Using Your IRA to Make a Year-End Charitable Gift

Waldorf, MD – If by Dec. 31, 2013 you will be 70 1/2 and older, you may want to consider making a gift to a
charitable fund with a gift directly from your traditional or Roth Individual Retirement Account (IRA) without
incurring income taxes today or estate taxes in the future. Called the IRA Charitable Rollover, the provision
allows eligible individuals to “roll over” up to $100,000 from an IRA directly to a charitable fund. The
provision is scheduled to end Dec. 31, 2013.

What the American Taxpayer Relief Act of 2012 Means for Charitable Giving
On Jan. 1, Congress passed the American Taxpayer Relief Act of 2012 that temporarily averted the “fiscal cliff”
and includes a number of provisions that affect charitable giving. Included in the legislation, was an extension
of the IRA charitable rollover provision through Dec. 31, 2013. Below are more details about this provision and
other charitable implications of this new legislation.

IRA Charitable Rollover
The IRA charitable rollover allows tax-free distributions of up to $100,000 per taxpayer, per taxable year to an
eligible charitable organization such as the Community Foundation of Southern Maryland from an IRA held by
individuals age 70 1/2 or older. Because the distribution goes directly to a qualified charity, the amount will not
be counted as income and will not be subject to income tax.

How to make an IRA charitable rollover
It’s easy! Notify your IRA administrator or trustee to make the contribution directly to an existing endowment
fund at the Community Foundation or you can create a new endowment fund. Either way, contact the
Community Foundation at 240-216-4483 (GIVE) or send an email to gretchen@cfsomd.org and we can set up
a Fund in 15 minutes and you receive an immediate tax deduction.

“It is a win-win—for people who would rather give to charity than pay taxes and the nonprofit organizations
they choose to support,” said Gretchen Hardman, Executive Director of the Community Foundation of Southern
Maryland. “This really is a limited-time offer: the window is open now until December 31, 2013” said
Hardman. “For anyone interested in establishing a permanent legacy in this community, this is the opportunity
of a lifetime to make the gift of a lifetime.”

Through philanthropic services, strategic grant making and community leadership, the Community Foundation
of Southern Maryland helps people support the causes they care about, now and for generations to come.

SIDEBAR
Gift of a Lifetime: Shopping for Charity
These days, having more retirement money than you need is a great problem to have, and one that’s now easier
to solve. But generous IRA donors still face multiple options for their gifts: Support the entire community?
Underwrite a special cause? Shore up a favorite charity? Here are our top charitable fund picks at the
Community Foundation of Southern Maryland.

Support Community Foundation of Southern Maryland: Capacity Building FundFunding for this Fund is vital to our growth. Funding for our operating is what all our other funds and programs rely on. It is the
engine that makes the Foundation run, the driving force behind all our efforts. Operating gifts support our infrastructure, secure our future, and make new programs possible. Gifts given for operations today help sustain the Community Foundation, giving us the power to make a difference tomorrow, and beyond. It allows us to serve more donors, build more funds and to provide more grants to make our community the best place to live and give.

Support Community Foundation of Southern Maryland: Community Grant Fund — Meeting everchanging community needs — IRA transfers to the Community Grant Fund address a broad range of current and future needs. Community Foundation of Southern Maryland evaluates all aspects of community well-being —arts and culture, education and scholarships, environment, general community improvements, health and
wellness and youth initiatives—and awards strategic grants to select projects and programs.

For people who care deeply about this community and its people, this fund is an excellent way to address our
most pressing needs, today and tomorrow.

Field of Interest Fund — Connecting personal values to high-impact opportunities.
IRA transfers to Field of Interest Funds allow donors to target gifts to causes important to them: arts and
historic heritage, education and scholarships, environment, housing, transportation, recreation, health, youth
initiatives and more. Community Foundation of Southern Maryland awards grants to community organizations
and programs addressing the donor’s specific interest area.

For those who are particularly passionate about a single cause, Field of Interest Funds provide strategic,
lasting support—even as needs change over time.

Designated Fund — Helping local organizations sustain and grow.
IRA transfers to Designated Funds allow donors to support the good work of a specific nonprofit organization—
a senior center, hospice house, arts organization or any qualifying nonprofit charitable organization.
For people who want to help secure the future of their favorite charities, our endowed Designated Funds give
nonprofits a steady stream of income, plus planned giving and investment management services.

For more information about the Community Foundation call 240-670-4483(GIVE), go to www.somdgiving.org
or send an email to Gretchen Hardman, gretchen@cfsomd.org.

Comments are closed, but trackbacks and pingbacks are open.