Charitable IRA Rollover

Under the extended charitable IRA legislation, if you’re aged 70½ or older you can make charitable gifts now to the Anne Carlsen Center using funds from your individual retirement accounts (IRAs) without undesirable tax effects.

Previously you would have had to report any amount taken from your IRA as taxable income. You could then take a charitable deduction for the gift, but only up to 50 percent of your adjusted gross income. In effect, this caused some donors to pay more in income taxes than they would have if they hadn’t made a gift at all.

Fortunately, now these IRA gifts can be accomplished simply and without tax complications. Plus, you can make the gifts now—while you are living and able to witness the benefits of your generosity. This unique opportunity expires at the end of 2011.

Profile of a Giver of this Gift

• You are age 70½ or older at the time of the gift.
• Your gifts total any amount up to $100,000 in 2011.
• You transfer funds directly from an IRA to one or more qualified charities, but not to supporting organizations (as defined under IRC 509(a)(3), or for charitable gift annuities, charitable trusts or donor advised funds.

Is this Gift Right for You?

A charitable IRA rollover gift works for you if you meet the stated profile and would like to make a charitable gift now—while you are living and able to witness the benefits of your generosity.

Benefits of this Gift

• The transfer generates neither taxable income nor a tax deduction, so you will receive the benefit even if you do not itemize your tax deductions.
• The transfer may count against your unsatisfied required minimum distribution for 2011.
• You’ll make an immediate impact on ACC, allowing you to witness the benefits of your generosity first hand.

How to Make this Gift

1. Choose the IRA from which you’d like to make your gift.
2. Select the amount of gift you would like to make.
3. Contact the IRA administrator for the forms necessary to transact your gift. Or use the following sample letter to send to your IRA administrator.
   Date
   Name of IRA administrator
   Address
   City, State ZIP
   RE: Request for direct charitable distribution from my IRA
   Dear IRA Administrator:Please accept this letter as my request to make a qualified charitable distribution from my individual retirement account number [insert number here] as provided by the Pension Protection Act of 2006 and as extended through 2011.Please issue a direct transfer of funds in the amount of $_______ payable to [insert official name of qualified charitable organization] (which is a qualified public charity and is not a donor advised fund or supporting organization under IRC 509(a)(3) at the following address:Name of qualified charitable organization
   Address
   City, State ZIP
   Attn: [insert name of organization's development officer]In your documentation to the above named charitable organization, please clearly indicate my name and address as the donor of record in connection with this transfer, and copy me on the transmittal at the address below. It is my intention that this gift complies with IRC 408(d)(8). It is also my intention to have this transfer qualify during the 2011 tax year. Therefore, it must be postmarked no later than Dec. 31, 2011.

   If you have any questions or concerns regarding this request, I can be reached at [insert your telephone number and/or email address]. Thank you for your prompt attention to and assistance in this matter.

   Sincerely yours,

   Your name
   Your address
   City, State ZIP
   Your phone number

For More Information

We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to futher discuss your giving options.

For Additional Resource Information Click Here

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.