RIFT Advocacy Action Alert - March 12, 2024

The FinCEN government agency (part of the United States Treasury) plans to release a document regarding the situation where an IRA custodian (who is a broker-dealer) mandates that a charity set up an inherited IRA first to collect on a deceased donor's account. FinCEN states that a social security number and other such information must be provided to the IRA custodian under the Customer Due Diligence Rules.

FinCEN realizes that not all custodians require an inherited IRA, and those who do not will not have to collect this information. However, those custodians who do require the Inherited IRA will have to collect this information.

FinCEN claims it hasn't heard from charities that this has been a problem. Now is the time to take action and tell FinCEN about the hardships organizations have been under throughout the country.

We must act quickly before the statement is released. Email FinCEN directly today using this template (feel free to modify it as you wish) to tell them about your specific cases and the hardship your organization has experienced.

In a recent CGP survey, 43% of organizations stated they experienced difficulty in collecting beneficiary proceeds from one or more IRA administrators. This is a matter of great concern to nonprofit organizations across the country. Many individuals and organizations are working to improve the timely distribution of beneficiary proceeds from financial institutions. Through awareness, advocacy and the collection of valuable information to assist organizations, they have created a number of resources to expedite distributions and promote change in institutional policy. The goal of the center is to organize the results of their efforts in one location to benefit the entire nonprofit sector.

This center is meant to be dynamic with new resources and information added as they become available. If you have information to share or know of a resource that should be added, please let us know by adding your comments in the “Contact Us” bulleted link below.