16 December 2015

Tax Extenders Makes Charitable Provisions Permanent

WASHINGTON, D.C.— The Alliance for Charitable Reform (ACR) issued the following statement upon the release of a legislative package of tax provisions commonly referred to as tax extenders.

“We are pleased that the year-end tax bill provides certainty to donors and charities by permanently extending three key charitable giving incentives. ACR and our partners in the sector actively engaged with lawmakers to urge them to include these provisions in the bill and we thank the members of Congress and their staff for listening,” said Sandra Swirski, executive director of ACR.

The three main charitable provisions made permanent in the tax extenders legislation are the IRA charitable rollover, the deduction for conservation easements, and the deduction for gifts of food inventory. All three provisions were included in the America Gives More Act earlier this year. Along with urging lawmakers to permanently extend the three charitable extenders, ACR and its partners pushed for a streamlined private foundation (PF) excise tax of one percent and an expanded IRA charitable rollover to allow distributions to donor-advised funds.

“While we hoped Congress would go further by taking the brakes off extraordinary donations by collapsing the current two-tier private foundation excise tax to a flat one percent, we are heartened by our progress over the course of this year, as reflected in this bill,” Swirski said.

“We are encouraged that Congress passed a permanent IRA charitable rollover – providing much-needed certainty to both donors and charities alike – in the year-end tax extenders bill. We would have liked to see an expansion of the rollover to include distributions to donor-advised funds, but a permanent IRA rollover is certainly a win for philanthropy,” added Joanne Florino, senior vice president for public policy at The Philanthropy Roundtable.

Nonprofit organizations engaged in a nationwide grassroots campaign the past several weeks urging lawmakers to include the charitable giving provisions in the tax extenders package.

“We’ve seen the charitable sector come together to encourage Congress to approve policy that will increase charitable giving to help those most in need. We thank our partners in the sector for reaching out to elected officials across the country to relay this important message,” Swirski said.