Take Advantage of this Giving Opportunity:

Use Your Individual Retirement Account (IRA) and Make a Gift to American Jewish Committee (AJC) in 2017

You can make a meaningful impact by supporting AJC's leading global Jewish advocacy through an IRA Charitable Rollover contribution. The IRA Charitable Rollover provision is a tax law that allows individuals age 70½ and older to make charitable gifts directly from their traditional IRA accounts to a qualified charity like AJC and the withdrawals from the IRAs will not be included in their gross income for tax purposes.

As you plan your minimum required distributions for this year, consider using your IRA funds as your charitable gift to AJC or for paying your existing pledge.

What you need to know about the IRA Charitable Rollover

  • You and/ or your spouse must be age 70½ or older when you make the gift from your IRAs to AJC. Each of you can transfer up to $100,000 to AJC from your IRAs per year.
  • Transfers of funds from your traditional IRA account must be made directly by your IRA administrator/custodian to AJC. Please note that any funds from your IRA that are personally withdrawn by you and then contributed to AJC will NOT qualify as an IRA charitable rollover contribution and will be taxable income to you.
  • You may not make gifts to AJC from a 401k, 403b, SEP and other plans; they do not qualify as IRA charitable rollovers. You can make an IRA Charitable Rollover to AJC from a Roth IRA; however, it might not be as advantageous as using your traditional IRA for such gifts.
  • The amount of the gift to AJC from your IRA counts towards your required minimum distribution (RMD) from your IRA for the year the gift is made.
  • IRA Charitable Rollover contributions to AJC must be made outright and cannot fund life-income arrangements such as charitable remainder trusts and charitable gift annuities.
  • The IRA Charitable Rollover distribution is NOT included in your gross income for federal income tax purposes on your IRS Form 1040; however, the gift to AJC from your IRA will not be eligible for a charitable tax deduction.

You might consider using the IRA charitable rollover gift if your total charitable gifts for this tax year already equal 50% of your adjusted gross income, or if you do not itemize deductions, or you do not need the additional income necessitated by your minimum required distribution.

Remember: It is important to consult your individual tax and/or financial advisors for their professional advice regarding the tax consequences of any gifts you intend to make from your IRA accounts.

For example: Sarah is concerned with the rising anti-Semitism and the campaign to delegitimize Israel and her people. She knows there is no better global Jewish advocate for the Jewish people than AJC. Sarah has $500,000 in an IRA and decided that she wanted to contribute $25,000 to AJC before December 31, 2017. She authorized the administrator/custodian of her IRA to transfer $25,000 directly to AJC as her gift. Her $25,000 gift from her IRA distributed to AJC will not be taxable as income to her in 2017 and will be counted toward her annual minimum required distribution from her IRA.

How to Process Your IRA Charitable Rollover

Please contact AJC National Director of Planned Giving, Debra Rubenstein for a sample letter and transfer instructions that you can send to your IRA administrator/custodian to initiate your IRA Rollover contribution to AJC. Kindly make sure that you notify us when you direct the rollover transfer, so we can identify your gift. Debra can be reached at 877.252.2040 or by email at rubensteind@ajc.org.