Individual retirement account charitable rollover

In 2006, Congress first approved the individual retirement account--or IRA--charitable rollover to encourage gift donations. It allows persons aged 70½ and older to contribute to a charity from their account without paying a penalty for withdrawal of the funds.

Each year since its enactment, the March of Dimes has worked with other tax-exempt organizations to successfully lobby Congress to extend the provision for an additional year.  While the Foundation and other leaders in the nonprofit community have long recommended that the provision be made a permanent part of tax law, the revenue loss associated with its extension ($120 million annually) causes Congress to proceed more cautiously and instead consider the issue each year.

The House of Representatives passed the American Jobs, Closing Tax Loopholes, and Preventing Outsourcing Act of 2010 (H.R.4213) on May 28, 2010.  The bill would extend the IRA charitable rollover, and a number of other expired tax provisions, through December 31, 2010.  The extension would be retroactive to January 1, 2010.  The Senate has not yet passed the legislation due to concerns about how the costs will be offset.  The March of Dimes continues to urge Senators to reinstate and extend the IRA charitable rollover provision.

Most common questions

Are charities allowed to lobby?

The March of Dimes is registered with the Internal Revenue Service as a 501(c)(3), which defines us a charity, meaning that we are exempt from federal income tax and donations to us are tax-deductible for the donors.

This designation stipulates that as a tax-exempt organization, we must be nonpartisan, so we cannot ever endorse a particular politician or political party. And it means our lobbying must be "minimal" - meaning that resources devoted to it are constrained. As long as we stay within that framework, the law and regulations provide that we may lobby at all levels of government.

If the price of stamps goes up, does this affect the March of Dimes?

Yes, the March of Dimes takes advantage of the Nonprofit Standard Mail rates and other incentives offered by the U.S. Postal Service. So we are closely following the currently proposed 4 to 6 percent increase in these rates. If allowed to go into effect, this would substantially increase mailing costs for the March of Dimes as well as other nonprofit organizations.

When was FDR’s profile put on the dime?

In 1945, U.S. Representative Ralph H. Daughton of Virginia introduced H.R. 4790 to create a dime "bearing the likeness of Franklin Delano Roosevelt." The dime was chosen due to the significance of President Roosevelt asking the public to send a dime for research to stop the incidence of polio and to aid victims of the disease. Following passage in both the House and the Senate, President Truman signed the legislation into law. The first Roosevelt dime was minted in 1946.

©2013 March of Dimes Foundation. The March of Dimes is a non-profit organization recognized as tax-exempt under Internal Revenue Code section 501(c)(3).