Group Praises Bill Expanding Plan Rollover Contributions 

October 26, 2020

The Honorable Richard Neal, Chair
Committee on Ways and Means
U.S. House of Representatives
Washington, D.C. 20515

The Honorable Kevin Brady, Ranking Member
Committee on Ways and Means
U.S. House of Representatives
Washington, DC 20515

Dear Chairman Neal and Ranking Member Brady,

Independent Sector is a national membership organization that brings together a diverse set of nonprofits, foundations, and corporations to advance the common good. On behalf of that entire membership, thank you for including provisions that will boost charitable giving in your Securing a Strong Retirement Act of 2020, introduced this week. These provisions could unlock much-needed, additional funds to help serve communities nationwide at a time when charities face economic crisis and skyrocketing demand.

As you may know, Independent Sector worked with its members for over a decade in support of the IRA charitable rollover provision, which was eventually made permanent in the PATH Act as part of Public Law 114-113. We are grateful that your legislation builds on the success of the IRA charitable rollover in two key ways.

First, it would expand the types of retirement accounts eligible to make charitable rollover contributions to include critical workplace retirement accounts such as 401(k), 403(b), and 457 plans, as well as plans for small employers or the self-employed. Indeed, it is particularly heartening to envision retired nonprofit employees choosing to contribute their financial resources to their community after dedicating their career in a similar manner.

Next, we are grateful that your legislation includes modified provisions of the Legacy IRA Act, which would enable seniors to make tax-free contributions from their individual retirement accounts to charities through life-income plans. With many Americans unable to afford to give away their retirement income during their lifetime, this would give prospective donors one more critical way to invest in the common good in a way that works for them.

Every day, charitable nonprofit organizations provide educational and economic opportunities for families in need; work to alleviate poverty and suffering at home and abroad; assist victims of disaster; enhance the cultural and spiritual development of individuals and communities; facilitate scientific advances; and foster worldwide appreciation for the democratic values of justice and individual liberty that are part of the American character. Their work is vital to a healthy civil society in America and around the globe and deserves our support. These provisions of the Securing a Strong Retirement Act of 2020 are a step in that direction, and we look forward to assisting you with their enactment.

Sincerely,

Daniel J. Cardinali
President and CEO
Independent Sector
Washington, DC