NEW LEGISLATION PERMITS TAX-FREE GIFTS TO CHARITY

UTICA, NY – As part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, legislators passed a two-year extension of the Charitable IRA Rollover, making it easier for Americans to give to charitable causes tax-free. The extension is retroactive for 2010 donations, if gifts are made by January 31, 2011, and applies through December 31, 2011 for 2011 giving. Peggy O’Shea, President/CEO of The Community Foundation of Herkimer & Oneida Counties, Inc. noted, “It is a win-win for people who would rather give to charities they care about than pay taxes.”

The new law allows holders of traditional IRAs, who are at least 70½ years old, to make direct charitable transfers from their IRA accounts up to $100,000 per year for 2010 and 2011. Thus, a single person can transfer a total of $200,000 free from federal tax and a married couple can transfer up to $400,000 free from federal tax from separate accounts. By going directly to a qualified public charity such as The Community Foundation of Herkimer & Oneida Counties, the money is not included in the IRA owner’s income and, most importantly, is not taxed, preserving the full amount for charitable purposes.

Millions of Americans continue to save pre-tax dollars in individual retirement accounts and some have accumulated more in these accounts than they need for daily living and long-term care in retirement. This is an opportunity for them to avoid the income tax that must be paid on withdrawals, whether to them during their lifetimes or to their heirs.
The Community Foundation 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. Interested parties may contact Foundation Director of Donor Services, Elayne Johnson, at (315) 735-8212 with questions.

The Community Foundation has been a force for improving lives and promoting philanthropy throughout Herkimer and Oneida counties since 1952. The Foundation has made more than 4,300 grants totaling over $35 million in support of causes ranging from education to health care, the arts to the environment. Grants are generated by the more than 270 funds that comprise The Foundation’s endowment, established and advanced by area individuals and families.

For more information about The Community Foundation, call 315-735-8212 or visit www.foundationhoc.org.