[Congressional Record Volume 155, Number 59 (Wednesday, April 22, 2009)]
[Senate]
[Pages S4579-S4581]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Ms. Snowe, Mr. Kerry, Mr. Schumer, 
        Mrs. Lincoln, Ms. Stabenow, Mr. Voinovich, Mr. Burr, Mr. Pryor, 
        Mr. Leahy, and Mr. Levin):
  S. 864. A bill to amend the Internal Revenue Code of 1986 to expand 
tax-free distributions from individual retirement accounts for 
charitable purposes; to the Committee on Finance.
  Mr. DORGAN. Mr. President, the Nation's charitable community has been 
damaged from the harsh realties of the economic downturn. Dwindling 
contributions and devastating market losses have hit many charities and 
philanthropic activities, and the trusts and funds that support them.
  Experts at the Congressional Research Service suggest that charitable 
assets could have lost more than $400 billion in value from the stock 
market's peak in October 2007. Some foundations with narrow investment 
portfolios have lost close to 50 percent since that time. Donations are 
down at many charities across the country.
  Yet, the work of these organizations to assist low-income families 
and individuals facing financial difficulty is more important than 
ever. The economy is in trouble--20,000 jobs are lost every day and the 
unemployment rate is approaching 9 percent. It is not surprising that 
many charities are seeing an increase in those seeking help for food, 
rent or mortgage payments or utility bills, along with an increase in 
the number of working poor seeking services, more generally.
  The Senate recently sent a strong message to our charitable community 
that we understand their financial challenges and will do what it can 
to help. During consideration of the fiscal year 2010 Budget 
Resolution, the Senate unanimously passed an amendment I authored with 
Senator Snowe that gives a green light to pass legislation to extend 
and enhance the soon-to-expire charitable individual retirement 
account, IRA, rollover tool that charities have used to help raise 
money. This tax incentive allows individuals to make gifts to charities 
from their IRAs without suffering adverse tax consequences.
  Today, I am joined by Senator Snowe and 9 of our colleagues in 
introducing the Public Good IRA Rollover Act, which would permanently 
extend and expand the tax-free charitable IRA rollover incentive.
  Congress added a provision to the Tax Code in 2006 that permitted 
taxpayers age 70\1/2\ or older to give money

[[Page S4580]]

directly from their IRAs to charities, tax-free. This provision is 
modeled after an approach for direct charitable gifts that we have 
advanced in the Public Good IRA Rollover Act.
  The results of this provision have been very exciting for many in the 
charitable community. According to one survey, approximately 900 
charitable organizations had reported more than 8,500 individual IRA 
distributions, with a total value of nearly $140 million.
  Unfortunately, the tax-favored benefit of the charitable IRA rollover 
is only available for a temporary period and is scheduled to expire at 
the end of this year unless Congress acts. The Public Good IRA Rollover 
Act will not only extend the charitable IRA rollover, it will modify it 
in a manner that we believe will result in more gifts to charity 
without busting the budget. These changes include: allowing taxpayers 
to make life-income gifts from their IRAs to charities at age 59\1/2\, 
eliminating the current dollar cap, and making the charitable IRA 
rollover benefits available to more charitable organizations.
  Adopting these provisions will result in more charitable giving, 
particularly allowing taxpayers to make life-time gifts from their IRAs 
starting at the age of 59\1/2\. Many charities secure funds from life-
income gifts, which involve the donation of assets to a charity, where 
the giver retains an income stream from those assets for a defined 
period. While this provision would stimulate additional giving, 
evidence also suggests that people who make life-income gifts become 
more involved with charities. And, because the income payouts for most 
gift annuities and charitable trusts will be higher than IRA payouts, 
IRA rollovers to life-income agreements may produce immediate taxable 
revenues and score positively. In short, the life-income gift provision 
would greatly benefit charities in a fiscally-responsible manner.
  The Public Good IRA Rollover Act has strong bipartisan support in the 
Senate and House of Representatives. It has garnered the support of the 
Independent Sector, the Council on Foundations, and the Partnership for 
Philanthropic Planning. I am very pleased that the North Dakota 
Association of Nonprofit Organizations, which represents the interests 
of more than 140 nonprofits in my State, has also offered its support 
for this legislation that could help North Dakota charities raise 
millions of dollars in the coming years.
  I also ask my colleagues to review this legislation and consider 
cosponsoring it.
  Mr. President, I ask unanimous consent that letters of support be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                          North Dakota Association


