The $700 billion bailout bill passed by the U.S. House of Representatives extends a provision allowing the tax-free rollover of individual retirement accounts for charitable purposes.
The provision originally was passed in 2006 and was extended through 2007, producing more than $130 million in charitable gifts over both years, says Steven Gunderson, president and CEO of the Council on Foundations in Washington, D.C.
The provision allows people over age 70-and-a-half to donate to charity up to $100,000 from their IRAs without having to count the funds as taxable income.
The latest provision extends the rollover through 2009.
The Council on Foundations recommends expansion of the rollover provision to include contributions to donor-advised funds, supporting organizations and charitable foundations.