In 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 and can be made through the end of 2007.

IRA donors can make their gift to any nonprofit organization, including The Norfolk Foundation. At the Foundation IRA donors may choose from designated, unrestricted, field of interest or scholarship funds. This charitable transfer will allow donors to meet required minimum distributions from IRAs. They can also make a gift of up to $100,000 even if they have already taken their minimum annual distribution. 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.