IRA “charitable roll-over” provision:

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If you own a traditional IRA (Individual Retirement Accounts), once you reach the age of 73 you must begin to receive taxable income through your IRA. This is a process the IRS refers to as a Required Minimum Distribution (RMD).  To reduce this tax burden, some donors use what is known as a Charitable IRA Rollover (or “Qualified Charitable Distribution”) to direct some or all of this required income to an established charity like New Community Project.

 

Even better, the IRS allows us to begin using Charitable IRA Rollovers before we reach the age of 73.  If you have a traditional IRA and are at least 70½ years of age, you can make tax-free distributions directly from your IRA to NCP.  In fact, you can transfer up to $105,000 annually through this process, and once you turn 73, that entire amount will apply to your RMD for the year.

 

Gifts of Appreciated stock:

Appreciated stocks and mutual funds can be donated to New Community Project directly from a brokerage account to NCP’s investment account and then liquidated by NCP. The value of the shares becomes a charitable tax deduction for you. And since NCP sells the shares instead of you, you avoid any capital gains tax liability. Contact Daniel Radcliff at Brethren Benefit Trust (dradcliff@cobbbt.org) for more information and instructions on making these transfers.

 

Other Non-cash gifts: 

Sometimes called “gifts-in-kind,” these are gifts of personal property in a form other than money. They may include gifts of tangible personal property such as vehicles, boats, antiques, artwork, jewelry, etc.

 

Gifts from IRA at death:

By naming New Community Project as a beneficiary of your IRA or other retirement account, you can perpetuate the work of NCP while avoiding the taxation of those retirement assets. Your account retirement plan representative can provide you with a beneficiary designation form to complete and sign, naming NCP as a beneficiary to receive some percentage of your account at your death. Since those funds are sent to a charity, the untaxed retirement assets will escape federal and state income taxes.

 

Gifts by will or revocable trust:

Through a charitable bequest, as specified in your will or living trust, you can provide a generous gift to NCP after your lifetime. You can ensure that the mission of NCP moves forward after your death by including a simple bequest provision (or codicil), in your will or revocable trust. Your bequest gift will not generate federal tax and you can change the designation of your bequest or trust at any time. Applicable bequest language can be as simple as follows: “I/we give, devise and bequeath to the New Community Project, a nonprofit organization [federal tax ID:20-0092504] located at 117 Nature Road, Blue Ridge, VA 24064, the sum of ($X), or (X) percent of the residual assets of my estate.” Your estate gift can be designated for the general operations of NCP or for the NCP endowment fund.

  

Contributions to our Endowment Fund:

This fund is intended to ensure the long-term stability of NCP by providing an on-going, steady source of annual income to NCP while minimizing the impact of inflation and other economic factors. All donations to the endowment fund are placed in an income-producing investment account, the earnings of which are used in a measured way to fund on-going programs in fulfillment of the mission of NCP. All contributions to the fund remain in the endowment in perpetuity; only the income is used. The endowment fund is invested in socially responsible assets that reflect NCP's values and commitment to justice and care for the environment.

 

Giving through life insurance:

Another means of supporting the mission of NCP through your retirement plans is to designate NCP as a beneficiary, or owner, of your life insurance policy. A gift of this nature provides an income tax deduction (if itemizing) and no estate tax is due when the life insurance proceeds are paid to NCP. As noted above, your life insurance gift can be designated for the general operations of NCP or for the NCP endowment fund. 

 

Outright gifts of cash, check, money order, etc.

 

While the Tax Cuts and Jobs Act of 2017 established a much higher standard tax deduction for individuals and married couples filing jointly, the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was adopted by Congress in March 2020 provides an opportunity for donors who do not itemize their deductions to reduce their taxable income (AGI) through gifts to charities such as NCP.  Please note that this charitable gift adjustment pertains only to cash gifts of up to $300 for individuals and up to $600 for married couples. It does not apply to non-cash gifts such as gifts of stock.