In early August 2006 Congress passed long-awaited legislation that will allow people who are 70 ½ or older to make direct transfers from traditional and Roth IRAs to qualified public charities. Donors can do this without taking distributions into their taxable incomes. IRA transfers to nonprofits cannot exceed $100,000 per year, including tax year 2006, and can be made through the end of 2007. President Bush signed the bill on August 17.

At The Norfolk Foundation IRA donors may choose from designated, unrestricted, field of interest or scholarship funds and qualify for the tax-free rollover. This charitable transfer will allow donors to meet required minimum distributions from IRAs. Excluded by the legislation, however, are transfers to donor advised funds and supporting organizations.

For details, contact Nan Edgerton, vice president of development, at nedgerton@norfolkfoundation.org or (757) 622-7951.
 

Here are two excellent resources that provide further information on the IRA Charitable Rollover opportunities:

• The Council on Foundations has prepared a detailed list of FAQs on IRA Charitable Rolloversand how foundations like The Norfolk Foundation can put such gifts to work in a donor’s community.
   

• In an article Mark D. Hoffman, editor and chief of the Planned Giving Design Center, reviews the new rules and provides information for clients, donors, charities and IRA administrators. His article contains sample documents for IRA plan owners to use for a charitable distribution and to notify a charity about a gift from an IRA.