Schock Authors Bill to Permanently Extend Charitable Giving Provision

H.R. 4619 Amends Tax Code to Foster Certainty for Charities, Giving Opportunities for Taxpayers

May 15, 2014

Washington, D.C. — Congressman Aaron Schock (IL-18) has introduced legislation to create certainty for taxpayers and the charitable organizations that depend on tax-free distributions from individual retirement accounts (IRA) as a component of their annual fundraising efforts. Numerous national and Illinois-based non-profit organizations have already signaled early support for the measure, which is now under consideration by the House Committee on Ways and Means where Rep. Schock is a member.

“The American people and more than one million American non-profit organizations shouldn’t have to wait for Congress to finish comprehensive tax reform before they can make important decisions about charitable giving,” Schock said.

“Last year, total charitable giving in the United States passed $316 billion, with individual gifts comprising 72 percent of the total. As a nation, we must continue to incentivize charitable giving, without which the burden of meeting many community needs would overwhelm federal, state and local budgets. This bipartisan measure provides certainty for charities and increased opportunities for donors. I anticipate broad support and swift passage of this important tax provision.”

The bill, H.R. 4619, will make permanent a temporary tax provision that has offered American taxpayers ages 70 ½ and older to donate up to $100,000 from their IRAs and Roth IRAs without having to treat the withdrawals as taxable income. The provision was previously extended for 2012 and 2013 as part of the American Taxpayer Relief Act of 2012.

Rep. Earl Blumenauer (OR-03) is an original co-sponsor of the bill. Reps. Mike Kelly (PA-03), Todd Young (IN-09) and Pat Tiberi (OH-12) are also early co-sponsors.

“H.R. 4619 is a much-needed step that will enable donors to direct critical resources to philanthropic organizations engaged in strengthening communities and serving our neighbors in need. We thank Congressman Schock for leading the effort to pass this important legislation”

–Mark Roberts, CEO of the Community Foundation of Central Illinois

“The IRA Rollover is a critical component of tax policy that reflects America’s long-standing tradition of charitable giving. Yet uncertainty created by the need for Congress to continually renew this provision undermines its effectiveness in driving donations. We applaud Congressman Schock for introducing H.R. 4619 to make this important incentive permanent. In the U.S., private charities like United Way work to improve the lives of millions of children and families. Congressman Schock should be commended for fighting to enable the work of charities and helping to build our capacity to advance the common good and improve lives.”

–Brian A. Gallagher, President and CEO, United Way Worldwide

“We strongly support the legislation Congressman Schock has introduced to make the IRA charitable rollover permanent. This is a much-needed initial step to help donors get critical resources to support the work of philanthropic organizations. We also appreciate Congressman Schock’s continued efforts to build on this legislation by providing donors additional flexibility to donate their assets to a full range of organizations engaged in strengthening our communities and serving our neighbors in need.”

–Joshua Gibb, Executive Director, Galesburg Community Foundation

“We provide after-school and summer educational and fitness activities to over 400 at-risk Illinois youth every year. Individual giving is the most sustainable source of income for our organization and accounts for one-third of our budget.  If the charitable IRA rollover is made permanent, we can more effectively serve and impact the lives of youth who need us most. We thank Congressman Schock for his efforts to create a more sustainable environment for social service organizations.”

–Grant Anderson, Executive Director, Boys & Girls Club of Bloomington-Normal

“With decreasing state and federal aid to communities, especially in rural Illinois, we feel compelled to take care of our own. Making the charitable IRA rollover permanent and removing impediments under current law will expand philanthropy’s capacity to help rural communities help themselves. H.R. 4619 is an important advance and will have a very real and positive impact. Congressman Schock is to be commended for his critical leadership in expanding the ways that philanthropy can serve.”

–Julianne Buck, President, Alliance of Illinois Community Foundations

and CEO, Community Foundation of Grundy County