Ira Rollover Gains Momentum - (04/22/08)
Take Action - IRA Rollover Gains Momentum!
Your advocacy can help convince Congress to reinstate the IRA Charitable Rollover. The provision, which allowed donors to make tax-free charitable contributions directly from their Individual Retirement Accounts (IRA), was enacted in August 2006, but expired in December 2007.
Momentum is building in support of the IRA Rollover. On April 17, a package of tax-related measures was introduced in the Senate, including a provision reinstating the IRA Rollover. The Senate also supported the IRA Rollover in its budget resolution, and the President included it in his budget request.
While the IRA Rollover has broad bipartisan support, there is a small window of opportunity for passage this year. Your advocacy is needed to ensure that Congress makes this issue a priority during this short, election-year legislative session.
IRA Rollover Expands Charitable Giving
Reinstating the IRA Charitable Rollover will increase donations to the nation's nonprofit community. The IRA Rollover was enacted as part of the Pension Protection Act of 2006 and permitted donors age 70 ½ and older to make tax-free charitable donations directly from their IRAs, up to an annual ceiling of $100,000.
The IRA Rollover provision expired in December of 2007. Without this provision, individuals who make charitable gifts from their retirement accounts must withdraw funds and treat them as taxable income, reducing the amount available for donation to charity.
During its brief period of enactment, the IRA Rollover spurred millions of dollars in new charitable gifts to nonprofit organizations. Orchestras have reported that the IRA Charitable Rollover resulted in increased and new donations, with the potential for additional new charitable giving if the provision is reinstated.
Find Complete Background and Talking Points
Contact Your Senators!
Take action to help your community benefit from the IRA Charitable Rollover provision. Ask your Senators to support legislation that will reinstate this important charitable giving incentive. By raising your voice, you will be joining thousands of other advocates in the arts and nonprofit communities calling for Congress to support the IRA Charitable Rollover.
- Learn More: Complete background and talking points for orchestras are available in our IRA Rollover Issue Brief
- Convey the following message to your members of Congress:
"On behalf of [your orchestra], I am writing to express our strong support for reinstating the IRA charitable rollover provision and urge its enactment before the end of the year. As you know, the Pension Protection Act in August 2006 enacted several charitable incentives designed to support important charitable works in communities throughout the country. The IRA Charitable Rollover provision provided persons aged 70½ and older with the opportunity to contribute to charity out of their individual retirement accounts without suffering adverse tax consequences. This charitable giving incentive expired December 2007. We urge you to support passage of the IRA Charitable Rollover provision before the end of the year."
Please personalize your message with information about how increased charitable giving could benefit your orchestra and your community.
- Contact your Senators. A faxed, personalized letter will get the most attention.
The League is a member of the Performing Arts Alliance, a coalition of national performing arts service organizations dedicated to advocating for national policies that recognize, enhance, and foster the contributions the performing arts make to America.