IRA Charitable Rollover Becomes A Permanent Law
December 21, 2015
In a historic vote, Congress passed the IRA Charitable Rollover into permanent law, making it available to donors for the foreseeable future. This allows tax-free distributions of up to $100,000 per taxpayer per taxable year, to an eligible charitable organization, such as Central Carolina Community Foundation, from an IRA held by individuals age 70 1/2 or older. Because the distribution does directly to a qualified charity, the amount will not be counted as income and will not be subject to income tax.
Using IRA assets to make a gift during your lifetime, as opposed to giving via bequest in your will, enables you to experience the joy of making a major gift.
Sample Scenario: Mr. Smith, age 75, as accumulated approximately $1,000,000 in his IRA accounts. He has other sources of wealth and has plans to leave his estate to his heirs and charity.
Under the law, Mr. Smith can create a fund at the community foundation to address the causes he cares about most by transferring IRA funds tax free. Mr. Smith can transfer up to $100,000 in 2015. In addition, if Mr. Smith is married, his wife can also make similar gifts from her IRA accounts, impacting the community in ways personal, unique and enduring.
Need ideas on where to give?
- Create your named fund at the Community Foundation, by doing so, you are giving to a 501(c)(3) charitable organization. Then, take your time figuring out what nonprofits best fit your interests.
- Consider giving to our Community Impact Fund and support our efforts to make the Midlands a more connected community.
- Give to one of our field of interest funds in the arts or education.
- If you are a nonprofit and are ready to establish an endowment, let us manage it for you. Then, you can concentrate on your mission and use some of the tools in this email to recruit donors to your endowment.
- Give to any of our existing funds at https://www.yourfoundation.org/give-now
How to begin the rollover process:
We recommend that you contact your IRA administrator as soon as possible and ask for your provider’s instructions for executing an IRA charitable rollover. Also, if needed, we can provide you with a sample letter that you can send to your provider to initiate the rollover gift.
To mail a check:
Make it payable to Central Carolina Community Foundation and in the memo choose what fund and mail to:. . . .
For more information, send an email to [email protected] or call 803.978.7831