IRA Charitable Rollovers

Your IRA assets can help your favorite causes

People aged 70½ and older have a special tax-free opportunity to make a meaningful charitable gift through an IRA Charitable Rollover as part of the required minimum distribution. The Sacramento Region Community Foundation can help make the process easy.

If you are at least 70½, the law allows you to transfer up to $100,000 of your IRA assets each year directly to a qualified public charity such as the Sacramento Region Community Foundation.

Since the assets you transfer will not be recognized as income, they will not trigger federal income taxes today or estate tax in the future. If you are married, you and your spouse can each transfer up to $100,000 per year.

People aged 70½ and older have a special taxfree opportunity to make a meaningful charitable gift annually with an IRA charitable rollover.

It's important to note that Donor Advised Funds are currently unable to receive these gifts. We often work with donors who instead opt to direct an IRA Charitable Rollover to support one or more of the Foundation's Nonprofit Agency Fund(s) or to establish a new charitable fund (not a Donor Advised Fund) in order to put their IRA assets to philanthropic use. Depending on your giving goals, one of these fund types may be the right solution for you:

• If you already have close ties to specific nonprofits you'd like to continue supporting, a Designated Fund may best suit your needs.
• If there's a general area of interest that you'd like to support as needs evolve, you might consider a Field of Interest Fund.
• If you'd like to support students who are working to achieve their educational goals, a Scholarship Fund may be best for you.

It is not unusual for donors who give through the Foundation to have two funds: a Donor Advised Fund, which they grow with a variety of assets, and a second charitable fund (such as a Designated Fund), to which they direct assets from their IRAs as tax-free gifts.

You are also able to support our region through a transfer to our Building Equitable Communities Fund, which supports local efforts to make the greater Sacramento area more vibrant and equitable for all. 

Interested in learning how you can leverage your IRA required minimum distributions for philanthropic ends? We are happy to help. Please contact us to learn more.

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The information provided here is general and educational in nature, and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific situation.