Special Tax Incentive for IRA Gifts
Donors aged 70½ and older can make direct distributions of up to $100,000 per year from their IRAs and ROTH IRAs to The Nature Conservancy, without incurring income tax on the withdrawal. This is a significant incentive that removes the tax penalty for some donors who want to use their IRAs to fund a charitable gift. The current provision is retroactive to January 1, 2015, and does not expire.
What You Should Know:
- Gifts must be outright — the donor cannot use the distribution to fund a life-income gift such as a charitable gift annuity. Gifts can only be made from a traditional or Roth IRA — other types of retirement plans are not covered by the law.
- If a donor has retirement assets in a 401(k), 403(b) etc., he or she must first roll those funds into an IRA, and then you can direct the IRA provider to transfer the funds from the IRA directly to The Nature Conservancy.
- A donor will receive no charitable income tax deduction for the distribution from the IRA. However, gifts from an IRA will not count toward the deduction limitation* for charitable gifts. This means that a donor whose gifts from non-IRA assets have reached his deduction limitation for the year can make an additional gift from his IRA with no penalty.
- Total charitable IRA distributions to The Nature Conservancy, plus any other charity the donor benefits, cannot exceed $100,000 per year.
How it Works:
- Donors aged 70½ and older have the opportunity to direct lifetime distributions from their IRAs and ROTH IRAs to The Nature Conservancy. Distributions to The Nature Conservancy and other charitable beneficiaries can total $100,000 and must be made outright — they cannot fund a life-income gift.
- Donors younger than 70½ can make a withdrawal from their IRA or other type of retirement plan, pay income tax on the withdrawal, and donate the proceeds to The Nature Conservancy. These gifts can be made outright or can fund a life-income gift and will generate a charitable deduction for the donor.
Please note that The Nature Conservancy cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.
Information that may interest you ...
Learn more about gifts of assets.
You can name the Conservancy as a beneficiary of your retirement plan. Learn more.
Try our Legacy Planner to see what gift is right for you.
You can protect forests and other natural places by making a planned gift with The Nature Conservancy. Contact us today.