Will an IRA distribution to a fund held by a community foundation qualify for this special treatment? Neither private non-operating foundations nor split interest trusts (such as charitable remainder trusts) are eligible for special treatment as qualified charitable distributions under the law. Individuals can make qualified charitable distributions to a private operating foundation or to a private foundation that elects to meet the conduit rules in the year of the distribution (see Definitions, below). (See What is a donor advised fund? on the Council’s website.) However, distributions from IRA accounts to donor advised funds held by public charities are not considered qualified charitable distributions under this charitable rollover provision. Most contributions to public charities-other than supporting organizations-are considered qualified charitable contributions.
To which charities may donors make qualified charitable distributions? However, because donors exclude this contribution from their gross income, they cannot take a charitable contribution deduction for the contribution to do so would result in a double benefit for donors and that is explicitly prohibited. Under this provision, donors benefit by not having to recognize the amount contributed directly from their IRA to a qualifying charity. Does a donor also receive a charitable deduction when they roll over assets to a charity under this provision? What is the new expiration date of this provision? Individuals may exclude the amount distributed directly to an eligible charity from their gross income. The provision has a cap of $100,000 for charitable distributions from individual IRAs each year. A qualified charitable distribution is money that individuals who are 70½ or older may direct from their traditional IRA to eligible charitable organizations. The law uses the term “qualified charitable distribution”to describe an IRA charitable rollover. On Decemthe President signed the PATH Act making this special provision permanent. While this initial provision expired on December 31, 2007, it has been extended several times. The Pension Protection Act of 2006 (PPA) permitted individuals to roll over up to $100,000 from an individual retirement account (IRA) directly to a qualifying charity without recognizing the assets transferred to the qualifying charity as income. Foundation-Specific Programs & Services.National Standards for US Community Foundations.Council Letters to Congress & Administration.FEMA National Disaster Recovery Program Database.Accelerating Charitable Efforts (ACE) Act.Public Policy and Advocacy for Grantmakers.
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