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IRA Rollover Extension Approved by the House

(Nov. 12, 2007) The House of Representatives has passed legislation, the Temporary Tax Relief Act of 2007 (H.R. 3996), that includes a one-year extension of the Individual Retirement Account (IRA) rollover provision and several other charitable giving incentives.

The version of the IRA rollover provision in H.R. 3996 is exactly the same as current law, which means that:

  • Donors must be age 70½
  • There is a $100,000 annual gap on IRA rollover gifts
  • Gifts must be made directly to a charitable organization (no planned or deferred gifts)

The bill changed the termination date of the IRA rollover provision to Dec. 31, 2008, allowing donors another year to take advantage of the giving incentive.

“While we want the IRA rollover expanded and ultimately made permanent, an extension of the provision was our baseline goal,” said Paulette V. Maehara, CFRE, CAE, president and CEO of AFP. “We appreciate the work of Congressman Rangel [Charles B. Rangel (D-N.Y.), chairman of the Ways and Means Committee] for his work and support in introducing the legislation and shepherding it through the House.”

AFP continues to encourage members to contact their U.S. Senators and urge them to not only extend the IRA rollover but expand it as well. “The provision has extensive support in the Senate, and if we continue to make calls and fax letters, Congress may decide to consider an improved version of the bill,” Maehara added.

Additional Incentives

H.R. 3996 also included several other charitable giving incentives that are much more narrowly focused:

  • Extension of provision encouraging contributions of capital gain real property made for conservation purposes
  • Extension of enhanced charitable deduction for contributions of food inventory
  • Enhanced charitable deduction for contributions of book inventories to public schools
  • Extension of enhanced deduction for corporate contributions of computer equipment for educational purposes
  • Extension of special rule for S corporations making charitable contributions of property

A summary of the bill can be found on the House of Representatives’ Ways and Means Committee website (the IRA rollover extension and other charitable incentives can be found on page 7).

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