The NEW Charitable IRA
Congress has recently taken important steps to strengthen America's retirement system while also encouraging additional charitable giving. The Pension Protection Act of 2006 may offer you new opportunities for tax-free charitable giving. The new law includes incenitves for those 70 ˝ years of age and older who would like to make charitable gifts from potentially taxable Indiviudal Retirement Account (IRA) funds. For 2006 and 2007, congress is allowing individuals with traditonal or Roth IRAs to make tax-free gifts directly to qualified charities. Donors may choose to make charitable distributions in any amount up to $100,000 per year. A couple with separate IRAs may each give up to that amount. The provisions of the law will affect individuals in a variety of ways, so check with your financial advisor.
Request a Charitable IRA Brochure
Publicly Traded Securities
Gifts of appreciated securities, including stocks and bonds, have several tax advantages and make excellent gifts for the Foundation and the donor. When you transfer appreciated stocks or bonds to the Foundation, you can avoid capital-gains tax and secure an income-tax deduction for the security’s full fair-market value. This can allow you the opportunity to make larger gifts than you ever thought possible, particularly when gifting highly appreciated securities with a very low cost basis.
According to the IRS, gifts of capital-gain property can be deducted up to 30% of your adjusted gross income. Amounts not used can be carried forward a total of five years.
Instructions for making a Gift of Securities
Real Estate
Gifts of appreciated real estate are like gifts of appreciated securities. When the property has been owned for more than one year, the fair market value may be deducted as a charitable contribution while avoiding capital-gains taxes. A gift of real estate may be an ideal way to attain a level of giving not possible through other sources.
Request Brochure on Giving Real Estate
For questions or comments specific to giving opportunities and charitable partnerships with the Miller-Dwan Foundation, call 218-786-5829 or contact us at giving@mdfoundation.org.
