Important Message to Donors

In December, both houses of Congress supported President Obama's tax bill, which extends the Bush-era tax cuts through 2012. The legislation maintains current income tax rates and the 15% rate for capital gains and dividends, establishes a lower 35% estate tax (with a $5 million per individual exemption and $10 million for couples), and provides for an Alternative Minimum Tax patch and a payroll tax cut for 2011. In addition, the plan calls for an extension of the expired 2009 tax provisions, including the IRA charitable rollover.

The IRA charitable rollover means eligible donors may make a direct gift to impact the issues you care most about. You may establish or add to a fund that contributes to The San Francisco Foundation’s endowment, or our Impact Fund.

If you have an IRA or a Roth IRA and are over age 70 1/2, you may transfer up to $100,000 directly from your IRA to a variety of funds at The San Francisco Foundation or directly to your favorite charitable organization. If you have not taken your 2010 IRA required minimum distribution, by using this option you likely will be able to reduce your income taxes with an IRA charitable rollover. Even if you already have taken your required IRA distribution for 2010, you still may find the IRA charitable rollover a very convenient way to make a gift because you can take your 2011 minimum distribution by January 31, 2011, and count it as a 2010 gift. Or, you can make a charitable gift of up to $100,000 with an IRA Charitable Rollover any time next year prior to December 31, 2011.

We encourage you to take advantage of the many philanthropic options available to you through The San Francisco Foundation. Donor advised funds are a simple and fast way to ensure immediate tax deductions for year-end, with unlimited time to decide which charitable causes and nonprofits you wish to support.

Thank you for your ongoing partnership and generosity, and we invite you to partner with The San Francisco Foundation as your trusted source to make the most impact with your giving. To learn more about how you can make a charitable impact with your IRA this year, or for guidance finding organizations that align with your passions, please contact our Philanthropic Services team at 415.733.8500 or donorservices@sff.org.