The Pittsburgh Foundation

Tax Update: IRA charitable rollovers made permanent

PITTSBURGH, Dec. 22, 2015 –Congress has approved and President Obama has signed the PATH Act making the Individual Retirement Account Charitable Rollover and two other charitable giving incentives permanent law.

The tax package did not expand the permanency to donor advised funds, but giving the Charitable Rollover that designation is a tremendous victory for community foundation philanthropy and for our individual donors. The Pittsburgh Foundation's staff members were very involved in advocacy efforts to bring about passage.

What it means to you: This giving option allows donors to make distributions from IRAs directly to charity and also receive tax savings. 

  • The advantage of the rollover is that the distribution is not recognized as taxable income to the individual.
  • IRA owners who are 70-1/2 or older may direct up to $100,000 from an IRA directly to qualifying charities.
  • The Pittsburgh Foundation and the Community Foundation of Westmoreland County are experienced in enabling this option and can make it happen in a 48-hour time frame. 

Using the Rollover option at The Pittsburgh Foundation or the Community Foundation of Westmoreland County:

  • You can create or add to an established scholarship, designated, or field-of-interest fund.
  • The provision does not include contributions to donor-advised funds, private foundations, or supporting organizations.
  • Even if you already have a current donor advised fund, you can establish a fund that is designated to organizations of your choice, or you can create a scholarship fund for deserving students.

How to use the Rollover option to serve the community and your tax situation: Make the gift by the end of this year in order to qualify for a deduction on 2015 taxes.

Donors wishing to make a Charitable Rollover gift must act before the end of this year to qualify for the tax deduction on this year’s income. If you would like to take advantage of this giving option, please contact your donor services representative, or contact our team generally at 412-394-2653.

For more information, contact Yvonne Maher, senior vice president, Development and Donor Services at 412-394-2653, or email: mahery@pghfdn.org.