Washington, D.C. — Colorado U.S. Senator Michael Bennet joined U.S. Senators Todd Young (R-Ind.), James Lankford (R-Okla.), Catherine Cortez Masto (D-Nev.), and Maria Cantwell (D-Wash.) to introduce the IRA Charitable Rollover Facilitation and Enhancement Act, legislation that would amend the tax code to support more charitable giving options for older Americans.
Under current law, American taxpayers aged 70½ or older are allowed to make Qualified Charitable Distributions (QCDs) from an individual retirement account (IRA) to a qualifying 501(c)(3) charity without counting the distribution as taxable income. The law, however, does not allow these older Americans to make QCDs to a donor-advised fund (DAF) – an increasingly popular charitable giving account managed by a public charity. This has created an obstacle for donors who want to simplify and coordinate their charitable giving by supporting multiple charities with a single gift. The IRA Charitable Rollover Facilitation and Enhancement Act would remove this unnecessary barrier to generosity by amending the tax code to allow charitable rollovers from IRAs to DAFs, while ensuring the benefit is targeted to everyday donors.
“The IRA Charitable Rollover Facilitation and Enhancement Act will streamline the charitable donation process, empower Coloradans to do more with their giving, and direct larger amounts back to Colorado communities,” said Bennet. “Community foundations are one of the most powerful tools we have. They know their neighbors, understand local needs, and come up with creative ways to reinvest charitable contributions back into the places donors call home.”
“Charitable giving has long been a way for Americans to support their local communities and causes they believe in,” said Young. “Our bill will make a small fix to the tax code to enable more flexibility for older Americans to generously give to the people, places, and organizations they care about.”
“This bill makes a simple fix,” said Lankford. “It allows Qualified Charitable Distributions to work better with donor-advised funds, which help families set money aside and support the causes they care about over time. For smaller and rural charities in Oklahoma, that means more steady, local support. If we want stronger communities, we should make it easier for Americans to give and make a difference close to home.”
“The current tax code makes it harder for generous Nevadans to give to charitable organizations,”said Cortez Masto. “This simple, commonsense fix will make it easier for Americans to give donations to the causes that they value and will spur more people to invest in their communities.”
“Community foundations in Washington State do incredible work supporting multiple, community-based organizations—food banks, childcare centers, housing programs, health clinics, and environmental groups—many of which rely heavily on local philanthropy,” said Cantwell. “This bill will make it easier for donors who want to use some of their retirement assets to help these smaller, local nonprofits that often get overlooked when gifting becomes complicated.”
“Metro Denver has a rich community of nonprofits, and we know our donors care about various causes and want to support multiple organizations,” said Javier Alberto Soto, President and CEO of Denver Foundation. “Allowing donors to make a Qualified Charitable Distribution to their donor-advised fund would make it easier for donors to do that, and more nonprofits, including smaller organizations, would benefit from this form of giving. We appreciate Senator Bennet’s dedication to advancing this effort.”
“We are deeply grateful for Senator Bennet’s leadership on this issue,” said Kristin Todd, President and CEO of NoCo Foundation. “Expanding the use of Qualified Charitable Distributions to include donor-advised funds will enhance philanthropy across Northern and Eastern Colorado by empowering donors, strengthening nonprofits, and building long-term resources for our communities. This change would significantly strengthen philanthropy in the rural communities we serve, ensuring that charitable dollars stay local and can be deployed strategically to meet evolving community needs. This is a forward-thinking step that will benefit our region for generations.”
The IRA Charitable Rollover Facilitation and Enhancement Act is supported by American Endowment Foundation, Community Foundation Awareness Initiative, Council on Foundations, Denver Foundation, National Association of Charitable Gift Planners, National Christian Foundation, National Philanthropic Trust, NoCo Foundation, Philanthropy Roundtable, Philanthropy Colorado, Pikes Peak Community Foundation, Ren, Inc., and the Telluride Foundation.
U.S. Representatives Adrian Smith (R-Neb.) and Jimmy Panetta (D-Calif.) introduced companion legislation in the House of Representatives last year.
The text of the bill is available HERE.
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