Professional Advisor Center

The IRA Charitable Rollover:  EXTENDED IN 2013

With the agreement on a “fiscal cliff” deal, in the bill that ultimately passed on January 1, 2013, (the American Taxpayer Relief Act of 2012) the charitable deduction will continue to be coupled with an individual’s or household’s corresponding tax rate.  Additionly, the IRA Charitable Rollover provision has been extended.  Tax-free distributions to charity from an Individual Retirement Arrangement (IRA) held by someone age 70 1/2 or older of up to $100,000 per taxpayer will be extended until December 31, 2013.

An IRA charitable rollover is described as a “qualified charitable distribution,” or money that individuals may direct from their traditional IRA to eligible charitable organizations such as The Community Foundation of Orange and Sullivan.  Individuals may exclude the amount distributed directly to charity from their gross income.

Donor-Advised Funds and private foundations do not qualify for the IRA charitable rollover.

Through The Community Foundation, donors of an IRA have several options to support charitable causes and community needs, including those that cannot be anticipated at the time your gift is made.  For some, this is a once-in-a-lifetime opportunity to create an endowment to benefit the communtiy in perpetuity through vehicles such as:

* A Designated Fund to benefit a favorite charity – a senior center, museum or any qualifying nonprofit organization of a donor’s choice;

* A Scholarship Fund to support students pursuing education aspirations; or

* A Field-of-Interest Fund to ensure that resources are forever available for causes close to a donor’s heart, ranging from arts to zoology.

Please contact us to learn more at 845-769-9393.

Background on the IRA Rollover provision:

This provision was initially established through the Pension Protection Act of 2006 and was extended in December of 2010, allowing donors age 70.5 and older to direct a portion of their IRA, up to $100,000 to charity, without recognizing the assets transferred to the qualifying charity as income.  Through December 2011 when the provision expired, The Community Foundation helped many donors turn a portion of their IRA into a tax-saving gift.

As of January 1, 2013, this provision became active again.

For complete details…Click Here.



Talking with your Clients about Charitable Giving

Many advisors face a delicate dilemma.  They want to discuss charitable giving with their clients, but they need to avoid appearing to influence their clients to select a specific charity.  That’s where the Community Foundation is your partner in philanthropy.

The Community Foundation is a single, convenient vehicle for meeting a variety of your client’s charitable interests. We work through you. You stay in control of your client relationships.

We partner with you. We provide support, information, sample fund agreements, bequest language, and expertise on charitable giving and grantmaking

We help you build stronger relationships with your clients.  Your clients will appreciate the charitable impact and tax advantages you help them achieve.

We can help you as a professional advisor by providing:

  • Personalized gift planning illustrations for your clients ranging from charitable remainder trusts, charitable lead trusts, wealth replacement options and insurance trust illustrations.
  • Confidential gift planning – your client can create an anonymous charitable fund if they wish.
  • Legal review of fund documents – the Community Foundation’s legal council will provide assistance with documents.

We offer Flexibility for your Clients:  We offer flexibility which can mean a lot to your clients.  Whatever their charitable wish – to support education or to aid the homeless and every imaginable charitable purpose in between, we can be of real service.  Your clients can select one or a combination of our basic types of funds to create their customized plan to fulfilling their charitable dream, while helping the donor achieve maximum tax benefits.

We will ensure that if a change of circumstances makes compliance with the terms of the gift instrument “unnecessary, undesirable, impractical or impossible,” we will carry on your client’s charitable wishes in perpetuity.

Please use the links to the right to learn more about our planned giving arrangements and educational resources available as you help your clients achieve their charitable ambitions.

Contact Karen Minogue, Executive Director, to access without charge, the gift planning experience of the Community Foundation.