Charitable Opportunity for IRA Owners
From October 2008 CCF News for Donors

As part of the Tax Relief Act of 2008, Congress extended the IRA Rollover Act of 2006 and in doing so, created an excellent charitable planning opportunity for IRA owners for tax years 2008 and 2009. The IRA Rollover Act permits an IRA owner age 70½ or older to make a direct transfer from his or her IRA to charity. The transfer may be up to $100,000 in one year and this IRA rollover will exist for year 2008 and year 2009.

Key provisions include the following:

• Donors must be age 70½ at the time the gift is made.
• Charitable gifts must be made directly from an IRA to the charity.
• An individual can give a maximum of $100,000 in 2008 and an additional $100,000 in 2009. A spouse can give an equal amount from his/her IRA.
• Individuals can make as many gifts in any amount to as many charities as desired as long as the total does not exceed $100,000 for 2008 and an additional $100,000 in 2009.
• The gift may NOT be made to a donor advised fund, or supporting organization at CCF. A donor can, however, make a gift directly to CCF to support the foundation’s own grant making, such as CCF’s priority funding in the arts.
• The gift may NOT be made to a private foundation.
• The gift may be made to an organization to fulfill a legally binding pledge the donor has previously made to the organization.
• The gift may NOT be made in exchange for a charitable gift annuity or to a charitable remainder trust.

For more information, please contact Director of Gift Planning Carol Bradford at 213-452-6266.