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Tax Provisions on Charity Donations Expire Dec. 31
Wednesday, Dec. 19, 2007
Vic Saunders, WSU Tri-Cities, director of campus and regional development, 509/372-7207, cell 509/737-7060, vsaunders@tricity.wsu.edu
Melissa O’Neil Perdue, WSU Tri-Cities, marketing and promotions manager, 509/372-7319, cell 509/727-3094, moneil@tricity.wsu.edu
Melissa O’Neil Perdue, WSU Tri-Cities, marketing and promotions manager, 509/372-7319, cell 509/727-3094, moneil@tricity.wsu.edu
RICHLAND, Wash. — Helen Mitchell wanted to help a local student get a college education and to honor her father’s career at Washington State University. Provisions in a special piece of tax legislation that expires Dec. 31 allowed her to do both.
The Pension Protection Act of 2006 allowed Mitchell and her husband, Dean, of Kennewick, to establish a scholarship endowment at WSU Tri-Cities in honor of Helen’s father, Dr. Charles E. Skinner. A graduate of
The Pension Protection Act of 2006 offers a way to support charities through retirement accounts without negative tax consequences to the plan owner. But some key provisions expire Dec. 31, 2007.
The Act provides a way to distribute up to $100,000 per year, per taxpayer to a qualified charity — such as WSU Tri-Cities — from a traditional or Roth individual retirement account (IRA). The distributions are not reportable income to the plan owner, nor does the plan owner receive a charitable income tax deduction. However, the distribution can satisfy the plan owner’s required minimum distribution.
A qualified charitable distribution from an IRA can help donors maximize their Social Security benefits, assist donors whose income level triggers the phase-out of their exemptions, and also benefit donors who typically use the “Standard Deduction.” To take advantage of this opportunity, the plan owner must be at least 70-1/2 years of age by the date of distribution. If you do not have an IRA, other retirement plans such as TIAA-CREF [a 403(b) plan] can be rolled over into an IRA to enable you to benefit from this legislation.
“Supporting a charity of your choice through this limited time offer is a great way to fulfill your philanthropic goals,” said Vic Saunders, WSU Tri-Cities director of campus and regional development. “We are very grateful to Helen and Dean Mitchell for the establishment of the Dr. Charles E. Skinner Science Scholarship Endowment and are excited for the many students who will benefit from it for generations to come.”
A number of organizations can assist in creating gift plans that reflect personal and philanthropic goals. Most universities and large charities have a gift-planning team to help you determine the donation that best suits your charitable interests, family needs and financial goals.
These teams also can help you make gifts through charitable gift annuities and charitable remainder trusts, or through a will or a living trust. These gift vehicles may provide additional benefits such as an income tax deduction, potential income for life, and possible estate tax savings.
To learn more about making donations through your IRA before the tax provisions expire Dec. 31, contact Vic Saunders at WSU Tri-Cities at 509-372-7207 or vsaunders@tricity.wsu.edu, or call your favorite charity or financial advisor.