US Law Makes Special Gift Possible

CRWRC Newsroom | December 10, 2009

A retired couple in Holland, Michigan has long had a heart for ministry.  They have volunteered in their local church and community, and supported the work of numerous charities, including CRWRC, with their regular donations.  Lately, they’ve been wondering if they could do more.  Thanks to a special US tax law, they were able to give an extraordinary gift to help CRWRC fight global hunger.

In October, the couple went to a mid-week presentation at their church.  There, they heard from a missionary about the needs of hurting people around the world.  The following Sunday, their church observed World Hunger Sunday and the couple were moved by the information they heard about how people in need are especially vulnerable in this weak economy.  They were motivated to act.

While the couple had regularly given financial gifts to charities, they had never had the financial means to give a really large donation.  However, their Individual Retirement Account (or IRA) had been doing well lately.  In fact, over the past year, the account had recovered much of the value it had lost when the economy began going sour.  They decided to use part of this account for a charitable donation.  On November 16, CRWRC received a very special gift of $10,000 from them for World Hunger.

Thanks to a special law in the United States, individuals over the age of 70 1/2 can rollover up to $100,000 from their IRAs to the charity of their choice without penalty.  Although you may not deduct the contribution from your taxes, you pay no income tax on the amount that was transferred to the charity.  This law is only in effect, however, until December 31, 2009. 

This couple does not want to be known or acknowledged publicly for their action.  They did, however, agree to share their story as an encouragement or challenge to others who might be able to consider giving in a similar manner.

For more information, please contact Bob Laarman at (616) 224-0740 or the Barnabas Foundation at 1-888-448-3040. In Canada, please contact Judy Eising at 800-730-3490 or Christian Stewardship Services to discuss various planned giving options.  You may also visit CRWRC’s planned giving page.

- by Kristen deRoo VanderBerg, CRWRC Communications