CHARITABLE IRA ROLLOVER

With the passage of the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010," Congress renewed special incentives to make charitable gifts. The law extended provisions for people 70½ years of age and older to make tax-free charitable gifts from their Individual Retirement Accounts. The extension of the IRA Qualified Charitable Distribution passed by Congress in 2010 is only in effect through December 31, 2011. With likely changes to our tax laws, 2011 may be your last chance to make a tax-free donation to FSS from your IRA.

If you qualify, with a traditional or a Roth IRA, you can transfer your contribution directly from your IRA administrator to the Foundation for Shamanic Studies (FSS). The transferred amount is then excluded from your taxable income. You may choose to make charitable distributions from your IRA in any amount up to $100,000. A couple with separate IRAs can each make gifts up to $100,000.

The transfer must be made directly from the IRA account to FSS, and must be for an outright gift. There is no income tax deduction for the transfer—the amount is simply not included in your income. You may not have taken your 2011 required IRA distribution; though even if you have taken your required IRA distribution, you still may find the IRA charitable rollover a very convenient way to make a year-end gift.

FSS has two sample letters you are welcome to use for your gift:

• The first is a letter you can send to the company managing your IRA, giving instructions on how to make the distribution directly to FSS. Download Word doc.
• The second is a letter you can use to let FSS know your gift is on its way so we can properly acknowledge it. Download Word doc.

For more information, please contact Susan Mokelke, Executive Director, at (415) 897-6416 or info@shamanism.org.