New Charitable Giving Option for IRA Holders

Newly enacted legislation, the Consolidated Appropriations Act of 2023, expands charitable possibilities for those who wish to utilize their qualified charitable distributions (QCDs) from their individual retirement accounts (IRAs) to create a life-income gift, like a charitable gift annuity (CGA). Previous legislation specifically prohibited QCDs to create CGAs.

CFWNC is pleased to be able to offer individuals, who are at least 70½ years of age, the option to use IRA assets of up to $50,000 to create a CGA in 2023. Per its gift acceptance policies, CFWNC will not be able to offer this option to create any type of charitable remainder trust.

A charitable gift annuity allows individuals or couples to make a philanthropic gift, receive immediate tax advantages, and enjoy annual annuity payments and additional tax benefits for life and/or for the lifetime of designated beneficiaries.

“This could be an attractive option for philanthropic individuals who may be hesitant to give their IRA assets in a volatile market and want the security of fixed lifetime payments,” said Shon Norris, Principal

& Vice President, Gould Killian CPA Group. “It would be particularly suitable for non-itemizers who want a steady income stream, are currently taking the minimum required IRA distribution, and/or are subject to charitable deduction limitations.” Norris is a member of CFWNC’s Professional Advisory Committee.

The new legislation has additional requirements for contributing a QCD for a CGA. If you are interested in utilizing a QCD to create a CGA, we recommend first consulting with your professional advisor to discuss your specific tax implications.

Charitable Gift Annuity

A charitable gift annuity is a lump-sum gift, from which donors or their designated beneficiaries receive annual payments, determined by the amount of the gift, age(s) of the beneficiary(ies) and annuity rates in effect at the time of the gift. CFWNC beneficiaries must be aged 60 or over before annuity payments can begin. Once the beneficiary(ies) are deceased, the remainder of the annuity is added to a CFWNC endowed fund, created or selected by the fundholder. A charitable gift annuity requires only a simple agreement to establish. You do not need an attorney to establish one, but you should consult with your legal and/or financial advisors to ensure that it is a good fit for your situation.

As part of our commitment to being your partner in philanthropy, Development staff is here to help. Contact Becky Davis or Laura Herndon with questions or to learn more about next steps.

Crossnore Communities for Children (Crossnore) was awarded a $20,000 Human Services grant to support the Bridging Families program in Avery County. Bridging Families is a professional foster parenting program that supports families while children are in Crossnore’s care and addresses the growing number of children entering the foster care system.

Crossnore hires full-time employees, trained in trauma-informed care, who care for a sibling set and work with the parents on a reunification plan. While children live in a Crossnore home, the Bridge Parents help birth parents nurture and grow family relationships through targeted therapeutic and skill-building interventions. Families receive professional mental and medical health services, case management, educational assistance, recreational opportunities and support networks. The program reimagines and enhances family visitation, which often takes place in a clinical setting.