With only eight months left to participate in the IRA charitable rollover provision (unless Congress extends it), now is the time to be talking to your donors and prospects who are age 70-1/2 and older.
Neal Brodsky, an attorney with LeClairRyan, and Nan Edgerton, vice president of development for the Hampton Roads Community Foundation, recently shared their expertise with a presentation entitled The IRA Charitable Rollover: Top Tips You Need to Know. Their information is both timely and important.
IRA charitable rollover is one of the simplest ways for your donors and prospects who are at least 70-1/2 years of age to give. Your prospects are donors that have done this in the past, board members, donors with multi-year pledges, professional advisors, and active prospects. Donors see many benefits when giving through this rollover opportunity, including: the ability to help their favorite charities; the amount transferred from IRA counts towards the owners required minimum distribution for that year, up to $100,000; and the amount transferred is not included in the owner’s taxable income for the year. $5,000 is the most common amount contributed.
There are a few key requirements to consider. The donor must be at least 70-1/2 on the day of the rollover. The rollover must be from a traditional IRA account or Roth IRA, and it must be transferred directly to a qualified charity. Only public charities and private operating foundations are eligible. Lastly, a married couple may contribute up to $200,000 per year, if each has a separate IRA.
To learn more, one good resource is Partnership for Philanthropic Planning (www.PPPnet.org). The IRA charitable rollover provision is set to expire on December 31, 2011. Please consult a tax professional for additional information and guidance.