Cantwell Introduces Bipartisan Legislation to Unlock More Charitable Giving Opportunities

Cantwell Introduces Bipartisan Legislation to Unlock More Charitable Giving Opportunities

Commonsense fix would boost support for charities across Washington and nationwide

WASHINGTON, D.C. - U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Finance Committee, joined Senators Todd Young (R-IN), Michael Bennet (D-CO), James Lankford (R-OK), and Catherine Cortez Masto (D-NV) in introducing the IRA Charitable Rollover Facilitation and Enhancement Act, legislation that would amend the tax code to support more charitable giving options for older Americans.

Under current law, American taxpayers age 70½ or older are allowed to make Qualified Charitable Distributions (QCDs) from an individual retirement account (IRA) to a qualifying 501(c)(3) charity without counting the distribution as taxable income. The law, however, does not allow these older Americans to make QCDs to a donor-advised fund (DAF) - an increasingly popular charitable giving account managed by a public charity. This has created an obstacle for donors who want to simplify and coordinate their charitable giving by supporting multiple charities with a single gift. The IRA Charitable Rollover Facilitation and Enhancement Act would remove this unnecessary barrier to generosity by amending the tax code to allow charitable rollovers from IRAs to DAFs.

"Community foundations in Washington state do incredible work supporting multiple, community-based organizations-food banks, child care centers, housing programs, health clinics, and environmental groups-many of which rely heavily on local philanthropy. This bill will make it easier for donors who want to use some of their retirement assets to help these smaller, local nonprofits that often get overlooked when gifting becomes complicated," said Sen. Cantwell.

The IRA Charitable Rollover Facilitation and Enhancement Act is supported by the American Endowment Foundation, Community Foundation Awareness Initiative, Council on Foundations, National Association of Charitable Gift Planners, National Philanthropic Trust, and Philanthropy Roundtable.

A full list of supportive organizations and statements can be found HERE.

U.S. Representatives Adrian Smith (R-NE) and Jimmy Panetta (D-CA) introduced companion legislation in the House last year.

Full text of the IRA Charitable Rollover Facilitation and Enhancement Act can be found HERE.

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