]