Some things just go together well . . . like chocolate and peanut butter. And now, Congress is poised to bring together two powerful charitable gift types into one gigantic win for charitable fundraising.
The IRA rollover gift, often called a Qualified Charitable Distribution, may soon get married up with life income gifts. If passed, the Legacy IRA ACT would permit an IRA owner aged 70 1/2 or older to make a one-time qualified charitable distribution (QCD) of no more than $50,000 through charitable gift annuities, charitable remainder unitrusts, and charitable remainder annuity trusts.
This legislation could be a game changer for charitable organizations. It gives older donors the chance to make a gift that reduces their tax bill and pays them back income for life. And, according to the National Association of Charitable Gift Planners, seniors have an estimated $5 trillion in IRA assets.
To learn more about the Legacy IRA Act, the Association of Fundraising Professionals has created House and Senate fact sheets which you can access on their website. The American Heart Association is providing critical leadership to a coalition of more than 60 prominent national organizations working to pass this necessary legislation. Learn more about the Coalition here.
The nonprofit/for impact sector has played a critical role in sustaining families and communities during the pandemic. The House of Representatives passed H.R. 2954, the SECURE 2.0 bill by 414-5. The Senate version, Enhancing American Retirement Now Act, or “EARN Act” passed the Senate Finance Committee as well. According to the National Association of Charitable Gift Planners, this legislation is likely to come to a vote in the full Senate before the end of 2022. It’s not too late to let your Senators know that you support this bill.