AFP Urges Congress to Include IRA Rollover in Stimulus Package
(Jan. 28, 2008) AFP has submitted a written statement to the Senate Finance Committee, urging Senators to include an extension of the IRA Rollover provision in the economic stimulus package currently being considered.
Last week, the committee, chaired by Sen. Max Baucus (D-Mont.), held two hearings focused on the economic stimulus package that Congress hopes to pass in order to prevent a recession. The hearings coincided with the U.S. House of Representatives’ consideration of a similar package.
During the hearings, Chairman Baucus remarked that “fiscal stimulus must be timely. That means that once enacted, the stimulus must take effect quickly. . . . Fiscal stimulus should be well-targeted. Stimulus should be targeted on those who most need the help.”
In response to the hearings, Paulette Maehara, CFRE, CAE, AFP’s president and CEO, submitted a written statement to the committee, urging members to include an extension for the IRA Rollover provision.
The current provision expired on Dec. 31, 2007, due to Congress’ inaction. Under the provision, a donor who had reached the age of 70½ was allowed to exclude from his or her income any IRA funds up to $100,000 that were withdrawn and transferred to a charity when filing a tax return for the year of the transfer.
“One way of spurring economic prosperity in our country is to enhance the charitable sector’s ability to provide its philanthropic programs and services that add so much to the nation’s economy,” noted Maehara. “However, to provide its essential services and programs, the charitable sector needs resources...Prior to its expiration on Dec. 31, 2007, the IRA Rollover provision was providing such vital resources to the charitable sector on a very large scale.”
Maehara added that the IRA Rollover provision has brought in over $136 million in new gifts for the charitable sector according to a recent National Committee on Planned Giving survey.
A copy of AFP’s statement is available in PDF format in the Attachments section below.
What You Can Do
AFP urges all members to call their two Senators and U.S. Representative and request that Congress include an extension of the IRA Rollover provision in the economic stimulus package.
Detailed instructions are below.
- Identify your U.S. Representative and two U.S. Senators.
Use this link and type in your zip code to determine your U.S. Representative: http://www.house.gov/zip/ZIP2Rep.html.
Use this link to determine your two U.S. Senators: U.S. Senators by State.
- Call the Congressional switchboard (202-224-3121) and ask to speak to your House Member or Senator.
- Use the following talking points:
- Say that you are calling from the Senator’s state or the Representative’s district. Please tell them your hometown.
- Mention that you are a member of AFP, an organization with over 25,000 members in the U.S., representing all types of charities.
- Ask the member of Congress to support an extension of the IRA Rollover provision that expired on Dec. 31, 2007.
- Explain that, under the IRA Rollover provision, a donor who has reached the age of 70½ would be allowed to exclude from his or her income any IRA funds up to $100,000 that are withdrawn and transferred to a charity.
- Remind the member of Congress that the provision already has brought in over $136 million to the charitable sector.
- Finally, emphasize that your organization and many people in your state are counting on the member of Congress’ support.
- Urge the member of Congress to support the inclusion of the IRA charitable rollover extension in the economic stimulus package.
If you have any questions, contact Jason Lee, director, government relations, at firstname.lastname@example.org.