Special Tax Incentive for IRA Gifts
New, temporary legislation allows donors aged 70½ and older to direct distributions of up to $100,000 per year from their IRAs and ROTH IRAs to The Nature Conservancy, without incurring income tax on the withdrawal. This is a significant incentive that removes the tax penalty for some donors who want to use their IRAs to fund a charitable gift.

The provision is in effect for the 2009 tax year so gifts must be made by December 31 in order to take advantage of the special legislation. Gifts made under it must be outright — the donor cannot use the distribution to fund a life-income gift such as a charitable gift annuity. Gifts can only be made from a traditional or Roth IRA — other types of retirement plans are not covered by the law.

The donor will receive no charitable income tax deduction for the distribution from the IRA. However, gifts from an IRA will not count toward the deduction limitation* for charitable gifts. This means that a donor whose gifts from non-IRA assets have reached his deduction limitation for the year can make an additional gift from his IRA with no penalty.

Total charitable IRA distributions, to The Nature Conservancy plus any other charity the donor benefits, cannot exceed $100,000 per year. Learn more about how you can put your IRA to work for Nature.

Younger Donors Can Also Make Lifetime Gifts
Donors under age 70½ who are not covered by the new legislation described above can make a withdrawal from their retirement accounts and donate the proceeds to The Nature Conservancy. The withdrawal will be included in their taxable income for the year, but they will receive an offsetting charitable deduction for their contribution. These donors can also use their retirement plan withdrawals to create a gift plan that will pay them lifetime income, such as a charitable gift annuity.

*Important Considerations: Donors may be able to deduct contributions of cash up to 50 percent of their adjusted gross income (AGI) in any tax year (any excess may be deducted in the next of the succeeding five tax years where contributions are less than the 50 percent limit); they may be able to deduct contributions of appreciated property, like stock, up to 30 percent of AGI. The temporary legislation exempts distributions from IRAs made by donors aged 70½ and older from such limitations. Please note that The Nature Conservancy cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.