New Law Enables Taxable IRAs As Charitable Donations

WILTON — With the deadline for making tax-deductible charitable donations for the 2006 tax year fast approaching, the American Cancer Society reminds holiday gift givers both young and old that charitable contributions are a great way to give and receive.

The Internal Revenue Service qualifies charitable donations made between August 28 and December 31 as tax deductions. That makes the winter holidays a perfect time to truly embrace the season of giving and get a little tax relief in return.

A new law this year makes it easy for older individuals to turn their taxable income into a charitable donation.

The 2006 Pension Plan Act allows individuals age 70½ years and older to donate the taxable potion of their IRA to a public charity. This new law lets individuals donate up to $100,000 to qualifying tax-exempt charities like the American Cancer Society without triggering any federal income taxes.

This new law offers a great convenience to seniors because it streamlines the charitable giving process with an immediate charitable contribution deduction rather than worrying about itemized deduction restrictions. The law, however, is only in effect until 2007.

For young adults who may think charitable giving is beyond their means, the American Cancer Society has a way to donate to a worthy cause and help in their cause in finding a gift from the heart. Making a donation to the American Cancer Society in honor of a friend or family member sends a message that the individual is an inspiration to give back to his or her community and help others.

The person named in the charitable donation will receive a card from the society acknowledging that the gift is a contribution to the fight against cancer. Donations can be made in any size.

Those looking to establish a legacy of charity and humanitarianism can give a percentage of their estate to the society or specify a dollar amount in their will. Bequests to the American Cancer Society provide a major portion of the organization’s funding for cancer research, education, advocacy, and patient service programs. Donors can specify that their bequest be used for all of these programs or individually.

For individuals 60-years-old or older, the society offers ways to make fixed payment for life with its gift annuity contract. Individuals can make a gift of cash or securities, such as stock, to the American Cancer Society in fixed payments for the remainder of their lives. The size of the payments depends upon age and donors will receive a charitable tax deduction for part of the donation amount.

For more information about the American Cancer Society, to make a donation, or learn more about planned giving, visit www.cancer.org or call 800-ACS-2345.

The American Cancer Society is dedicated to eliminating cancer as a major health problem by saving lives, diminishing suffering and preventing cancer through research, education, advocacy, and service. Founded in 1913 and with national headquarters in Atlanta, the society has 14 regional Divisions and local offices in 3,400 communities, involving millions of volunteers across the United States.