Congress Passes the IRA Charitable Rollover Into Permanent Law (2015)

By Laurence A. Pagnoni, MPA

Celebrate with us, a victory for you and your donors! In a historic vote, Congress passed the IRA Charitable Rollover into permanent law, making it available to donors and charities for the foreseeable future. Until now, charitable “tax extenders” had to be reinstated each year, now they are a permanent part of our tax code.

The law allows individuals age 70 ½ and older to transfer up to $100,000 from their individual retirement accounts to a qualified charitable organization without being subject to income taxes on the distribution any giving tax year.

This is effective immediately and can be taken advantage of in 2015, but you have to act before year-end, before 12/31/15!

LAPA suggest that you immediately, today, send a version of this email and a postcard to your donors age 70 ½  (we hope you have their birthdates!).

Here are the Specifics:

  • Donors must be 70 ½ or older.
  • Donors can transfer up to $100,000 from their IRAs directly to a qualified charity.
  • Donors pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so donors benefit even if they do not itemize their tax deductions.
  • The gift can satisfy the donors’ required minimum distributions for the year.
  • If donors made a gift of up to $100,000 from their IRAs anytime in 2015, the gift will qualify under the law.
  • Donors who have not yet made such a gift but would like to take advantage of the opportunity in 2015 must contact their IRA administrators right away.

Gifts must be made by Dec. 31, 2015.

Good luck.

Laurence

If you’d like to learn more, watch this video by Tony Martignetti, Esq., of Tony Martignetti Nonprofit Radio.

We welcome your comments about this post on the LAPA blog.

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