Encourage Charitable IRA Gifts
The Tax Cuts and Jobs Act of 2017 ushered in several changes to our nation’s tax laws that may impact charitable giving. One of the things that remained untouched was the Charitable IRA (CIRA) provision. The CIRA is even more attractive in light of the tax act’s raising of the standard deduction reducing the number of individuals who can itemize.
What is the CIRA?
The CIRA provision allows individuals age 70½ and older to make charitable gifts from individual retirement accounts (IRAs) directly to qualified charities in any amount up to $100,000 per year tax free.
This provision applies only to IRAs and not to 401(k)s, 403(b)s or other tax-favored retirement plans. Gifts must be transferred directly to a qualified charity and may not be made to donor advised funds, private foundations or supporting organizations. CIRA gifts can count toward minimum required distributions, thereby eliminating taxes on those funds.
SHARPE newkirk has communication materials you can use to educate your donors about this law and how it will benefit them:
- “The Charitable IRA” brochure
- Suggested language for donor communications
- Free postcard PDFs available online for immediate download to print:
Other SHARPE publications that also incorporate information about the CIRA:
- Charted Giving Plans (booklet)
- Giving Through Retirement Plans (booklet)
- Planning for the Future (booklet)
SHARPE Give & Take articles provide helpful resources to better understand the CIRA and how to promote this way of giving:
- “A Review of Charitable IRA Gifts” (May 2018)
- “Making the Most of Charitable IRA Gifts” (May 2018)
- “The Charitable IRA Boom” (April 2017)
- “Five Tips for Fundraisers New to Gift Planning” (March 2017)
- “Who Has an IRA?” (February 2017)
- “Don’t Let Your Charitable IRA Donors Make This Common Mistake” (January 2017)
- “Help Your Donors Understand the Charitable IRA Law” (February 2016)
SHARPE newkirk blog articles:
- “Let’s Look at Charitable IRA Gifts” (March 28, 2018)
- “Finally! The Charitable IRA Provision Is Permanent” (January 11, 2016)