Tax Relief Act – Charitable IRA Rollover Tossed In!

There are going to be a million comments and explanations of this new tax relief thing so I am only going to highlight those items that might impact charities and fundraisers.

Firstly, did anyone notice that we NOW have the IRA charitable rollover provision for 2010?  Retroactive.  Big deal.  And, we have exactly 10 days left this year to scour the planet for anyone age 70.5 who hasn’t already taken their IRA RMDs (IRA Required Minimum Distributions).

So, in theory, if you can let your donors who are 70 1/2 and older who haven’t take their RMDs yet (some people like to wait) know that they can avoid the taxable income of their RMDs by making a 2010 Charitable IRA rollover gift (by Jan 31, 2011).  You might get a gift or two.

Here is my short summary of that provision on my firm’s website:

Personally, I doubt anyone was still waiting for this provision in 2010 but it is worth while spreading the news in hopes of increased 2011 IRA rollover giving.

Stay tuned for some interesting estate/gift/generation skipping tax info on the new law.

One comment

  1. I received a great question last night from a donor – can someone who has already taken their IRA RMD (Required Minimum Distribution) for 2010 give that money back and than use the IRA rollover to fulfill their 2010 RMD?

    You would think that the law would have that option for those inclined but the answer was NO. At least, not yet and not likely to change in time for any significance this year.

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