FOR IMMEDIATE RELEASE:
December 16, 2014
Max Samis, Rabinowitz Communications, email@example.com
Jewish Federations Express Thanks for IRA Charitable Rollover Extension by Senate
Washington, D.C. – Following the House of Representative’s action earlier this month, the U.S. Senate voted to renew the IRA Charitable Rollover, a tax extender important to many charities throughout the country. The Jewish Federations of North America welcomed the vote, but expressed disappointment that lawmakers have yet to pass a more permanent solution that would provide greater certainty for taxpayers and charitable organizations that depend on tax-free distributions from individual retirement accounts (IRA) to bolster their fundraising activities.
“Although we are grateful that the Senate has renewed the IRA Charitable Rollover for 2014,” stated William Daroff, senior vice president for public policy and director of the Washington office for Jewish Federations, “the time has come to make this important giving incentive a permanent part of the tax code. Doing so would provide donors and charitable organizations, such as Jewish Federations, with certainty in the future and allow them to work with donors and others to leverage retirement assets that can be used to care for the most vulnerable among us. We hope that the next Congress will be able to come together to provide this much needed long-term fix.”
The current version of the IRA charitable rollover was enacted in August 2006, as part of the Pension Protection Act of 2006. The provision, which again expired on December 31, 2013, permits individuals age over 70 ½ to make annual tax-free gifts up to $100,000 directly from their IRA to eligible public charities. It has been an overwhelming success as a giving incentive, helping charities provide needed services at a time of increasing demand and when fewer resources are available from government sources. In a little over seven years, Jewish Federations have received close to $40 million from IRA charitable rollovers.
Jewish Federations will continue to emphasize the importance of making the IRA charitable rollover permanent and advocate for a more robust version of this proven charitable giving incentive.
The Jewish Federations, collectively among the top 10 charities on the continent, protects and enhances the well-being of Jews worldwide through the values of tikkun olam (repairing the world), tzedakah (charity and social justice) and Torah (Jewish learning).