News

Congress restores Charitable Rollover

By Community Foundation of Henderson County, Published: December 27, 2015

IRA Charitable Rollover is back and now is the time to make a charitable gift.

If you plan to make a charitable gift before the end of the year and also need to take a required distribution from your individual retirement account, you can use all or part of your IRA’s required distribution to reap the best tax benefit by avoiding tax on that income altogether.
Congress recently reinstated a law that allows individuals to make tax-free gifts from your IRA. Known as the IRA charitable rollover, this law no longer has an expiration date so you are free to make gifts from your IRA this tax year (2015) and well into the future. Act right now to take advantage of this opportunity if you would like your gift to qualify for the 2015 tax year. Transfers must be made by Dec. 31, 2015.
The recently reinstated law allows individuals 70½ years of age and older to use IRA assets as charitable contributions. Because this law is now permanent distributions made directly from IRAs at any time during 2015 to qualified charitable organizations receive the tax benefit.
People receive the tax benefit by making gifts of up to $100,000 directly from their IRAs to qualified charitable organizations, such as Community Foundation of Henderson County. These gifts count toward the annual Required Minimum Distribution (RMD) from IRAs as required by the IRS. Such gifts will not be reported as income and are considered gifts over and above adjusted gross income limits that apply to gifts from regular assets, meaning 100% of the gift has no tax consequences.
While the legislation does not permit placing IRA rollover assets into private foundations, supporting organizations or donor advised funds, Community Foundation of Henderson County has many choices for your charitable gifts:

• You can make a gift to the Community Foundation’s unrestricted fund which makes grants to address a broad spectrum of current issues in the community today as well as prepare for future needs that often cannot be anticipated.
• You can make a gift to any of the more than 500 existing endowment funds at the Community Foundation that benefit a variety of nonprofit organizations making a difference in our community.
• You can create a new named fund for a specific charitable purpose.
• You can create a field of interest fund that focuses on a specific area of charitable interest.
• You can create a temporary fund that will support specific charitable interests.

Take advantage of this opportunity and help your favorite charity do their important work today and well into the future. The professional team at Community Foundation of Henderson County is available to assist you with this and other end-of-year gifts. Call CFHC at (828) 697-6224 to talk with a member of the professional team or visit the office at 401 N Main Street, Suite 300 in Historic Downtown Hendersonville.
Since its founding in 1982, Community Foundation of Henderson County has been helping people who care make lasting contributions to causes that matter. The Community Foundation accepts gifts from individuals, families, businesses and organizations to create a pool of charitable dollars from which grants are awarded to address community needs. This past fiscal year, CFHC donors provided charitable awards of more than $2.63 million to charitable causes. Learn more about Community Foundation of Henderson County at www.CFHCforever.org, at the Community Foundation’s Facebook and LinkedIn pages, and by calling (828) 697-6224.