Posted May 4th, 2018

Make the Most of Charitable IRA Gifts

examples of Sharpe's IRA informational publicationsThe Charitable IRA (CIRA) provision, allowing individuals with IRAs to make direct charitable transfers totaling up to $100,000 per year, will likely become significantly more popular in 2018 as a result of the new tax law. (See “A Review of Charitable IRA Gifts” for more information.)

The doubling of the standard deduction under the provisions of the Tax Cuts and Jobs Act of 2017 will preclude millions more seniors from itemizing their deductions, including charitable gifts. Others who still itemize deductions will also sometimes make gifts that are too large to deduct in the year of the gift.

Virtually every taxpayer over 70½ who gives to charity should consider taking advantage of the CIRA, a tax-favored method of making gifts to charitable interests. But don’t wait until year-end to encourage these gifts. One of the advantages of CIRA gifts is that the distributions can count toward the individual’s required minimum distribution. If a donor has already taken distributions, it may be too late to benefit from a gift from an IRA this year.

Consider communicating to regular contributors and major gift prospects about the Charitable IRA several times this year using multiple communication channels.

More tips:

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The publisher of Give & Take is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Give & Take may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details.

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