Tax Savings for Individuals, Support for Non-Profits
State College, PA – It is now easier – and a permanent option – to make a charitable gift from your IRA thanks to the PATH Act, which was passed by Congress on December 18. The Charitable IRA provision allows individuals to roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charity without being federally taxed. These charitable gifts are important giving vehicles for local non-profit organizations and empower people to strengthen their communities through these gifts.
“It is a win-win—for people who would rather give to charity than pay taxes and for the non-profit organizations they choose to support,” explained Molly Kunkel, Executive Director of Centre Foundation.
Annually, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000. Individuals may exclude the amount distributed directly to an eligible charity from their gross income. Centre Foundation can help donors execute the transfers and choose from several charitable fund options for their gift.
“For anyone interested in establishing a permanent legacy in this community, this is the opportunity of a lifetime to make the gift of a lifetime,” said Kunkel.
A provision in the federal law extends this special option: transferring IRA assets directly to charity. By going directly to a qualified public charity such as Centre Foundation, the money is not included in the IRA owner’s income and – most importantly – not taxed, preserving the full amount for charitable purposes.
“For larger estates, a good portion of IRA wealth goes to estate taxes and income taxes of beneficiaries,” Kunkel said. “Experts estimate heirs may receive less than 50% of IRA assets that pass through estates. It’s important to explore these charitable IRA options if you want to have more control over where your money ultimately goes.”
To learn more about the Charitable IRA provision and how you can make a gift of a lifetime before the end of the year, please contact Centre Foundation’s office at 814-237-6229.
Centre Foundation is committed to helping donors fulfill their philanthropic goals by building and maintaining a permanent collection of endowment funds. The Foundation champions the betterment of Centre County for both present and future generations with trustworthy leadership in shaping effective responses to community issues and opportunities.
