Feb. 2, 2009
IRA charitable rollover extension benefits Northwest and its donors
The recent passage of the Emergency Economic Stabilization Act of 2008 provides an opportunity for individuals to make a financial contribution to Northwest Missouri State University, through the Northwest Foundation Inc., using IRA funds without tax complications.
The legislation includes a two-year extension of the IRA charitable rollover. The provision, originally enacted as part of the Pension Protection Act of 2006, permits IRA owners starting at age 70½ to make tax-free charitable gifts totaling up to $100,000 per year from their IRAs directly to eligible charities, including universities. The provision expires Dec. 31, 2009.
When the initial Pension Protection Act of 2006 was announced, Robert Lee and Doris Ann Stanton of Rock Port took full advantage of the opportunity, and now that the program has been extended, the couple is considering making another IRA charitable rollover gift.
Robert Lee Stanton, a co-chairman of the Bearcat Stadium reconstruction committee in 2002, served on the Northwest Board of Regents and Northwest Foundation and has been a longtime supporter of the University. The Stanton's $100,000 gift benefited the second round of improvements to Bearcat Stadium, which included the installation of lights and an artificial surface.
Orrie Covert, executive director of the Northwest Foundation, said the Emergency Economic Stabilization Act of 2008 not only significantly enhances the possibility for private support for Northwest, but it also enables donors at all levels to maximize their philanthropy.
According to the Council for the Advancement and Support of Education, prior to enactment of the IRA charitable rollover, individuals who wanted to make charitable contributions of traditional IRA assets could have suffered negative tax consequences. Even if funds were transferred directly to a public charity, the donor still had to report the IRA gift as ordinary income taxable at regular rates.
"A gift through this program generates neither taxable income nor a tax deduction, so even those who don't itemize their tax returns receive the benefit," Covert said. "In most cases, the transfer counts toward your minimum required distributions, and the distributions may be in addition to or fulfill any charitable giving you have already planned."
Individuals 70½ or older who are considering a gift to the Northwest Foundation under this law are advised to contact their tax professional or IRA administrators. For additional information, contact Orrie Covert at 660.562.0816 or firstname.lastname@example.org .
The Northwest Foundation, a 501(c) 3 not-for-profit corporation, is responsible for receiving, investing, stewarding and disbursing private support on behalf of the donors of Northwest Missouri State University for the benefit of the University, its students, faculty, staff and alumni. The Northwest Foundation, governed by a 29-member volunteer board of directors, is staffed by members of Northwest's Office of University Advancement.
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Mark Hornickel, Media Relations Specialist
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