Don’t wait—get the word out about the IRA Rollover before it’s too late

The annual uncertainty of the continued existence of the IRA rollover presents an excellent “double whammy” marketing opportunity to use with donors this fall: You’ve got to take your required minimum distribution before the end of the year—and this may be the last year to take advantage of the rollover strategy.

The Required Minimum Distribution
Those over 70½ years of age may be required to take annual distributions from their IRAs—even if they don’t need them for living expenses. An alternative that allows a donor to avoid the income tax on this distribution is to make a direct transfer from an IRA to charity. The gift counts against the minimum distribution requirement; but since it is going directly to charity, it is not included in gross income and subject to tax.

Don’t Wait—Get the Word Out Now
Tax-savvy donors tend to engage in year-end planning in the early fall, so now is high time to get the rollover pitch under way. Waiting for the holiday season often is too late because many retirees will have already taken their required distribution by then.

An Expiring Opportunity
The IRA rollover was first approved in 2006 but each year faces uncertainty about whether it will be approved by Congress. Approval for 2012 actually wasn’t passed until Jan. 2 of this year—requiring special provisions so that donors could make rollover contributions during January and have them count for 2012.

The rollover is set to expire again on Dec. 31 unless Congress takes further action. So this year may be the last opportunity for donors to garner the rollover benefits.

Easy to Qualify
It’s easy to explain to donors how to qualify for the IRA rollover:
  • The donor must be 70½ or older at the time of the gift.
  • The transfer must go directly from the IRA administrator to your organization.
  • Total IRA gifts for the year cannot exceed $100,000.
  • The gift must be outright, with no benefits to the donor.

The IRA rollover should be marketed every chance you get between now and the end of the year. You can order samples of Pentera marketing postcards for the IRA Rollover at www.pentera.com/IRArolloverinformation