If you are 70½ years of age or older and have an Individual Retirement Account (IRA), you are required to take a minimum distribution from your account by the end of each year, which is subject to tax. However, thanks to special incentives passed by Congress on January 1, 2013 as part of the American Taxpayer Relief Act of 2012, if you transfer funds directly from your IRA to a charity by the end of January, 1) the transfer counts towards your minimum distribution for the 2012 tax year, 2) the transfer is tax-free, and 3) you will support a worthy charitable organization, such as the Folger Shakespeare Library. In addition, individuals who already took mandatory distributions in December 2012 can donate that money to a charitable organization by January 31 and the portion of the distribution that you donate will be tax-free.
What are the tax incentives?
The American Taxpayer Relief Act of 2012 passed on January 1 has extended the IRA Charitable Rollover through 2013. Originally passed in 2006 as part of the Pension Protection Act, the IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes.
In addition to the extension of IRA rollover gifts in place since 2006, Congress announced:
1) a special January extension, where IRA Rollover gifts to charity made through January 31, 2013 will be deemed for tax purposes to have been made in 2012,
2) a special retroactive provision for January where individuals who took a withdrawal in December 2012 may donate all or part of the amount they withdrew (up to $100,000) to charity before January 31, 2013, and it will be treated as if it were an IRA Rollover gift for 2012 (does not apply to withdrawals made before December 2012). Please inform the Folger you are doing this when you mail your check.
How do I make a gift to the Folger from my IRA?
1. Contact your plan provider to learn their procedures for an IRA Charitable Rollover.
2. Direct your plan provider to issue a check in the amount of your choice to “Folger Shakespeare Library” and send it to this address:
Folger Shakespeare Library
201 East Capitol Street, SE
Washington, DC 20003
3. Ask your plan provider to record your name and address as the donor of record in connection with this transfer.
4. Please be sure to contact us when you direct the rollover so that we can look for the check from your plan provider.
What will my gift support?
You can choose for your gift to provide unrestricted support to all areas of the Folger, or you can choose to designate your gift to a specific program or fund. These include, but are not limited to: the Folger Gala (pre-register for the April 11, 2013 Gala), the Readers’ Campaign, Folger Education, Folger Theatre, Folger Consort, the O.B. Hardison Poetry Series, Folger Acquisitions.
For more information, please contact:
Winnie Harrington Robinson, Senior Development Officer for Major Gifts
Federal Employer Tax ID #04-2103542: The Folger Shakespeare Library is administered by a Board of Governors under the auspices of Amherst College, founder Henry Clay Folger’s alma mater. Therefore, the Trustees of Amherst College are the official body under which the Folger is recognized by the Internal Revenue Service under sections 501(c)(3) and 509(a)(1) of the tax code.
Information contained in this website should not be considered legal, accounting, or other professional advice. Individuals should consult with their financial advisor.
Learn more about planned gift options.