Obama Tax Law Extends the Charitable IRA Rollover – A Win-Win for You and Your Older Donor | npENGAGE

Obama Tax Law Extends the Charitable IRA Rollover – A Win-Win for You and Your Older Donor

By on Dec 28, 2010


On December 17, 2010, President Obama signed the much-anticipated Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  Among other things it includes or extends provisions that benefit donors and charitable organizations.  One of the most exciting provisions on charitable donations is the extension of the Charitable IRA Rollover.  This law allows people who are 70 ½ or older to make tax-free transfers of up to $100,000 per year from a Traditional IRA or Roth IRA directly to charity.  The law was originally effective for 2006 and 2007 and then twice extended through 2009.  It was allowed to expire on January 1, 2010, however. 

The new law extends the charitable IRA rollover for two years by allowing gifts completed in January of 2011 to be treated as if they were made on Dec. 31, 2010 and also allows transfers through the end of 2011. 

According to early information collected by the Partnership for Philanthropic Planning (PPP) from more than 900 nonprofit organizations, hundreds of millions of dollars in donations have gone to charity through IRA distributions.  At the time of their report, the average distribution was over $16,000 with the most common distribution was $5,000.

Both PPP  and the Planned Giving Design Center (PGDC) have information and resources on soliciting and accepting Charitable IRA Rollover gifts(PGDC requires a free registration).


Katherine Swank, JD, senior consultant at Target Analytics, a Blackbaud Company, helps nonprofits apply statistical analytics and donor research to their fundraising efforts with an emphasis on planned gifts. She has raised nearly $250 million for mission funding during her nonprofit development career. Katherine is a retired affiliate faculty member of Regis University’s master of Global Nonprofit Management degree program, where she taught courses on wealth and philanthropy.  Along with writing for publications like Advancing Philanthropy and Philanthropy Journal, she is also a frequent presenter for industry conferences such as NACGP, AFP, APRA, and bbcon. Having grown up in a tourist destination in Colorado, Katherine has become an avid world traveler and is exploring her way through the 1,000 places to see before you die, albeit slowly.  Connect with her on Twitter @KatherineSwank.

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