IRA Charitable Rollover Giving

On Dec. 18, 2015 legislation was passed and signed into law permanently – the provision allowing friends of Schooner Adventure to make tax-free charitable withdrawals from IRAs.

The law permits donors to transfer up to $100,000 per year from their individual retirement account to Gloucester Adventure, Inc. (or another qualified charity) without being required to report it as taxable income for federal tax purposes, if:

• The gift is made directly to a charity.
• You are at least 70 and 1/2 years of age at the time of the gift.
• The gift was made after Dec. 31, 2014; this allows IRA distributions made this year to qualify if you act quickly.
• These gifts can be used to satisfy existing pledges, provide current operating funds, support restoration and preservation projects, or establish endowments.

The charitable gift can be used to meet your IRA minimum distribution requirement for the year, allowing you to avoid taxable income entirely. There are some limits:

• The gift cannot be made to a donor-advised fund, supporting organization or private foundation, only a public charity like Gloucester Adventure, Inc.
• You can receive no financial benefit in exchange for the gift, which rules out transfers for gift annuities, charitable remainder trusts and pooled income funds.
• The gift must come from an IRA, not a 401(k), Keogh or other type of retirement account.
• For the first time, the IRA Rollover has no “sunset” provision, so it can be used in 2016 and in future years as well. Please speak to your advisers about how to make this part of your long-term charitable plans.

To take advantage of the Rollover, please speak to your IRA custodian, as these transfers cannot be initiated by charities. Our Development office will be happy to help your custodian with transfer arrangements. For more information contact Director of Development Betsy Hoffman at 978-281-8079 or bhoffman@schooner-adventure.org