CATHOLIC FOUNDATION OF WESTERN KENTUCKY

Analysis by the Tax Policy Center and IRS data shows that the number of filers deducting donations on Schedule A dropped by nearly 60% in 2019 from 2017.1 The QCD is relatively more attractive today precisely because fewer people are itemizing deductions and claiming a tax benefit for charitable giving. The QCD creates an alternative and valuable strategy whereby retirees can achieve a tax benefit through their charitable giving.

The QCD allows people age 70.5+ to make qualified charitable contributions directly from an IRA. The contribution can satisfy some or all of a required minimum distribution (RMD). But since first dollars out are deemed to satisfy the RMD, retirees need to consider QCDs early in the year to ensure optimal tax planning. With a QCD, there is no charitable deduction. Rather, the QCD reduces the amount of income reported. It’s an exclusion of income rather than a tax deduction. But therein lies some of the potential benefits of a reduced adjusted gross income (AGI) that are not accomplished otherwise by a charitable deduction on Schedule A: lower taxable Social Security benefits, lower Medicare Part B and Part D premiums, larger deductions for medical expenses, and lower net investment income tax (NIIT). Even for those retirees who claim charitable deductions via Schedule A, the QCD might be an optimal strategy.

There are strict rules inherent in this strategy. QCDs cannot be made from a qualified plan like a 401k or 403b. They must be distributed from an IRA. They cannot be distributed from the IRA to the individual, and then to a charity. QCDs must be paid directly from the IRA to a charity. They are capped at $100,000 per individual. And finally, individuals must proactively notify tax preparers about charitable giving from their IRAs, as the tax document 1099-R does not generally distinguish the QCD from a normal taxable distribution. Planning this strategy alongside your tax advisor is imperative.

For the retired OCHS alumni who are generously supporting the school, now might be a great time to review the QCD strategy with your tax advisor and/or financial planner to see if your current giving might be enhanced by improving the tax outcome. ♠

OCHS Renovation Projects

To make our campus more inviting and high-functioning for our students and for exciting ventures such as our alumni association, we are currently working on a number of capital projects. Thank you for contributing, living the mission, praying for our growth, and daring us to dream!

The Chapel

The need: The chapel is not large enough to house a single class.

The solution: Remove a wall to expand the chapel’s seating capacity to 100+ in an effort to better house an entire class and visiting class reunions for masses. This chapel will have exterior recognition on Parrish Ave. so that passersby can see that Christ is the reason for this school.

New Side Entrance Canopy

The need: The side steps need to be brought up to code and a canopy is needed to provide protection from the outside elements.

The solution: Rework the steps leading to the entrance of OCHS and add an attractive canopy to make this entrance to the school more welcoming to students, staff, and all visitors.

Additional Parking

The need: We don’t have enough parking for our student drivers. Overflow parking is at the Sportscenter, a block away from the school. Students must cross the busy street, Parrish Avenue. Athletic events pose an issue for visitors wanting to park closely to the athletic venues.

The solution: Two homes have been purchased on the adjacent lots to OCHS. These homes have been demolished to allow additional parking in our school lot for students and patrons. The current lot, along with the new acquired properties, will be completely blacktopped and restriped. A new school entrance will be added as well.

Alumni Hall Enrichment Center

The need: We currently serve thousands of alumni, 450 students and faculty, and offer numerous clubs and committees. Currently there is not a meeting room to house events etc.

The solution: To have a functioning, appealing meeting place for all of these events, the Home Economics lab will be transformed to a state-of-the art meeting room with a fully equipped kitchen. The hall will provide a separate after hours entrance into the school, increasing building security.

Alumni Corridor of Champions

The need: The breezeway is one of the main entrances used for entering and exiting the school and gym. It is highly visible yet over the years has become dirty, dark, and dingy.

The solution: This space will get a major clean up with fresh paint and new lighting. The corridor will host trophy cases and serve as a walk of fame for past and future alumni of our school.

Soccer Field Project

The need: The field currently has some hazardous areas, and the sprinkler system is faulty.

The solution: A new, first-class playing surface of Bermuda sod and a new sprinkler system will be installed in Phase 1, and in Phase 2 a new concession stand and honor wall will be created.

Greenhouse

The need: The OCHS Greenhouse is in complete disrepair.

The solution: The current greenhouse was recently taken down and a new fiberglass greenhouse along with some raised beds will be installed. Plants and flowers will be grown from seed and sold to support the future of the greenhouse and the OCHS FFA program.

Science Lab

The need: It has been years since OCHS has had an update to a science lab. Instruments and materials have become outdated.

The solution: Update an existing lab by adding new floors, ceilings, HVAC, lighting, and science casework. This updated lab will provide controlled conditions in which scientific or technological research, experiments, and measurement may be performed.

Auxiliary Gym

The need: It’s no surprise to anyone that an additional gym is something needed for OCS. A new gym would cost roughly $4 million.

The solution: With your help, we can raise enough dollars to make this need a reality.

Levels of Giving

LEGACY $500,000 and above

VISIONARY $250,000-$499,999

PRESIDENTIAL $100,000-$249,900

HONORARY $50,000-$99,999

GOLD $25,000-$49,999

SILVER $10,000-$24,999

BRONZE $5,000-$9,999

EMERALD $1,000-$4,999

WHITE $500-$999

ACE Less than $500

Phonathon 2021

2021 Goal

$210,000

Current Total $147,884

We are having a great year with Phonathon 2021. Thank you for giving to this important appeal. Donations received by October 1 will be listed on the OCHS Proof List published in November.