December 22, 2015

IRA Charitable Rollover Passed Into Permanent Law

On December 18, 2015, the Protecting Americans from Tax Hikes (PATH) Act of 2015, which includes a provision that makes the previously expired IRA Charitable Rollover a permanent part of the tax code retroactive to January 1, 2015, was passed into permanent law. Thanks to this legislation, waiting for annual approval of this provision that was first enacted into law in 2006 no longer will be necessary.

Individuals who are at least 70-1/2 years old may transfer up to $100,000 from their IRA to a qualified public charity. The transfer will be made free of federal income tax, and the gift qualifies for the 2015 required minimum distribution.

Please be aware that the legislation specifically states that IRA assets are not able to be transferred into Donor-Advised Funds (which we interpret to also include Charitable Checking Accounts℠ and supporting organizations) and receive this benefit. However, individuals may transfer IRA assets to The Dayton Foundation for a new or existing Designated, Field-of-Interest, Scholarship or Unrestricted Fund which basically is any fund that eliminates the “Advisor” feature, and have the assets be eligible for the deduction.

Keep in mind that it often takes IRA administrators several weeks to process rollover transactions, so immediate action is required to ensure the gift is received by December 31, 2015, to be eligible for the 2015 tax year. Please contact Joe Baldasare of the Foundation’s Development department at (937) 222-0410 if you have any questions.

To learn more about the types of funds available through the Foundation, click here.

About The Dayton Foundation

Established in 1921, The Dayton Foundation is the regional community foundation for Greater Dayton that helps people to help others. The Foundation manages more than 3,300 charitable funds which have provided over 290,000 grants totaling three-quarters of a billion dollars to nonprofits over its 94-year history. More information about The Dayton Foundation, visit our website at or follow the Foundation on Facebook, Twitter or LinkedIn.

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File date: 06.16.16


Debbie Wright

“The Dayton Foundation has been wonderful to work with. Their communication with donors is strong, and they really care about our scholarship fund.” – Debbie Wright, Dayton Foundation donor since 2006

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