American River College Foundation
American River College Foundation Office
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The ARC Foundation is a nonprofit auxiliary organization of the Los Rios Community College District, a California nonprofit corporation with a 501(c)(3) IRS designation. Our tax identification number is 94-2506591.
IRA Rollover to Charity
The charitable IRA rollover is a special provision allowing donations of assets from qualified Individual Retirement Accounts (IRA) that are made directly to public charities, including the American River College Foundation. While it has been available as a popular donation option since tax year 2006, in December, President Obama signed the legislation indefinitely extending the charitable IRA rollover, making it retroactive to Jan. 1, 2015, with no expiration date.
Why An IRA Rollover Is Such a Great Option
Under current law, withdrawals from traditional IRAs are taxed as income, even if they are immediately directed to a charity. The donor receives a tax deduction for his or her donation, but various other federal, and sometimes state, tax rules can prevent the deduction from fully offsetting this taxable income. As a result, many donors have chosen not to use IRA assets for lifetime gifts. The charitable IRA rollover eliminates this problem. What gifts qualify for a charitable IRA rollover?
- A gift that qualifies, technically termed a "qualified charitable distribution," is:
- Made by a donor age 70 1/2 or older
- Transferred from a traditional or Roth IRA directly to a permissible public charity, such as the American River College Foundation
- Completed during the applicable tax year
For further information, contact the ARC Foundation office or your tax professional. The IRS also had good information on this issue.