A Message from the Greater Pittsburgh Council Planned Giving Office 

Attention all over 70-1/2 years of age!

(New law passed by Congress to encourage giving)

Due to the Pension Protection Act that recently became law, people over 70-1/2 years old may donate up to $100,000 from their IRAs in both 2006 and 2007 without paying federal or state income tax on these funds. 

Individuals with traditional IRAs may make tax free gifts to qualified 501(c)(3) charities by direct transfer, but may not direct gifts to donor advised funds, charitable remainder trusts, gift annuities or similar planned gifts. Donors may not claim an income tax deduction if they give in this manner. 401(k) and 403(b) plans, or other non IRA plans do not qualify. Check with your advisors to determine if you may transfer funds from other accounts into an IRA and then make a charitable gift. 

A couple with separate IRAs may each contribute up to the limit in both years of the program. Donors over 70-1/2 may use this method for their regular charitable gifts during this period of time, or use it to make capital campaign pledges or to create permanent endowed funds to the Greater Pittsburgh Council.

How to initiate a tax free gift from your IRA

• Call your IRA fund custodian/investor/broker.
• He/she may have a form for you to complete to give instructions to him/her regarding the charity(s) you wish to receive gifts.
• The fund custodian will then send a check to the charity. (The funds may not be given to you to send out personally). He/she must also send a letter with the check to the charity indicating that this gift is from your IRA.
• The charity (Greater Pittsburgh Council) will send a special letter of acknowledgement to the donor to verify that the gift from the IRA was received and the date it was received. Gifts not received by December 31, 2006 will be counted for 2007.
• Your broker/fund custodian/investor may have other instructions for you. If he/she is not sure how to proceed, have the person call Amy D. Franz at (412) 325-7910 for suggestions.

For more information, please contact Amy D. Franz, Director of Finance Services for the Greater Pittsburgh Council at (412) 325-7910. The above is general information. Please contact your financial advisor or attorney or other advisors for professional advice if needed.