IRA Charitable Rollover Approved for 2008 and 2009
Sample letter: Send to IRA Custodian For Direct Gift to EFCA
Sample letter: Send to EFCA with Details and Goals for IRA Rollover Gift
The Emergency Economic Stabilization Act of 2008 was approved on October 3, 2008. This provides an excellent charitable planning opportunity for both 2008 and 2009. The act permits donors age 70 ½ or older to make a direct transfer to a charity, such as the Evangelical Free Church of America. The transfer may be up to $100,000 in one year. Section 408(d)(8)(A).
The EFCA Foundation will accept such IRA rollover transfers on behalf of any qualifying EFCA ministry. We are doing this as a service for our ministry friends who desire to support one or a combination of EFCA affiliates. For example, a donor who wishes to support their local Evangelical Free Church, their EFCA districts, and several EFCA missionaries may initiate one IRA transfer to the EFCA Foundation for processing. The EFCA Foundation will fully honor the stated charitable intentions, record the gift, prepare a receipt, and pass along the funds appropriately.
Naturally, the EFCA welcomes IRA Charitable Rollover Gifts in support of national and international ministries to meet our annual funding needs. You might consider supporting the EFCA National Ministries Fund or the International Ministries Fund (Global Vision Partners).
Key Provisions
- Donors must be age 70 ½ at the time the gift is made.
- Charitable Rollover Gifts must be made directly from an IRA Account to a Charity, such as the EFCA.
- IRA Rollover Gifts satisfy their required minimum distribution for those aged 70 ½.
- Total Gifts of $100,000 may be made in 2008. Additional gifts of up to $100,000 may be made in 2009.
- Spouses can gift $100,000 each year, too.
- Donors can support many charities and ministries at varying amounts as long as the total gifts do not exceed $100,000.
- IRA Rollover Gifts may NOT fund charitable gift annuities, charitable trusts, or donor advised funds.
- IRA Rollover Gifts may not support a private foundation or supporting organization (see section 509 (a)(3)).
How to initiate a transfer
1. Contact your IRA Custodian to initiate the transfer. Sample Form letter
2. Inform the EFCA Foundation. Sample Form letter
Questions?
EFCA Foundation: Please call Lanny L. Harris toll free at (800) 745-2202, ext 417 or email Lanny.Harris@efca.org