                                   of Nonprofit Organizations,

                                     Bismarck, ND, April 13, 2009.
     Hon. Byron Dorgan,
     U.S. Senate,
     Washington, DC.
       Dear Senator Dorgan: The North Dakota Association of 
     Nonprofit Organizations (NDANO), on behalf of the more than 
     140 member nonprofits in our state, writes to express our 
     support for Public Good IRA Rollover Act you will be 
     introducing later this month.
       NDANO's mission is strengthening member nonprofits, 
     building community and enhancing quality of life, and one of 
     the key issues on NDANO's public policy agenda is charitable 
     giving. More specifically, NDANO supports actions to preserve 
     and expand tax policies that increase incentives for 
     taxpayers to donate to charitable organizations. Donations by 
     individuals to support nonprofit work in North Dakota are 
     essential to increasing nonprofit capacity to meet the needs 
     of the state's citizens and communities, particularly in 
     these challenging economic times. This Act could be a real 
     boost to fundraising, encouraging those age 59\1/2\ and older 
     to make gifts to charities that would not otherwise be given.
       NDANO appreciates your commitment to introduce this Act to 
     incentivize charitable giving. Thank you for your continuing 
     support of North Dakota nonprofits and the entire nonprofit 
     sector.
           Sincerely,
                                                      Dana Schaar,
     Executive Director.
                                  ____



                                           Independent Sector,

                                   Washington, DC, April 21, 2009.
     Re: Public Good IRA Rollover Act of 2009.

     Hon. Byron L. Dorgan,
     U.S. Senate,
     Washington, DC.
     Hon. Olympia J. Snowe,
     U.S. Senate,
     Washington, DC.
       Dear Senators Dorgan and Snowe: On behalf of the over 550 
     member organizations of Independent Sector, I am writing to 
     express our sincere appreciation for your leadership in 
     promoting nonprofits and the work they perform through your 
     introduction of the Public Good IRA Rollover Act of 2009.
       Since it was enacted in August 2006, the current IRA 
     charitable rollover has helped nonprofits enrich lives and 
     strengthen communities across the country and around the 
     world by allowing individuals to make direct gifts to 
     charities from their Individual Retirement Accounts without 
     suffering adverse tax consequences. The IRA rollover is 
     particularly helpful for older Americans who do not itemize 
     their tax deductions and would not otherwise receive any tax 
     benefit for their contributions. We wholeheartedly support 
     the provisions in the Public Good IRA Rollover Act of 2009 
     that make the giving incentive permanent, allow planned 
     giving programs to provide retirement security to donors 
     while helping nonprofits serve their communities, and expand 
     the IRA rollover to donor advised funds and supporting 
     organizations.
       We believe that your Public Good IRA Rollover Act of 2009 
     would greatly enhance the ability of individuals to give back 
     to their communities and offer our assistance in helping to 
     move this important bill through the legislative process.
           Sincerely,
     Patricia Read.
                                  ____

