March 2022
The Honorable Ron Wyden, Chair
Committee on Finance
U.S. Senate
Washington, D.C. 20510
The Honorable Richard Neal, Chair
Ways and Means Committee
U.S. House of Representatives
Washington, D.C. 20515
The Honorable Mike Crapo, Ranking Member
Committee on Finance
U.S. Senate
Washington, D.C. 20510
The Honorable Kevin Brady, Ranking Member
Ways and Means Committee
U.S. House of Representatives
Washington, D.C. 20515
Dear Chairmen Wyden and Neal and Ranking Members Crapo and Brady:
Leadership 18 supports the bipartisan Legacy IRA Act (S. 243/H.R. 2909), a bill to encourage charitable giving by enabling seniors to make tax-free contributions from their individual retirement accounts (IRA) to charities through life-income plans.
To operate effectively and advance our tax-exempt purpose, we are dependent on private philanthropy, including gift planning. A few years ago, when the IRA Charitable Rollover provision was made permanent, many of our organizations saw a dramatic increase in charitable giving from traditional IRAs. Data from FreeWill’s online QCD giving platform shows the value of the current Charitable IRA Rollover as there was a 390% increase in total number of gifts from 2019 to 2021. And yet, in a survey of 300+ nonprofit professionals, 23% said their QCDs came from high net worth or upper middle-class individuals. The Legacy IRA Act would expand this giving incentive to more middle-income seniors.
The undersigned CEOs support the Legacy IRA bill, which would allow seniors to make tax-free IRA rollovers to charities through life-income plans, such as charitable gift annuities. The senior’s annual retirement income from the life-income plan is fully taxed. We believe this new giving option will be particularly attractive to middle income seniors, a critical demographic as seniors make up more than 40 percent of the donor base for most charities.
Leadership 18 is an alliance of CEOs responsible for leading some of the country’s largest and most well-respected charities, non-profits, and faith-based organizations. As a group, member organizations have served over 400 million people, with 42.7 million staff and volunteers, and represent more than $80 billion in total revenue. We are a community of leaders who share a profound commitment to ensuring that all individuals have the opportunity to contribute to a vibrant America, and with opportunity and effort, can live their lives to their fullest potential.
Leadership 18 offers our support and is willing to work with you and other Members of Congress to enact the Legacy IRA bill on its own or attached to a larger legislative vehicle, such as the Securing a Strong Retirement Act. America is stronger when everyone has the opportunity to give, to get involved, and to strengthen their communities.
Sincerely,
Leadership 18
Signers:
Nancy Brown*
CEO
American Heart Association
Gail McGovern*
President & CEO
American Red Cross
Artis Stevens
President & CEO
Big Brothers Big Sisters of America
Jim Clark
President & CEO
Boys & Girls Clubs of America
Sister Donna Markham*
President & CEO
Catholic Charities USA
Sofia Chang
CEO
Girl Scouts of the USA
Stephanie J. Hull*
President & CEO
Girls Inc.
Steven C. Preston
President & CEO
Goodwill Industries International, Inc.
Jonathan Reckford*
President & CEO
Habitat for Humanity International
Eric D. Fingerhut
President & CEO
The Jewish Federations of North America
Charlotte Haberaecker
President & CEO
Lutheran Services in America
Schroeder Stribling
President & CEO
Mental Health America
Ramsey Alwin
President & CEO
National Council on Aging
Commissioner Kenneth G. Hodder
National Commander
The Salvation Army
Jody Levison-Johnson
President & CEO
Social Current
Mike King
President & CEO
Volunteers of America
Suzanne McCormick
President & CEO
YMCA of the USA
Margaret Mitchell
CEO
YWCA USA
*Executive Committee Member