Is a Qualifying Charitable Distribution (QCD) Right for You?

,

By Skip Helms, Asheville Habitat Legacy Builders Society Member, former Asheville Habitat Board Member, and President of Helms Wealth Management, LLC

As the end of the year approaches, we want to proactively thank you for considering Asheville Area Habitat for Humanity in your giving budget. We appreciate your generosity and will always use your gifts wisely.

Donors over the age of 70 ½ now have some new opportunities. For many years, the tax code has allowed people over that tender age to transfer up to $100,000 a year from their Individual Retirement Accounts (IRAs) to qualifying charities like Habitat. The gift is a direct pass-through. The charity gets all of the money and there are no taxes due.

People over 70 have to take Required Minimum Distributions (RMDs) from their account every year. If you transfer some or all of that mandatory withdrawal to a qualifying charity, it isn’t considered taxable income.

The provision is called the Qualifying Charitable Distribution (QCD) and donors have been using it for some time now. Recent tax law changes just made it much more important.

The standard deduction has doubled from $6,000 to $12,000 per person or $24,000 for couples. That’s good news. Only about 5% of Americans will still itemize their deductions this year.

Donors over age 70 can increase their tax savings by carefully choosing which account to use for gifts. They still have to take required IRA distributions. If they will be better off using the standard deduction and not itemizing their charitable gifts, giving through their IRA keeps that portion of those withdrawals from becoming taxable income. It’s almost like deducting it twice by checking a different box on the distribution form. Here’s a short example:

You only ever own most of an IRA.  The government owns the rest. You have to pay them their share when you spend it, or your family has to pay them later.  But if you give your portion to charity, you can give them the government’s money too.

That makes IRAs attractive for current giving. It makes them great for legacy planning since your family will get an updated cost basis on your other assets.

Asheville Area Habitat for Humanity can do wonderful things with your generous gift but we are not financial or tax planners. We encourage you to speak with qualified advisors who know your situation. Please call Kit Rains at 828.210.9365 to let us know how we can help.

Thank you again for thinking of Asheville Area Habitat for Humanity and we hope you will forward this link to friends who have questions about supporting Habitat or other great organizations.

 

/by

The Unpaid Bills… But Not the Kind You’re Thinking

, ,

By Sydney Monshaw

Asheville Area Habitat for Humanity has many unpaid Bills – but not the kind you’re thinking. These Bills have chosen to be left unpaid, donating their time and energy, often a few times a week, to help build and repair homes for families, primarily in Buncombe county. Though one Bill volunteers in Henderson County, too! There are seven Bills in total, but as Bill Durant a Friday Core volunteer mused, “Comparable to the stack on my desk – both are increasing.” While this group started as something silly to refer to the growing number of core volunteers named Bill who receives their pay in the form of gratitude and sore muscles, The Unpaid Bills has become an identity for these men who make up a community within the larger group of weekly Core Habitat construction volunteers.

Bill Reid, Bill Ryan, Bill Winkler, part of the Thursday core volunteers

Bill Lineberry

This group of dedicated Bills ranges in years of experience, some having as many as 15 years as a volunteer. The rookie Bill, also the medical Bill (a retired doctor), will be celebrating his one year anniversary as a core volunteer this December. Most, however, fall somewhere in the middle, with about 7 years of service on average. At least one Bill is out on the new home construction job site almost every day of the week! On Mondays Bill Winkler represents the “Unpaid Bills,” Tuesday Bill Bechtold and Bill McDowall hold down the fort, Thursday Bill Winkler joins Bill Reid and Bill Ryan for his second shift of the week, and on Friday Bill Durant, Bill Kantonen, and Bill Lineberry are working hard to close out the week. All of these Bills are committed to building a better future, one day at a time.

When asked what they enjoy most about volunteering, here is what a few Bills had to say:

“I enjoy all aspects of volunteering -The work fits my desired activities and skill set; the other volunteers and staff are exactly the type of people I enjoy being around – the BEST! The satisfaction of contributing to the Asheville community is highly rewarding.” – Bill Winkler (Tuesday, Thursday)

“I enjoy most the camaraderie with my fellow volunteers and in helping people who are willing to try to improve their situation in life.” – Bill Durant (Friday)

Bill Durant

“Helping folks, camaraderie of the build teams, and learning how to build/repair things the right way. (Also the nutritious break time snacks.)” – Bill Reid (Thursday)

“Helping deserving people have a home of their own while working with great bunch of people. It has also been a great hands-on learning experience. Although I had done some construction work and have a General Contractors License, I was surprised at how little I really knew.”– Bill McDowall (Tuesday)

Bill McDowall

“There are multiple factors that I like about volunteering, foremost among these are:

  1. The efficiency of the Asheville Area Habitat for Humanity Organization
  2. The professionalism of Asheville Area Habitat for Humanity staff
  3. The camaraderie among Asheville Area Habitat for Humanity volunteers
  4. The opportunity to contribute to the local community in a meaningful way.” – Bill Bechtold (Tuesday)

Bill Bechtold

 

“What I like best is the combination of fun work that benefits the community and the opportunity to work with great future homeowners (super folks), great staff, and great volunteers. Making a difference.” – Bill Ryan (Thursday)

Bill Kantonen

You would never know that the Bills go unpaid at Habitat. They work with integrity and commitment, living out the mission of Habitat – bringing people together to build homes, communities, and hope. For them, it is about so much more than the lumber, nails, paint, and shingles that create a house – it is about the community, camaraderie, and sense of belonging that truly builds a home. Bill Bechtold captured perfectly the feeling of being one of the “Unpaid Bills.” He said, “Being an Unpaid Bill reminds me to feel grateful that I am healthy enough and fortunate enough to do something meaningful in the community for people who deserve a hand up.”

Asheville Area Habitat for Humanity is fortunate to have so many unpaid Bills who keep coming back week after week. They, like all of the core volunteers, take home their pay stubs in the form of muddy boots and strong friendships, and they wouldn’t have it any other way.

/by