ETCF Responds to Signing of Charitable Provisions Bill
Posted/updated on: December 23, 2014 at 1:56 am
TYLER – Friday afternoon President Obama signed into law a tax extenders package which includes time-sensitive charitable opportunities for the end of the year, and the Tyler-based East Texas Communities Foundation (ETCF) is responding to the news. The bill, HR 5771, known as the Tax Increase Prevention Act of 2014, reinstates for 2014 dozens of expired tax provisions, including the IRA charitable rollover and enhanced deductions for donating land conservation easements and food inventory.
According to an ETCF news release, while it may be difficult to donate land or food inventory for charitable use with such a small window of opportunity, there still may be time for thoughtful donors to make charitable distributions from their IRAs before the December 31, 2014 deadline. That means donors have seven working days, or six and a half days due to the number of offices that will close early on Christmas Eve, to instruct their IRA administrator to make a qualifying charitable distribution to take advantage of this opportunity.
East Texans age 70 1/2 and older can utilize this tax provision by transferring up to $100,000 from their IRA to a qualified public charity. The transfer will be made free of federal income tax and the gift qualifies for the donor’s 2014 required minimum distribution (RMD).
“While it is disappointing that Congress has passed this legislation in late December and left little time for people to use these charitable provisions, it is a very helpful option for donors who are trying to be good stewards of their charitable resources.” said Kyle Penney, East Texas Communities Foundation president. “For the past eight years, a number of donors in our area have taken advantage of the IRS Charitable Rollover to benefit area charities.”
Penney says ETCF can help donors execute the transfers and choose from several charitable fund options for their gift, including the ongoing Shine Your Light Community Campaign. Donor Advised Funds do not qualify for tax-free IRA transfers, but six other types of funds which qualify are available through ETCF. Qualifying fund types include scholarship funds, nonprofit endowment funds, donor designated funds, and other several other funds. You can go to http://www.etcf.org to see all of those fund types explained in more detail.
Penney says his staff can also help interested donors understand what they need to do to make a direct contribution to their favorite charity. “We enjoy helping donors be good stewards as they support their favorite charities, and that doesn’t always mean they need to set up a charitable fund at ETCF,” said Penney. “This really is a limited-time offer: the window is open now, but it will close in less than two weeks, so we want to be available to answer any questions donors may have about the process. Of course we are always hopeful that the next Congress will be able to make these provisions permanent so people will have more time to plan their charitable giving, but in the meantime, we have to take action now with the provisions that are in place for 2014.” You can contact the staff at ETCF at 903-533-0208 for more details.
According to the news release, East Texas Communities Foundation supports philanthropy by offering simple ways for donors to achieve their long-term charitable goals. ETCF is a non-profit corporation, established in 1989, which serves 32 East Texas counties.
