New Law Brings New Opportunities
Congress has taken important steps to help our retirement system and in encouraging charitable giving. The Pension Protection Act of 2006 may offer you new tax-free charitable giving methods.
Gifts to the SAU Foundation may allow you deductions from your tax burden. For 2006 and 2007, Congress is allowing individuals who have traditional or Roth IRAs to make tax-free gifts directly to qualified charities (such as SAU Foundation). Donors may choose to make charitable distributions in any amount up to $100,000 per year, if desired. A couple with separate IRAs could each give up to that amount.
Who will this help?
This will help individuals who are required to take IRA distributions and others who have experienced adverse tax consequences due to the rules of IRAs. IRAs are subject to income tax and estate taxes if left to loved ones. So, it may be more advantageous to make your charitable donations from your IRA instead.
Act Now for the Greatest Advantage
You must complete each year’s transfer from your IRA to your charity prior to December 31 of that year. Check with your tax advisor about these new ways of giving. As always, we are happy to help you in any way possible.
Scholarship Opportunities
SAU is under new guidelines for the administering of scholarships. The state of Arkansas now limits the amount that public universities can give in scholarships. SAU is one of the most generous in giving scholarships to their students. But with the new changes, we have opportunity for new ways to help students and professors in the pursuit of a quality, higher education that SAU offers. Consider the following:
1. If you already have a completed endowment, would you consider making additional gifts to it? That would allow the endowment to pay more toward its scholarship. Think of it as a savings account that pays around five percent interest. That is how much your endowment gives toward your scholarship.
2. The Foundation is now offering opportunities to build new scholarships. If you want, please start an endowment to benefit students and professors. These endowments will make “interest only” payments to your scholarship or other endowment each year.
