« “Grassroots Matching Grants: My Five Minutes as a Donor”  •  links for 2006-10-22 »

Charitable giving gets easier, and harder

October 20, 2006 in Fundraising News, General Fundraising, Nonprofit, Government, Blog

By Andrea Coombes, MarketWatch Last Update: 4:02 PM ET Oct 20, 2006

SAN FRANCISCO (MarketWatch) — Charitable giving got a lot easier for some taxpayers — and harder for others — thanks to some tax-law changes in the recent Pension Protection Act. The good news is taxpayers who are 70 1/2 or older can take up to $100,000 out of their IRA tax-free this year and next, as long as they donate it to a qualified charity.

Meanwhile, taxpayers of all ages face slightly stricter rules when it comes to deducting charitable donations: Next year we’ll have to make sure we document any monetary donations, even if less than $250. And, starting this year, those donating clothing or household goods will need to make sure the items are of “good or better” quality. The real windfall is for those charitable givers who are in their 70s and who’ve got hefty IRA assets. Now they can “take out up to $100,000 per year, give that to charity and not have to include that in income,” said Jere Doyle, senior vice president of wealth management for Mellon Financial’s private wealth management group, in Boston.

(article continues)

Tags: , , , ,