There is now a brief window of opportunity that allows some the chance to share these assets in a new way. In the past, the tax deductions from an IRA gift to a charitable organization often did not fully offset the taxable income the withdrawal incurred.
Fortunately, the Pension Protection Act of 2006 helps families overcome that problem and reach their charitable goals. If you are over age 70 ½, the Pension Protection Act allows you to make tax-free charitable gifts of up to $100,000 through your IRA, and this opportunity is only available through Dec. 31, 2007.
"It's an opportunity to make a gift without taking the IRA distribution into income," said Maston Courtney, who with his wife, Barbara, utilized the provision to support their endowed scholarship at Truett Seminary. "For anyone who has a mind to make a gift and has available funds in an IRA-it's a grand opportunity!"
To make use of the Pension Protection Act, send your administrator a written request asking that the distribution be made payable to Baylor University. Next, contact the Office of Gift Planning at 1-800-BAYLOR-U, option 4, to notify them of the gift and the plan administrator name. Finally, designate your gift to University Libraries.
For more information about making a gift from your IRA, please contact the Office of Gift Planning at 1-800-BAYLOR-U, option 4, or (254) 710-2561.