IRA Rollover Endangered: Take Action! (12/13/2007)
IRA Rollover Endangered - Take Action!
Ask Congress to preserve an important new incentive for charitable giving! The IRA Charitable Rollover provision is set to expire December 31, and has been caught in the middle of a political tug of war as the House and Senate debate a broad tax package. The provision, which allows individuals aged 70 ½ and older to make charitable gifts from their IRAs tax-free up to a total of $100,000 per year, was enacted in August 2006 and has already proved to spur new charitable gifts to orchestras and other nonprofit organizations.
Whether you are an orchestra professional or donor (or both!), please contact your members of Congress and urge them to extend this important charitable giving incentive. Even if you have already weighed in with Congress, please let them hear from you again. The clock is ticking!
Your Orchestra Can Receive IRA Gifts until 12/31
Before enactment of the IRA Rollover provision, 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. Orchestras report that the IRA Charitable Rollover is producing new gifts, with the potential for more if donors can be made aware of this new giving incentive.
IRA Rollover-Current Status
- Enacted as part of the Pension Reform Act of 2006
- 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, 2007
Speak Up to Support Future Giving
Take action to help your orchestra and community benefit from the IRA Charitable Rollover provision. Ask your members of Congress to support legislation that would extend 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 the extension of 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 and the world. The IRA Charitable Rollover provision provides persons aged 70½ and older with the opportunity to contribute to charity out of their individual retirement accounts without suffering adverse tax consequences. Unless Congress takes action soon, this charitable giving incentive will expire at the end of this year, thus depriving thousands of charitable organizations of the resources needed to serve the public good. We urge you to support inclusion of the IRA charitable rollover extension in any tax bill coming before Congress 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 Representative in the House and both Senators. A faxed, personalized letter will get the most attention.
Very Important Final Step: Please send League Government Affairs a copy of your communication with Congress. The League will be following up with Hill offices, and can reinforce your advocacy efforts.
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.