Dear[DONOR NAME]:

If you’re age 70½ or older, you need to take a minimum distribution from your IRA each year. Have you considered using this distribution for a charitable gift to support {ORGANIZATION}?

You may be able to take advantage of an important incentive for charitable giving. Since 2006, Congress has put in place a provision that allows individuals to make gifts from their IRA accounts to one or more charities, without first incurring income tax on the withdrawal. This means that you can direct that amount to {ORGANIZATION} withno federal income tax liability. This IRA Rollover may provide you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

Now, there are some details and restrictions:

  • You must be 70½ or older when you make your gift, and the gift must be made from an IRA – no other retirement plans (such as 401k, 403b or SEP accounts) qualify.
  • Your gift must come to us outright – it cannot be used to establish a life-income arrangement or support a donor-advised fund.
  • Although the distribution will be free from income tax, it will not generate an income tax charitable deduction.
  • There are other details which we’ll be happy to guide you through.

Unfortunately, this provision has not yet been renewed for 2015. However, it is expected that it will be renewed before year-end, retroactive to January 1, 2015. So what should you do? Many past donors are electing to complete an IRA Charitable Rollover regardless of whether the provision is renewed or not. You simply direct the administrator of your IRA to make the distribution to us. We will then wait to issue your acknowledgement, depending upon what happens with the law. If Congress extends the IRA Charitable Rollover (which is what we expect), we will issue you an acknowledgement for the Rollover. You do not include the withdrawal in your taxable income and you do not claim an income tax deduction. If they do not extend the Rollover, we will issue you a standard gift receipt, which you can then use to claim an income tax deduction against having to include the withdrawal amount in your taxable income. For most individuals, there is no difference except how you file your paperwork. But for {ORGANIZATION}, your gift makes a lasting and important difference!

If you have any questions, do not hesitate to reach out to us at [PHONE NUMBER AND EMAIL]. We thank you for your generosity, and for all you do for{ORGANIZATION}.

Sincerely,

[YOUR NAME]

P.S.: IRA administrators don’t always include the donor’s name on distribution checks. If you’re planning to make a distribution to us from your IRA, please let us know in advance so that we’ll be able to identify your gift. And please let us know if you want your gift used for a particular purpose. Thank you!