Earlier this year, the Pension Protection Act of 2006 became law. This is good news for many Americans United donors – and for the non-profit organizations they support.
Starting immediately, donors older than 70 and one-half years of age can donate, tax free, up to $100,000 per year from an Individual Retirement Account (IRA) to Americans United and other qualified organizations.
Before this new law came into effect, any amount taken from an IRA had to be reported as taxable income, and although a charitable deduction could be taken, it was limited to 50 percent of adjusted gross income.
AU Development Director Marjorie Spitz Nagrotsky urges potential donors to consult their tax advisors to get a full picture of its benefits and rules. She said one element is clear: Gifts must be made directly to the charity (by check or bank transfer) and they cannot be funded with trusts, annuities or other planned gifts.
Please contact Spitz Nagrotsky at 202-466-3234 or online at spitz@au.org for more information.
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