Timely IRA Charitable Beneficiary Distributions: A Two-pronged Approach

Organizations simply shouldn’t have to work this hard to realize the intent of generous donors who have designated their favorite charities as beneficiaries of their IRAs. Some financial institutions require an onerous amount of paperwork and personal authorization requirements that can take months to resolve, while other institutions require less information and process distributions efficiently and timely. Finding a comprehensive solution has been challenging our sector for years.

RIFT Project founder Johni Hays, J.D., FCEP, has worked tirelessly to build the RIFT Database, hosted on the CGP website. The RIFT Advocates, founded by Karen Smedley, is a group of advocates who regularly meet and help to provide updates to the database. 

For practitioners, this is a valuable tool for navigating the maze of restrictions and policies of financial institutions. However, the need for a clear and consistent policy across all institutions remains.

As we continue toward a future where donors’ wishes are honored without unnecessary barriers, your voice can make a difference. If you are interested in joining our advocacy efforts, whether working to introduce a bill in your state or connecting with members of Congress, contact us at advocacy@charitablegiftplanners.org.

Michael Kenyon
President and CEO
The National Association of Charitable Gift Planners

Key Legislative Developments: 

Making Change at the State Level
In 2024, Iowa was the first state to pass the Charitable Organizations Privacy Protection Act, requiring financial institutions to make timely charitable beneficiary distributions without requiring charities to open new accounts to receive them. This marks a significant shift in providing a solution through state legislation, and in 2025 a similar law was passed in Indiana. Efforts spearheaded by the RIFT Advocates group have resulted in six additional states introducing similar legislation, and another 15 states are actively pursuing legislative measures.

Advocacy Efforts on the Federal Level
This action at the state level adds new momentum and urgency to find a federal solution that provides a streamlined process for organizations across the country. CGP is currently educating key legislators on this issue and working with multiple federal agencies to identify opportunities to clarify policies and regulations affecting charitable beneficiary designations. Our goal is to provide a report with recommended policy changes for all financial institutions to confidently streamline charitable beneficiary distributions while maintaining full compliance with federal regulations.

Resources:

“Overcoming Obstacles When Charities Collect Deceased Donors' IRAs” by Johni Hays.
Published in October’s special edition of The Journal of Gift Planning, learn the impact of legislation, how to respond and what’s being done at the federal and state levels. 

Charitable Beneficiary IRA Distribution Resource Center
Open to the public, this CGP resource offers guidance to work most effectively with financial institutions.

Advocacy Update | Thursday, May 21, at 2 pm ET

Advocacy Updates are free to those who register. Additional details will be posted at the end of April.