• Charitable IRA Rollover to End??
• Eveleth Area Community Foundation Awards $3,000 in Grants
• Four Nonprofits Honored with 2011 Touchstone Award
• Community Foundation Accepting Gifts in Memory of Jim S. Miner Benefiting the Second Harvest Michael E. Miner Hunger Endowment Fund
• Knight Soul of the Community - Duluth: New study finds ties between community attachment and economic prosperity
• Community Foundation Awarded First Minnesota Ethical Citizens Award for Speak Your Peace
• 2010 Annual Report

Charitable IRA Rollover to end?

Charitable IRA Tax Bill Provision ending December 31, 2011

Provision Permits Tax-free Charitable Transfers from IRAs

As part of Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, legislators passed a two-year extension of Charitable IRA legislation, making it easier for Americans to give to nonprofits, such as the Duluth Superior Area Community Foundation. The Charitable IRA provision, first enacted in 2006, has the power to help local charities strengthen their communities at a time when it is needed most.

The current law allows taxpayers 70 ½ and older to share the wealth by giving retirement savings directly to charity—and bypassing income tax.

This law is important to local charities that continue to build community in an uncertain economy. The tax benefit expires December 31, 2011.

“This really is a limited-time offer: the window is open now, and with the current political and economic climate we are not anticipating that this tax provision will be extended again,” said Holly C. Sampson, president of the Duluth Superior Area Community Foundation. “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.”

A provision in the new federal law extends an option: transferring IRA assets directly to charity. By going directly to a qualified public charity such as the Community Foundation, the money is not included in the IRA owner’s income and—most important—is not taxed, preserving the full amount for charitable purposes.

During 2011, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000 per year. A single person can transfer $100,000 free from federal tax; a married couple can transfer up to $200,000 free from federal tax from separate accounts. Duluth Superior Area Community Foundation staff can help donors execute the transfers and choose from several charitable fund options for their gift. Donor Advised Funds do not qualify for tax-free IRA transfers.