The Council has actively supported extending and expanding the IRA charitable rollover since its inclusion in The Pension Protection Act of 2006 (PPA). As of June, 2015, the IRA charitable rollover is not yet available for 2015 gifts. Congress has not extended the provision past 2014, though the Council is aggressively advocating for the provision to be passed quickly into permanent law to eliminate the need for annual extensions.
Prior to 2006, taxpayers wishing to transfer Individual Retirement Account (IRA) assets to charity first had to recognize the amount as income, make a transfer, and then claim a charitable deduction for the amount gifted. This often resulted in tax liability, even though the donor ultimately transferred the entire IRA distribution to charity. PPA partially solved this problem by allowing taxpayers age 70 ½ or older to transfer up to $100,000 annually from their IRA accounts directly to charity without first having to recognize the distribution as income. The IRA charitable rollover has proven to be very popular with taxpayers and beneficial to charities.
Despite its broad appeal, the provision remains limited in several respects: it is limited to taxpayers age 70½ or older; the amount of gifts is capped at $100,000; and donors are specifically not permitted to make charitable rollovers to donor-advised funds, supporting organizations, and private foundations.
The Council supports:
- Making the IRA charitable rollover permanent law as soon as possible
- Enhancing the IRA charitable rollover by dropping the age threshold and expanding the organizations eligible for transfer of the IRA distribution to donor advised funds, supporting organizations and private foundations.
The Council believes that a permanent, enhanced IRA charitable rollover would increase charitable giving and promote more equitable tax policy.
The America Gives More Act of 2015 (H.R. 644), passed by the House on February 12th, 2015, would make the IRA charitable rollover and the other charitable tax extenders permanent law. Senator Charles Schumer (D-NY) reintroduced the Public Good IRA Charitable Rollover Act (S. 1159) on April 30, 2015. This bill would also permanently extend the charitable IRA rollover, but also eliminate the $100,000 cap on rollovers, allow donors to make rollovers beginning at age 59½, and permit rollovers to donor-advised funds, supporting organizations, and private foundations.
- Senate Bill S. 1159 – Public Good IRA Rollover Act of 2015
- House Bill H.R. 644 – America Gives More Act of 2015
Council Issue Papers:
- Council Analysis of the IRA Charitable Rollover for 2014 and 2015 donations