Year End Giving
The House passed the Emergency Economic Stabilization Act of 2008. That legislation included a tax extension for those who wish to make a charitable contribution. This becomes a win-win situation for you and for the non-profit organization of your choice, like Toccoa Falls College.
There were four principal areas that were included in this legislation which prompted President Bush to sign this.
1. Economic Bailout of Bad Debt. The Treasury Department was given the authority to spend up to $100 billion initially with the option of increasing that to $700 billion. The intent is to purchase debt securities and struggling major financial institutions at a discount. The second part of that is the increase FDIC insurance on all bank deposits from $100,000 to $250,000.
2. Tax Extenders. This section should be of particular importance to you. This allows IRA owners age 70-1/2 the option of rolling over up to $100,000 per year to public charities, such as Toccoa Falls College, tax free. This was extended through December 2008 and December 2009. This is especially useful for those who do not itemize. Because about 71% of taxpayers age 71 and over use the standard deduction, they can save taxes by making 2008 gifts from their IRAs and then taking a lower taxable required minimum distribution (RMD) from their IRA.
3. Energy Incentives. This act adds incentives for solar, wind, and other renewable energy methods.
4. Mental Health. This bill expands coverage of mental health conditions by placing them on the same level as other types of illnesses.
Please contact Sharon Sanderson, Director for Alumni and College Relations, at 706-886-6831, ext. 5210, if you would like more information concerning these and other gift planning ideas.
