[Page 2] New charitable IRA rollover rules

Legislation passed this year now allows certain donors to contribute assets within a qualified tax-deferred retirement plan (IRA, 401k, etc.) directly to a public charity. This provision is valuable to certain older individuals who desire to make contributions to charity using tax-deferred funds, and to do so while potentially avoiding income tax on their charitable distribution. This provision is available only for 2006 and 2007, unless Congress extends the law. The bill authorized a tax-free distribution of up to $100,000 per year for individuals age 70 1/2 and older. Certain restrictions apply to the type of gift and receiving charity status (no private foundations or donor-advised funds, for instance). To find out if you qualify to use your tax-deferred funds to establish a fund at the San Angelo Area Foundation, please call the Foundation or your financial advisor.

Gifts of stock make sense

Whether you are creating a new fund at the Foundation or want to make a gift to an existing fund, gifts of stock offer many advantages. Your donation is eligible for a charitable gift deduction, and you avoid capital gains taxes. Check with your financial advisor and call us to take advantage of this great gifting tool.

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