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IRA Charitable Roll Over Provides Opportunity for Year-End Donations

by | Dec 22, 2014 | Industry Trends

IRA Charitable roll over 2

On Friday, December 19th, the President signed a bill into law that allows nonprofits to benefit from major charitable contributions made through IRA rollovers. Through December 31st, 2014, certain donors will be able to make gifts directly from their IRA to charity.

What does this mean for your organization?

This legislation provides nonprofit organizations with a short window of opportunity to solicit major donors through the IRA roll over. By informing donors about the time-sensitive opportunity and presenting a compelling case for support, your organization could garner hundreds of thousands of potential year-end contributions that would not have been available before the bill passed.

What are the requirements for the IRA rollovers?
  • Donations must be made to a qualified charity that meets the regulations and standards of the IRS
  • Transfers must be made directly between the IRA and the charity
  • Donors must be at least age 70 1/2
  • Each individual’s transfer is limited to $100,000 per year
What can your organization do to take advantage of the opportunity?

While approval of the IRA Rollover is good news, it unfortunately comes extremely late in the year. Charities and advisors are mobilizing to facilitate IRA charitable rollovers before December 31, 2014.

  1. Analyze your donor file to see which individuals have made gifts from an IRA in the past. Develop a strategy for contacting those donors between now and the end of the year and provide them with a compelling case for support on how their gift can make an impact with your organization.
  2. Identify and contact major donors who meet the qualifications to let them know of the opportunity. Clearly communicate the benefits they receive by donating through a IRA rollover.
  3. Email all of your general fund donors who are over the age of 70 ½ to alert them to the opportunity for them to give from their IRAs. Even if they don’t take advantage of the IRA Rollover, they’ll appreciate that you informed them about this late breaking news.

While you might not be able to personally connect with every donor that qualifies for the IRA rollover, this is a valuable opportunity to cultivate major gifts during this year-end.

If you have any specific questions about how you can maximize this opportunity, connect with the team at Pursuant today.