                                                   Partnership for


                                       Philanthropic Planning,

                                 Indianapolis, IN, April 21, 2009.
     Hon. Byron Dorgan,
     U.S. Senate,
     Washington, DC.
     Hon. Olympia Snowe,
     U.S. Senate,
     Washington, DC.
       Dear Senators Dorgan and Snowe: On behalf of the 
     Partnership for Philanthropic Planning (formerly the National 
     Committee on Planned Giving), I write to thank you for 
     reintroducing the Public Good IRA Rollover Act. We appreciate 
     your efforts to help our nation's charities during this 
     period of economic turmoil.
       The Public Good IRA Rollover Act would make permanent and 
     expand the IRA Charitable Rollover enacted in 2006 and 
     extended at the end of last year. As you well know, the IRA 
     Charitable Rollover has already generated a significant 
     amount of new charitable giving by eliminating the barrier in 
     the tax law that had discouraged transfers from individual 
     retirement accounts to charities. These gifts are helping 
     organizations in every state build cancer centers, develop 
     programs for counseling at-risk youth, support housing for 
     homeless families, conserve wilderness areas, help 
     disadvantaged students attend college, and provide therapy 
     for people with disabilities.
       We are pleased that your legislation would expand the 
     current law IRA Charitable Rollover by allowing for qualified 
     charitable distributions to life-income gifts, including 
     charitable gift annuities, charitable remainder trusts and 
     pooled income funds. We are also delighted your legislation 
     would permit distributions from IRA accounts to donor-advised 
     funds, supporting organizations, and private foundations. 
     These important provisions will offer increased options for 
     charitable giving, allowing an entire generation of generous 
     Americans to continue providing for others even in these 
     challenging economic times.
       Again, thank you for reintroducing the Public Good IRA 
     Rollover Act. We look forward to working with your office to 
     ensure it is signed into law soon.
           Sincerely,
                                               Tanya Howe Johnson,
     President and CEO.
                                  ____



                                       Council on Foundations,

                                    Arlington, VA, April 21, 2009.
     Hon. Byron Dorgan,
     U.S. Senate,
     Washington, DC.
     Hon. Olympia Snowe,
     U.S. Senate,
     Washington, DC.
       Dear Senator Dorgan and Senator Snowe: On behalf of the 
     Council on Foundations and our membership of more than 2,100 
     grantmaking foundations and corporations, we would like to 
     thank you for your continued leadership on issues of critical 
     concern to the philanthropic sector and the communities which 
     we serve. We are particularly appreciative of your 
     sponsorship of the ``Public Good IRA Rollover Act of 2009'', 
     legislation which would both permanently extend current law 
     authorizing charitable rollovers of individual retirement 
     accounts (``IRAs''), and permit such rollovers to include 
     gifts to donor-advised funds, supporting organizations, and 
     private foundations.
       Enactment of the ``Public Good IRA Rollover Act of 2009'' 
     will be a crucial step forward in ensuring that philanthropic 
     organizations have the means and flexibility to address 
     dramatically growing needs. Making current law regarding IRA 
     rollovers permanent will provide current donors the certainty 
     needed for prudent charitable gift

[[Page S4581]]

     planning, and will ensure future donors have the ability to 
     use this efficient means of giving. Making the charitable IRA 
     rollover available for gifts to donor-advised funds, 
     supporting organizations, and private foundations will enable 
     additional donors, particularly among middle-income 
     Americans, to utilize charitable rollovers for the benefit of 
     organizations that are particularly well-suited to delivering 
     philanthropic resources quickly and effectively to 
     communities in need.
       Two recent studies by the Council on Foundations show that, 
     in 2007, donor-advised funds accounted for over one-third of 
     all community foundation assets and 62% of their total 
     grantmaking. In addition, donor-advised funds located within 
     community foundations have a payout rate of 16.4%, over three 
     times the minimum required for private foundations by federal 
     law. The Council also has found that donor-advised funds are 
     a particularly effective tool for middle-income Americans to 
     engage in philanthropy. With most community foundations 
     accepting a donor-advised fund in the range of $5,000 to 
     $15,000, donor-advised funds are a philanthropic vehicle that 
     can go to work immediately, a particularly valuable asset 
     given current demands on philanthropic resources.
       Thank you again for your leadership in providing 
     philanthropies with the tools needed to fulfill their 
     missions, and to help meet the growing needs of their 
     communities. We look forward to working with you to achieve 
     passage of the ``Public Good Rollover Act of 2009''.
           Very truly yours,
                                                  Steve Gunderson,
                            President and Chief Executive Officer.
                                 ______