Congress Approves IRA Rollover Extension (10/03/08)
Washington, D.C. - In the last few hours remaining before Congress adjourns, a top policy priority for orchestras and the broader nonprofit community has met with success! Today, Congress approved a two-year extension of the IRA Charitable Rollover provision. Over the past week, orchestras sent nearly 500 messages to Congress urging support for the measure, using the League's new advocacy technology. The IRA Rollover was included in the Emergency Economic Stabilization Act passed by Congress and is now headed to the White House for the President's signature.
Find Complete Background and Details
Prepare Donors as IRA Rollover Returns
Orchestras report that the IRA Charitable Rollover produced new and increased donations when it was in effect last year. Before the original enactment of the IRA Rollover provision in August 2006, individuals who made charitable gifts from their retirement accounts had to withdraw funds and treat them as taxable income, reducing the amount available for donation to charity. The provision spurred millions of dollars in new giving to nonprofit organizations before it expired in December 2007. Inform donors that this important charitable giving incentive will once again be available.
IRA Rollover - Highlights
- Reinstated in the Emergency Economic Stabilization Act of 2008
- Applies to gifts made after December 31, 2007
- Permits donors age 70 ½ and older to make tax-free charitable gifts directly from their IRAs
- Caps qualifying gifts to an annual ceiling of $100,000
- Expires December 31, 2009
- Independent Sector's online tools from 2006 helped nonprofit organizations and donors understand how this charitable giving incentive works. Updated guidance will likely be available soon. In the meantime, become familiar with the IRA Rollover.
Your Advocacy Makes a Difference
Over the past year, orchestras took action to help their communities benefit from the IRA Charitable Rollover provision by asking members of Congress for their support. By raising your voice, you joined thousands of other advocates in the arts and nonprofit communities calling for Congress to support the IRA Charitable Rollover.
In response to League alerts, orchestras delivered personalized letters and emails to policymakers, telling the story of how increased charitable giving supports the public value created by orchestras in communities large and small across the country.
As the League partnered with our national arts and nonprofit counterparts in Washington to advance strategic efforts on the Hill, your communication with elected officials convinced them that support for charitable giving must remain a national priority.
Follow Up with Your Members of Congress