Archive for September 19th, 2012

September 19, 2012

Special Report: Where Does the Charitable IRA Rollover Stand?

As we head toward the end of the calendar year, I’ve been increasingly asked about the status of the Charitable IRA Rollover. This is the tax law provision that allowed taxpayers who were 70½ or older to transfer as much as $100,000 a year directly from their IRAs to qualified charities without tax penalties. The mechanism, which expired December 2011, gave older Americans, with an over-funded retirement, an additional pool of funds from which to contribute.

Many nonprofit organizations found the IRA Rollover unlocked new and increased giving. Development professionals also found that talking about the IRA Rollover was an easy way to engage prospects in a discussion about planned giving.

Unfortunately, the U.S. Congress allowed the IRA Rollover provision to lapse. And, it looks like the provision, if it is reinstated, won’t be reinstated until after the November election. Fortunately, there is support for the provision on Capitol Hill. The Senate Finance Committee did vote to include the IRA Rollover, through 2013, in the so-called Tax Extenders legislation.

The Wall Street Journal recently published a brief update regarding the status of the provision: “Will Rule on IRA Donations Return?”

While professional organizations such as the Association of Fundraising Professionals have been at the forefront of the fight for the IRA Rollover, members of Congress need to hear from a diverse group of individuals and organizations.

If you support the IRA Rollover provision, contact your Representative and Senators to let them know they should support it, too.

That’s what Michael Rosen says… What do you say?

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