An extension of a law protecting certain philanthropic gifts from taxation has been permanently extended by Congress, and development directors for charities along the Gulf Coast are busy reminding people of the change.

The IRA Charitable Rollover Law for this year and beyond allows people who are more than six months past age 70 to donate up to $100,000 from an Individual Retirement Account without having to pay any income tax on the donation. Evan Guido, director of the Evan Guido Group at Baird Financial Advisors, said the change should benefit both charities and donors. “The advantage is that when you have an IRA, the money is tax-deferred but when you take it out, Uncle Sam is taking a portion of the income,” he said. With the rollover law, the money being given never gets taxed in that fashion.

And nonprofits in the region want donors taking advantage of this exemption. The Sarasota Ballet on its website calls it “a nice, simple and effective way of making a charitable gift.” The Ringling suggested it as “an excellent way to provide support for your favorite projects” in a fundraising email. The YMCA Foundation posted a frequently asked questions guide on the matter and directed Sarasota donors to call a staff person in this area for more details.

Guido said donors ought to keep certain restrictions in mind. While the gifts can be used for pledges, "you may not receive anything (other than an intangible religious benefit) from the charity as a quid pro quo for your contribution,” he noted. “The charity must provide you an acknowledgement stating the amount of the charitable distribution and that no goods, services or benefits of any kind were or will be provided to you in consideration for the distribution from the IRA. Also, the contribution cannot go to a donor-advised fund, supporting organization or private foundation.” And you cannot make the distribution from a Simplified Employee Plan or a Savings Incentive Match Plan for Employees if an employer contribution is made for the same year.