The 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.
- Digital marketing through email, enewsletters and ebrochures can be effective for donors for whom you have email addresses.
- Educational donor publications can be used in mailings or at events. These materials include Sharpe Group’s booklets “Giving Through Retirement Plans” and “Planning for the Future” and the Sharpe brochure “The Charitable IRA,” along with R&R Newkirk’s brochure “Your IRA Legacy.”
- Postcard art and copy are available for download on the Sharpe website.
- Articles written for Sharpe newsletters and gift planning websites are available for web and newsletter clients.
- See past Give & Take articles to learn more about IRA gifts. In particular, “Don’t Let Your Charitable IRA Donors Make This Common Mistake” (January 2017) and “Who Has an IRA?” (February 2017).
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