IRA Charitable Rollover

At the end of 2015, Federal Legislation was passed making the IRA direct charitable rollover gift option permanent. If you are 70 ½ years old or older, you can take advantage of this simple way to benefit The Baby Fold and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as The Baby Fold without having to pay income taxes on the money. This gift counts as your required minimum distribution (RMD), without including the distribution as personal income.

Criteria:

  • You must be 70 ½ or older when the transfer is made.
  • The transfer must go directly from your IRA administrator to The Baby Fold.
  • Rollover gifts are limited to $100,000 per taxpayer per year. If married, and each spouse has an IRA, then each may gift up to $100,000.
  • The gift counts as all or part of your IRA required minimum distribution.
  • The distribution is not reported as income, so there is no adverse income tax effect.
  • The law is applicable solely to make direct gifts to charity, not for planned gifts such as charitable gift annuities or charitable remainder trusts. Gifts cannot go to donor-advised funds or private foundations.

As you plan your minimum required distributions for this year, consider using your IRA funds as your charitable gift to The Baby Fold or for paying an existing pledge commitment. It is wise to consult with your tax professionals if you are contemplating an IRA Charitable Rollover gift.

How to make an IRA Charitable Rollover Gift:

  • Contact Norris Porter at 309-451-7204 to inform The Baby Fold of your intent to make an IRA charitable donation.
  • Contact your IRA administrator to transfer your desired amount. Ask if they have forms to request a transfer or use this sample request form.
  • The Baby Fold is a 501(c)(3) nonprofit – our tax identification number is 37-0673453
  • Rollover checks should be made payable to The Baby Fold and mailed to:

The Baby Fold
c/o Norris Porter
Asst. VP Major Gifts & Planned Giving
108 E. Willow
Normal, IL 61761