New law creates a special, limited-time charitable opportunity

On December 17, 2010, new legislation was passed extending the IRA charitable rollover until December 31, 2011.  As a result, people aged 70 ½ and older have a special tax-free opportunity to make the charitable gift of a lifetime. 

How the IRA charitable rollover works:  If you are at least 70½, the new law allows you to transfer up to $100,000 of your IRA assets for each of 2010 and 2011 directly to a qualified public charity such as The Rhode Island Foundation.  Since the assets you transfer will not be recognized as income, they will not trigger federal income taxes today or estate tax in the future.  If you are married, you and your spouse can each transfer up to $100,000 per year.

At The Rhode Island Foundation, you have a number of options for your IRA charitable rollover:

• Through a transfer to our Fund for Rhode Island, you can help the Foundation address the most critical unmet needs in our state.
• You can establish or add to a field of interest fund in support of a particular area of interest within Rhode Island, such as the arts, education, or the environment.
• You can establish or add to a designated fund for one or more nonprofits of your choice.

Please keep in mind:

• You only have until January 31, 2011 to make your IRA charitable rollover for 2010. For 2011, however, you have until December 31, 2011 to accomplish your transfer.
• Only IRA withdrawals qualify for IRA charitable rollover treatment.  They cannot come from any other type of retirement plan, nor do they qualify for any additional charitable deduction.
• IRA charitable rollovers cannot be made to donor advised funds, charitable gift annuities, or charitable remainder trusts, nor do they apply to private foundations and supporting organizations.


To learn more about this and other charitable giving strategies, contact our Development Office at (401) 274-4564.