**New Material Posted**: IRA Charitable Rollover One-Pager
Charitable Giving Incentives Expire
A number of critical giving incentives often included as part of the annual "tax extenders" package expired at the beginning of 2012. These incentives include:
- IRA charitable rollover
- Charitable deduction for food inventory
- Charitable deduction for book inventory
- Charitable deduction for qualified computer contributions
- Charitable deduction for land conservation
Finance Committee Hearing
The Senate Finance Committee held a hearing January 31, 2012 entitled "Extenders and Tax Reform: Seeking Long-term Solutions."
Senate Finance Committee Chairman Max Baucus (D-MT) has vowed "to find a bipartisan path forward" for these tax extenders, adding that "it is critical to extend these tax provisions early in the year to maximize their effect and provide certainty for the 2012 tax year."
- Joint Committee on Taxation (JCT) legislative background report on the expired and expiring incentives.
IS Response
Independent Sector sent a letter to members of the Finance Committee, including Chairman Max Baucus (D-MT), ranking member Orrin Hatch (R-UT) urging the reinstatement of the charitable provisions as soon as possible.
IS has also signed onto a broader tax coalition letter sent to every member of Congress urging quick legislative action to restore the expired tax provisions.
TAKE ACTION
Contact your Congressional representatives and urge them to reinstate the IRA charitable rollover and other giving incentives as soon as possible. Use this one-pager.
IRA Charitable Rollover
The IRA Rollover was first enacted in 2006 as part of the Pension Protection Act. The provision allows individuals aged 70½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to public charities without having to count the distributions as taxable income.
Since the provision was first enacted, Americans have made millions of dollars of new contributions to nonprofits -- including social service programs, religious organizations, arts and cultural institutions, schools, and health care providers -- that benefit people every day. LEARN MORE.
Legislation in the 112th Congress
Sens. Chuck Schumer (D-NY) and Olympia Snowe (R-ME) have introduced the Public Good IRA Rollover Act of 2011 (S. 557). The legislation would make permanent and expand the IRA charitable rollover, lifting the $100,000 charitable gift limit and
allowing for certain giving, like to a charitable remainder trust, to begin as
early as age 59 ½.
A companion bill (H.R. 2502) has been introduced in the House by Reps. Wally Herger (R-CA) and Earl Blumenauer (D-OR).
Outlook
Because the IRA rollover and other incentives have come under close scrutiny in the 112th Congress, Independent Sector will be working closely with its members and will support coalitions to make the case for bringing greater certainty to these powerful giving tools beyond 2012.
