October 21, 2008

They're Back: IRA Rollovers Offer a Great Way to Give

Dale A. Burke, D.D.S. '57 (pictured above) took advantage of the original Pension Protection Act to make a leadership gift to the Dental School Annual Fund and other gifts totaling $50,000 in honor of his 50th Reunion.

On October 3, federal charitable IRA legislation was renewed that allows individuals aged 70-1/2 or older to make outright gifts from individual retirement accounts without tax complications. As with previous legislation, donors may give up to $100,000 each year in 2008 and 2009 to a charitable institution like Case Western Reserve University.

This giving option is particularly beneficial to Case Western Reserve alumni and friends who are required to take minimum withdrawals from their IRA accounts but do not need the income. The legislation also enables donors to increase their charitable giving by up to $100,000 more while avoiding up to $35,000 in federal income tax on IRA distributions in each of the next two years.

“These rollovers are a win-win deal for the donor and the university,” says John Shelley, executive director of planned giving at Case Western Reserve. “Not only do donors enjoy a slew of tax advantages, but they may suddenly be in a position to increase their giving to benefit the present and future of the institution.”

When the original Pension Protection Act of 2006 was enacted, Case Western Reserve alumni and friends gave over $2.4 million over the two-year period through tax-free IRA distributions. These distributions allowed these donors to make stretch gifts to the Annual Fund, pay off existing pledges early, and create endowed funds that will continue to impact the university in perpetuity.

“We know that our Annual Fund donors are always looking for creative ways to sustain and enhance their giving,” notes Kassy Wyman, director of the university annual fund. “IRA rollovers are one more giving vehicle in a donor’s list of financial resources as they weigh their philanthropic options from year to year.”

To learn more about making a charitable donation to Case Western Reserve through an IRA rollover, please contact John Shelley at 216-368-4460.

Posted by: Amy Raufman October 21, 2008 11:42 AM | Category: Endowment , IRA Rollover , Individuals , Planned Gifts , Priorities , Program Enhancement and Community Outreach , Source , University Wide