Published on Alliance1 (http://www.alliance1.org)
IRA Charitable Rollover Rises Again
Once again, we have an opportunity to help our donors who are at least 70-1/2 years old make a tax-free gift to our agencies by withdrawing from their individual retirement accounts (IRA).
Remember the IRA charitable rollovers of the past? The option is back again, with some modifications for 2011.
Individuals who are 70-1/2 years old or older may make gifts of up to $100,000 directly from their IRA to a qualified charity. The donor does not have to report it as income. The donor does not receive the funds directly; they are disbursed by the IRA manager to the charity. There is no charitable deduction for the gift, but the gift does count toward the required minimum distribution.
Making IRA rollover gifts to your agency is a lot more fun for many donors than waiting for distributions at their deaths. Consult your professional advisors for details. This is an excellent opportunity for those with excess funds in their IRAs to make a charitable gift during their lifetime.
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About the Author
Len Iaquinta is president of Excellence in Communications in Kenosha, Wis. He is a member of the Resource Development Services Advisory Committee and serves as a consultant for the Alliance’s Executive Consultant Select Group.
He is known for the breadth of his skill set and his depth of experience in nonprofit fundraising. Throughout his fund development career, he has raised millions of dollars in major gifts, grants, and annual fund donations. He has created successful fundraising programs at public and private institutions from New York City to Milwaukee and Chicago.
Iaquinta earned his bachelor's and master's degrees in journalism from Northwestern University (Medill School) and Columbia University in the City of New York (Pulitzer School), respectively.