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Q&A: Church Contributions from IRAs

How do we substantiate contributions from IRA accounts?

A retired couple in our church makes contributions to the church out of their IRA accounts. These contributions are made directly by their IRA trustee to the church. Is there any reporting or receipt that we need to issue to them to help substantiate their contribution?

A qualified charitable distribution is any distribution from an IRA directly by the IRA trustee to a charitable organization, including a church, that is made on or after the date the IRA owner attains age 70½.

  • A distribution will be treated as a qualified charitable distribution only to the extent that it would be includible in taxable income without regard to this provision.
  • This provision applies only if a charitable contribution deduction for the entire distribution would be allowable under present law, determined without regard to the generally applicable percentage limitations. For example, if the deductible amount is reduced because the donor receives a benefit in exchange for the contribution of some or all of his or her IRA account, or if a deduction is not allowable because the donor did not have sufficient substantiation, the exclusion is not available with respect to any part of the IRA distribution.

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Posted:
  • June 1, 2011

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