Consolidated Appropriations Act of 2023 and Secure 2.0


By now, you may have heard that President Biden signed into law the Consolidated Appropriations Act of 2023. Included in this act is a provision referred to as Secure 2.0.

Major Takeaways:

  • Raises the age for required minimum distributions, from 72 (in 2022) to 73 in 2023, and 75 in 2033
  • Individuals can make a gift or “convert” up to $50,000 of IRA assets into a Charitable Remainder Trust or into a Charitable Gift Annuity
  • The $100,000 cap on Qualified Charitable Distributions will be indexed for inflation starting in 2024


You’re wondering … what does this mean and

how does it impact fundraising and my donors?


Point 1:

Fundraisers will lose another year of donors required to make distributions from their IRAs, which could impact QCD gifts. If a donor isn’t required to take money out of their IRA (that they might not need), they may be less inclined to make a gift or as big of a gift. It shouldn’t impact any current QCD donors as they’ll age with the provision, but it could impact new QCD donors.

Point 2:

Like many provisions, this looks better on the surface than it really is. Whether a charitable trust or CGA, donors can only give to “new” agreements. Few financial houses will touch a CRT of $50,000 practically eliminating this option. The provision also puts a floor on CGA distributions of 5%, which in today’s world is fine, but should economic situations change dramatically, fundraisers might be choosing between the ACGA rates and accepting a gift. Also, in the current provision, all CGA disbursements are taxablewhich in a traditional CGAportion of the distribution is “return of principal” and not taxable.

Point 3:

The best news of this act! Starting next year (yes 2024 is now only next year!)donors will be able to make gifts greater than $100,000 to nonprofits and have them count as Qualified Charitable Distributions. This should help donor’s gifts keep pace with inflationand their assets.

In the end, Secure 2.0 is a mixed bag for fundraising. We should take comfort in the fact that there are charitable items in the Consolidated Appropriations Act of 2023. As fundraisers, this legislation brings attention to the work that we do. BUT, it also reinforces that we need to focus on the emotional aspects of our work and marketing.

Donors need to understand the impact they can make

and that people like them, make gifts like this.


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