There are unique opportunities again this tax year for you to enhance your contribution to the Alpha Chi Rho Educational Foundation! The Financial Rescue Package Bill includes a two-year extension of the IRA Rollover Provision, which was included in the Philanthropy Protection Act of 2006. The bill provides for individuals who have attained the age of 70 ½ the ability to use up to $100,000 of IRA assets they may own to make an outright gift to public charities, including the Alpha Chi Rho Educational Foundation.

There is no income tax deduction for such a distribution to charity, but you would not include the IRA distribution as income for taxation this year given the withdrawal to charity. This distribution would count towards your annual mandatory distribution from your plan. This is a great way for you to endow your annual support of the Alpha Chi Rho Educational Foundation with IRA assets that you don’t foresee needing to use this tax year.

This extension applies retroactively to January 1, 2008 and will apply to gifts made from that date through December 31, 2009. This option is only available for individuals 70 ½ years of age, who direct their plan custodian to make these distributions directly from their IRA to one or more public charities. The law provides that you can give up to $100,000 in each year, and a husband and wife can both give that full amount this year. The law also stipulates that, in order to qualify, the distribution cannot be made to a donor-advised fund, supporting organization, or private foundation; only public charities such as the Alpha Chi Rho Educational Foundation qualify.

If after you speak to your financial / tax advisor, you would like to make a contribution to the Alpha Chi Rho Educational Foundation, please feel free to contact Shane McGoey, Director of Development or Scott Carlson, Chief Executive Officer at (732) 988-0588 or by e-mail at smcgoey@alphachirho.org or scarlson@alphachirho.org.