by Beverley McLain in Giving
IRA rollover can fund charitable legacy — and save taxes
2018 will be here before we know it. If you are 70 1/2, now is the time to do good things for the community before the end of the year while you:
Catch a tax break.
Potentially avoid a Medicare premium increase.
Bypass the AGI limitation for cash gifts this year.
How? With a charitable contribution from their IRA. While the IRS has specifically excluded donor advised funds from the Charitable IRA Rollover provision, many of our donors have taken advantage of other ways to use their required distribution in meaningful ways – without incurring any income tax.
The Tampa – Hillsborough County Children’s Library Foundation was established last year with an IRA Charitable Rollover. The donors have been passionate about children’s literacy for many years, and now their fund will support local children’s library programs virtually forever.
Another long-time donor uses his required distributions every year to add significant dollars to several nonprofit endowments administered by the Community Foundation including Tampa General Hospital, Bay Area Legal Services and WEDU.
The important work done by Meals on Wheels was supported by another donor who used her distribution to seed an Agency Reserve Fund at the Community Foundation. Reserve funds are a flexible, simple way for organizations to build reserves for a project or future operational needs.
Our unrestricted Community Impact Fund is another option. Gifts to this fund support community initiatives and competitive grants to local nonprofits, and other areas of emerging need and opportunity.
Plan now if you are already receiving required distributions from you IRAs and who will start this year at age 70 ½. You can make a direct Charitable IRA Rollover gift to a fund or endowment at the Community Foundation of Tampa Bay for any amount up to $100,000.
Rollovers must be received by December 31, 2017. Please let us know if you plan to make a distribution to us so we can be sure to credit it to the proper fund. And we're happy to provide a sample letter to send to your IRA administrator to make it easy.
Call me at 813.609.4855 if this seems like a good fit for you. Or email me at firstname.lastname@example.org. We’re here to help.