Today, Congress extended the IRA Charitable Rollover Provision to December 31, 2011. This new law gives you another opportunity to make an annual gift of up to $100,000 from your IRA to a public charity(s), if you qualify. Although gifts to donor-advised funds (such as your Servant Giving Fund) are not allowed, we can help you establish a “Designated Fund” that allows you to (a) contribute from your IRA, (b) designate which charity you wish to receive the funds, and (c) advise Servant about the timing of grant checks to the charity – as well as the investment of the funds prior to distribution.
Can I rollover funds from my IRA to charity for the 2010 tax year?
Yes, but only if your gift is made by January 31, 2011. Gifts made from February 1 – December 31, 2011, will qualify as 2011 gifts.
During 2010 and 2011, lifetime distributions from Traditional IRAs by plan owners who have attained at least age 70 ½ (on the date of distribution) to charity may distribute up to $100,000 per year from their IRA directly to a charitable organization and exclude the contributed amount from their gross income for tax purposes. This amount can be counted towards the annual mandatory IRA distribution.
Who can receive IRA distributions at Servant?
IRA distributions can be made to field of interest funds, designated funds, scholarships, and restricted/general endowments in which donors or their designees have no advisory rights. IRA distributions cannot go to a donor-advised fund, a supporting organization, or a private foundation. The distribution cannot be made in connection with a Charitable Gift Annuity or Charitable Trust, and the donor may receive no quid pro quo benefits in exchange for their contribution.
So, now that I qualify and my IRA qualifies, how do I do this?
1. Contact your IRA custodian. The custodian will make the check payable directly to Servant Foundation.
2. Establish your Designated Fund(s) with Servant indicating the recipient charity(s).
3. Obtain a written receipt from Servant.
4. Work with your accountant to determine the exclusion on your tax return and any net taxable income amount which will need to be included on your 1040.
5. Servant will distribute the funds in accordance with your Designated Fund Agreement.
To learn more about IRA Charitable Rollovers with Servant, call Jonathan at 913-310-0279.