Skip to main content
  • Heart Attack and Stroke Symptoms
  • Volunteer
  • Learn CPR
  • ShopHeart
American Heart Association heart and torch logo
American Heart Association
  • Donate Once
  • Donate Monthly
  • donateDonate
  • Close Menu

    Trending Search

    • find my cpr card
    • bls
    • ecard
    • find my acls card
    • acls
  • Healthy Living
  • Health Topics
  • Professionals
  • Get Involved
  • Ways to Give
  • About Us
  • Learn CPR
  • In Your Community
  • Heart Attack and Stroke Symptoms
  • Learn CPR
  • Volunteer
  • ShopHeart
  1. Home
  2. Around the AHA
  3. New tax law may incentivize seniors to give more to charities

New tax law may incentivize seniors to give more to charities

Luis Alvarez/DigitalVision via Getty Images
(Luis Alvarez/DigitalVision via Getty Images)

When her mother died of cancer, Janet Shapiro knitted blankets for patients receiving chemotherapy and made annual donations to cancer charities.

After her father died of a stroke, she became an ardent supporter of the American Heart Association.

"My parents did very well in life, and they always wanted to give back," Shapiro said. "My faith tells me that we can't solve every problem there is, but we can start somewhere and try to fix something."

Over the years, Shapiro had saved and invested her money wisely, building a sizable stock portfolio. Some of her holdings had appreciated so much that she would incur significant capital gains taxes if she sold them. Instead, in 2016, she used some of those holdings to create a Charitable Gift Annuity, or CGA, with the American Heart Association.

The CGA works like this: In return for donating stock to the organization, the AHA will pay Shapiro a fixed stream of income for the rest of her life. In addition, she can claim a partial tax deduction. "Financially, it's a very valuable way to handle your assets," she said. "The high value of the stocks allowed me to give so much more than I could've given through a cash donation alone."

Until recently, the law prevented people from using IRA funds to create life-income gifts such as CGAs. That changed in January, when the Secure 2.0 Act of 2022 took effect. The law contains 92 provisions related to employer retirement plans and IRAs, including provisions of the Legacy IRA Act, which allows people 70½ and older to make a one-time qualified distribution of $50,000 from an IRA to a CGA, a charitable remainder annuity trust, or a charitable remainder unitrust. While the $50,000 cap can only be used in one calendar year, seniors may donate to multiple charities totaling $50,000 in that one-year period. The donations are tax-free and count toward a person's required minimum distribution.

In addition, starting in 2024, the act permanently indexes the existing IRA Charitable Rollover's $100,000 annual cap to inflation — the first increase in nearly 20 years.

The AHA led a coalition of nearly 60 of the country's largest charities, including the American Red Cross, and faith-based organizations to build bipartisan support among lawmakers for the legislation.

Sens. Kevin Cramer, R-N.D., and Debbie Stabenow, D-Mich., and Reps. Don Beyer, D-Va., and Mike Kelly, R-Pa., championed the inclusion of the Legacy IRA Act in the $1.7 trillion omnibus package Congress passed in December.

Planned giving experts believe the act may generate hundreds of millions of dollars in annual donations for charitable organizations, including tens of thousands of new or increased donations to the AHA.

"With passage of the bipartisan Legacy IRA Act, Congress would incentivize charitable giving to countless nonprofits nationwide that continue to face significant financial and operational obstacles in the wake of the pandemic," said Raymond Vara, volunteer chairperson of the board of the American Heart Association. "Our country is stronger when everyone has the opportunity to support the charitable organizations that work tirelessly to improve and enrich our communities."

"With the passage of the Legacy IRA Act, Congress will make it easier for seniors to give and will bolster nonprofits nationwide," he added.

Indeed, according to Blackbaud Institute's 2018 The Next Generation of American Giving Report, baby boomers are responsible for 41% of charitable donations nationwide.

As a result of the law, Janet Shapiro has been able to leverage her funds more effectively to support the American Heart Association.

In fact, she was the first donor to set up an account benefiting the AHA using her IRA funds. She now has five CGAs with the AHA and has also left the organization a gift in her will.

"I want to do good now, and I also want to leave a legacy," she said. "If we can do anything for this world, we should work to enhance people's health. I know the research I am supporting today can truly help change future lives."


Last Reviewed: Apr 13, 2023

X formerly known as Twitter Facebook LinkedIn Email Print

Around the AHA

Around the AHA
  • A Century of Heart
  • What Actually Happened
  • What does the sugar in beverages do to your body?
  • Supporting heart health, one dish at a time
  • Singer Amy Grant reflects on rare heart condition that could have killed her
  • The Bugher Foundation has provided valuable funds, ideas to support AHA research, researchers

*All health/medical information on this website has been reviewed and approved by the American Heart Association, based on scientific research and American Heart Association guidelines. Find more information on our content editorial process.

American Heart Association

National Center
7272 Greenville Ave.
Dallas, TX 75231

Customer Service
1-800-AHA-USA-1
1-800-242-8721

Contact Us

Hours
Monday - Friday: 7 a.m. – 7 p.m. CT 
Saturday: 9 a.m. - 5 p.m. CT
Closed on Sundays

Tax Identification Number
13-5613797

About Us

  • About the AHA/ASA
  • Our Impact
  • Annual Report
  • AHA Financial Information
  • International Programs
  • Latest Heart and Stroke News
  • AHA/ASA Media Newsroom
  • Careers

Get Involved

  • Donate Now
  • Make a Memorial Gift
  • Ways to Give
  • Advocate
  • Volunteer
  • Go Red For Women
  • ShopHeart
  • ShopCPR

Our Sites

  • American Heart Association
  • American Stroke Association
  • CPR & ECC
  • Professional Heart Daily
  • More Sites
  • Facebook
  • Instagram
  • X formerly known as Twitter
  • Tik Tok
  • YouTube
  • LinkedIn
  • Pinterest
  • National Health Council Standards of Excellence Certification Program page for Standards of Excellence
  • Better Business Bureau page for American Heart Association
  • Charity Navigator Home
  • Secured by Sectigo page for SSL certificates
  • AHA Careers
  • Privacy Policy
  • Medical Advice Disclaimer
  • Accessibility Statement
  • Copyright Policy
  • Ethics Policy
  • Conflict of Interest Policy
  • Linking Policy
  • Whistleblower Policy
  • Content Editorial Guidelines
  • Suppliers & Providers
  • State Fundraising Notices


©2025 American Heart Association, Inc. All rights reserved. Unauthorized use prohibited.
The American Heart Association is a qualified 501(c)(3) tax-exempt organization.
*Red Dress ™ DHHS, Go Red ™ AHA ; National Wear Red Day® is a registered trademark.

×
American Heart Association logo

This link is provided for convenience only and is not an endorsement of either the linked-to entity or any product or service.

Proceed