Congress Approves IRA Rollover Extension
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.
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Last Chance to Speak Up for IRA Rollover!
Washington, D.C. - Congress is on the verge of adjourning, and it is debating whether to pass a package of tax extenders that would include the IRA Rollover. Orchestras have received increased and new donations as a result of the IRA Charitable Rollover. Your advocacy can help convince Congress to reinstate this important measure. 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. While legislation reinstating the IRA Rollover has broad bipartisan support, there is a tiny 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.
Take Action by Emailing Your Orchestra's Elected Officials
APRIL 22, 2008
IRA Rollover Gains Momentum!
Momentum is building in support of the IRA Rollover, which expired in December 2007. 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.
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. There is a small window of opportunity for passage this year and your advocacy is needed to ensure that Congress makes this issue a priority during this short, election-year legislative session.
IRS Revises Form 990
The form used by nonprofits to annually report to the Internal
Revenue Service (IRS) has undergone significant revisions. Beginning in May 2009, organizations with gross annual
receipts over $1 million or total assets over $2.5 million will be
required to file the new Form 990 to report on FY08 activity. The
transition for smaller-budget organizations will be phased in more
gradually. The League filed comments
to the IRS as the Form 990 was re-designed. The final Form 990
reflects some improvements over previous drafts, eliminating
potentially misleading percentage-based summaries and gradually
increasing the threshold for organizations that can file the Form 990N
e-postcard.
As Congress wraps up work for 2007, it has still neglected to
address the extension of the IRA Charitable Rollover Provision. 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, is set to expire December 31, 2007 -- just over one year after
its enactment. Congress may take up a tax bill early in 2008,
providing an opportunity to revive this important giving incentive. Thank you for weighing in on this important issue and please stay tuned for further updates.
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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. 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. The clock is ticking!
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Set to expire on December 31st, the IRA Charitable Rollover provision is 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. A one-year extension of the IRA rollover has broad congressional support and is included in a larger package of popular tax relief extenders that would also include a fix to the controversial Alternative Minimum Tax. As the clock ticks away, the House and Senate are in a showdown over how to pay for the overall tax package.
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Congressional hearings are calling into question the public benefits provided by the diverse range of organizations that make up the nation's charitable sector. The House Ways and Means Oversight subcommittee held a September hearing examining how nonprofits serve the needs of diverse communities. Meanwhile, Senate discussions have probed how higher education and hospitals provide community benefits and devote resources to people in need. Conversations at the national level are being echoed as some states and localities under financial strain reconsider tax benefits for nonprofits. On October 9, the League collaborated with the America Arts Alliance to submit testimony to the House Ways and Means committee, advocating for the unique benefits provided by nonprofit performing arts organizations sustaining vibrant communities across the country.
As the IRS contemplates major changes to the way nonprofit organizations report activity on the Form 990, the League and the broader nonprofit sector have weighed in. While the IRS hopes the new Form will enhance transparency, promote tax compliance, and minimize the burden on filing organizations, certain proposed revisions have raised concerns. In comments to the IRS on behalf of orchestras, the League asks the IRS to:
In addition to these orchestra-specific comments, the League participated in discussions regarding the comprehensive comments filed by Independent Sector
on behalf of the broader nonprofit and philanthropic community. While
the IRS proposes implementing a new form for fiscal year 2008 activity,
nonprofits are strongly urging the Service to delay implementing the
new Form until fiscal year 2009.
Read League Comments