We believe this legislation offers a benefit that might best be described as a “niche” giving opportunity that will appeal to a limited number of seniors among a typical nonprofit’s constituency. 

One client received gifts of $100,000 and $16,000 within days of the bill’s passage. In both cases, the donors had more than adequate resources to fund their retirement and saw this as a tax-efficient way to complete a gift. Keep in mind that many retired persons do not have large percentages of their assets invested in stocks, and much of the value of their bonds and similar investments are still intact. According to the National Committee on Planned Giving, the average IRA rollover gift in 2006 and 2007 was $16,197 and the median distribution was $4,378. See www.ncpg.org/gov_relations.

Because of the relatively limited appeal of this provision, it is important to be very careful in the way IRA rollover giving is presented, and to emphasize how this option can allow people to make gifts they otherwise would be making at lower after-tax cost. If possible, this information should be targeted to older donors who have the capability to make gifts in this way. The mail will be the most effective way to reach this group. Pew/Internet studies (see www.pewinternet.org) reveal that while many seniors (as defined as 55 and older) are active online, only a small percentage of persons over 70 are active online.

The challenge is finding those persons who are the “needles in the haystack” who can and will respond favorably to this opportunity. If there are 5,000 persons over 70½ in a given constituency and 1% can give in this way, there is potential for 50 gifts. Few have the time or resources to personally contact 5,000 persons in order to locate the 50 persons who may be able to make gifts this fall from their IRA.

To assist in fund development efforts, Sharpe has prepared special materials designed to inform donors about the benefits of this giving opportunity, including our brochure, “The Charitable IRA”.* For more information, click on the links below.

*For all orders of 1,000 or more brochures, you will receive the Sharpe Charitable IRA marketing bundle, which consists of cover letter copy, PDFs of an ad and a postcard, and Web/article copy detailing this special giving opportunity.

"The Charitable IRA" Order Form [ PDF ]

New law extends 2006 IRA Giving Provision for 2008 and 2009 [PDF]

Detailed explanation of the PPA Bill [ PDF ]

The Sharpe Charitable IRA marketing bundle (with orders of 1,000 or more brochures) includes:

• Cover letter copy (to be received after you order)
  
  
• Web/article copy (to be received after you order)
  
  
• Ad # 1 [PDF] (print-quality file to be received after you order)
  
  
• Postcard [PDF] (print-quality file to be received after you order)