IRA Charitable Rollover Deadline


We’ve talked about this in the past, but with the extension deadline only a couple of days away, it bears repeating:


If you are over age 70-1/2 and have an IRA, you can make charitable donation distributions from that IRA and NOT have it considered income and therefore the donated amount won’t be taxed.


The deadline is December 31, 2011.


Donors in Grundy County who meet the criteria are encouraged to take advantage of this law extension to benefit the charities they care about, and the Community Foundation of Grundy County has various services to help.


If you know which charities you care about most, you can have your IRA administrator cut a check directly to the charity with your compliments.  This includes any of our fellow not-for-profits in Grundy County, across the nation, and the Community Foundation of Grundy County.  Unrestricted donations to us are used to fund the Back-to-School Fair, the Grundy Partnership for Children, the Behavioral Health Alliance, the Grundy County Growth Conference, and 941-HELP.


If you have a sizable IRA distribution and want to support your favorite charity for a longer term, we suggest you set up an endowment here at the community foundation.  There are four fund types to choose from:


A Designated Fund supports the charity of your choice.  The principal is invested and the earnings are forwarded to the charity for their unrestricted use on an annual basis.


An Agency Fund can be set up by a donor but the withdrawal decisions are made by the charity.


A Field of Interest Fund supports a broad category such as “the arts,” “healthcare,” “historic preservation,” and “agriculture.”  The Grants and Program Committee of the Foundation partners with local organizations working in that area to use these monies throughout the county for the benefit of all.


A Scholarship Fund provides scholarships for students and can benefit students of all ages, colleges, and fields of study.  The details for the criteria are established by the donor and an impartial committee reviews applications and finalizes the awards.


It should be noted that, under the new law, IRA distributions cannot be used to set up Donor Advised Funds and still get the income benefit.  Only the funds listed above meet the criteria that allows IRA distributions to not be counted as income.


Please call us at 941-0852 to get a fact sheet and to learn more about our scholarship, designated, agency, and field of interest funds that are eligible for this IRA Charitable Rollover provision.