November 29, 2007 | Read Time: 1 minute
When the House of Representatives passed its controversial Responsible Tax Relief Bill this month, it also voted to extend a tax incentive that allows older donors to deduct money contributed to charities through their individual retirement accounts.
The incentive, which allows taxpayers age 70 1/2 to make tax-free charitable contributions from their IRA accounts, is scheduled to expire on December 31. The House bill would extend the provision for another year.
Many nonprofit groups and foundations have been pushing for an extension of the incentive, saying that it gives donors more flexibility and encourages giving.
Some organizations, including the Association of Fundraising Professionals and the National Committee on Planned Giving, have also been lobbying to expand the incentive to include younger donors and to cover contributions to donor-advised funds. Those measures are not included in the bill.
