The Springfield Foundation can help turn your individual retirement accounts (IRAs) into tax-saving charitable gifts. New tax benefits allow more people to experience or enhance the joy of giving during their lifetimes. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, effective from Jan. 1, 2010 to Dec. 31, 2011, permits a rollover directly from an IRA to a qualified public charity.

Tax law extension. Through 2011, retirement assets may become a preferred charitable gift for seniors. IRA distributions to charity can now receive new tax advantages. Americans age 70½ and up can make tax-free IRA contributions to public charities such as your community foundation. Because this legislation comes so close to the end of 2010, qualified charitable contributions made from IRAs through January 31, 2011 can be applied for 2010 tax purposes.

By giving through your community foundation, you can use your gift to meet ever-changing community needs – including future needs that often cannot be anticipated at the time your gift is made. Your gift can target the causes and programs you care about most.

For years, estate planners have recommended that retirement assets may be the most tax-effective asset in larger estates to distribute to charity. These assets are not only vulnerable to heavy taxation as part of an estate but also can be taxed again as income in respect to a decedent on the tax returns of heirs.  Until recent legislation, there was a disincentive for retirees to give IRAs to charity during their lifetimes because withdrawals from IRAs were subject to income tax—even those given to charity.

The Springfield Foundation understands our community’s most pressing issues and can help you establish a fund to make an impact in areas of need or opportunity that are important to you. Here are three great ways to turn your IRA into community good:

Unrestricted Fund – Meeting ever-changing community needs.
Address a broad range of current and future needs. The Springfield Foundation evaluates all aspects of community well-being—arts and culture, community development, education, environment, health and human services—and awards strategic grants to high-impact projects and programs.

Field of Interest Fund – Connecting personal values to high-impact opportunities.
Target gifts to the cause most important to you: arts, health services, urban education, neighborhood revitalization, youth welfare and more. The Springfield Foundation awards grants to community organizations and programs addressing your special interest area.

There is so much more we'd like you to know. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact at 937.324.8773.