At last! IRA Charitable Rollover reinstated 4Good!
December 18, 2015
Orchestras sent nearly 5,000 messages using the League's advocacy center to ask Congress to #Act4Good by reinstating and making permanent expired charitable giving incentives. You joined in common cause with Feeding America, the Y's, American Red Cross, and the full array of nonprofit organizations persistently demonstrating how increased charitable giving can expand access to the arts, education, youth development programs, and other vital services that improve communities nationwide.
Today, the IRA Charitable Rollover provision was successfully made permanent in a tax package that has been signed into law by the President.
The IRA Charitable Rollover has proven to generate new and increased charitable donations for orchestras in the years it has been available. Since its first enactment in 2006, the provision has been renewed and expired five times, leaving donors unable to take full advantage of incentives to give more. That cycle has finally come to an end, thanks to bipartisan passage of the PATH Act, with the House passing the bill by a vote of 318-109, and the Senate passing the bill by a vote of 65-33. In addition to the IRA Charitable Rollover provision, the tax package also includes permanent support for two other charitable giving incentives - an enhanced deduction for property donated for conservation purposes, and an enhanced deduction for donations of excess food inventory.
Here is what orchestras and supporters need to know:
The IRA Rollover expired on December 31, 2014, but is now retroactively reinstated for 2015. If donors aged 70 ½ and older instructed or instruct their IRA administrators to make a distribution of up to $100,000 directly to a charity through December 31, 2015, that distribution will not be treated as taxable income for 2015.
2016 and beyond:
The IRA Charitable Rollover provision is reinstated for 2016 and beyond! This means that donors can reliably include the IRA Charitable Rollover in their plans as they determine their charitable giving options.
It is always wise to advise donors to contact their IRA administrator and/or tax advisors for more detail as you inform them that this important charitable giving incentive is once again available.
Thank you for the many years of speaking up to Congress to convey the value of the work orchestras do to strengthen the artistic vitality, educational opportunities, and civic health of communities. Each year, hundreds of orchestra advocates contacted their elected officials, joining the League as a leading partner with Independent Sector's national nonprofit efforts to achieve permanent reinstatement of the IRA Rollover.