Recent economic instability and the efforts of the Federal government to remedy the situation continue to be of concern and interest to area residents and businesses.  Much has been made of the ‘bailout’ of Wall Street, the credit freeze, and the various measures being put in place to stabilize our nation’s economy.

One provision in the Emergency Economic Stabilization Act of 2008, is a two year extension of the Pension Protection Act of 2006.

Under this legislation, an IRA (Traditional or Roth) owner (age 70 ½ or older) may make a direct transfer of up to $100,000 to a qualified charity.  Gifts will qualify for all or part of the IRA owner’s annual required minimum distribution.  As with non-charitable IRA rollovers, a distribution to charity will not be included in the donor’s federal taxable income.  Any IRA owner (age 70 ½ or older) can take advantage of this opportunity regardless of whether or not he or she has already met the Federal limit for cash gifts (50% of adjusted gross income).

The RMH Foundation is a charitable organization eligible to receive gifts under this Act.
“I would recommend that any person thinking of donating to the charity of their choice speak with a tax advisor for guidance,” says Mike David of Edward Jones Investments, and Chair of the Renewing for Health Capital Campaign. “This is the only way that I have found to not only support a charitable organization, but also distribute money out of a Traditional IRA with no tax.  If charity is in your heart, and you truly believe in an organization or a project, and you have the means to do so, this is a wonderful way to donate.”

Don F. Hatten, MD, Honorary Chair of the Renewing or Health campaign, encourages charitable gifts through this or other giving options. “I would rather have my money used here, at home, in our community, for a cause I support, rather than send it to Washington,” Dr. Hatten said in a recent speech.

Karen Marie Jameson, Director of the RMH Foundation, noted that nearly a dozen gifts that have been received so far during the Renewing for Health campaign have been made via this method.  Other ways to donate for persons who may not qualify for the Pension Protection Act of 2006 include pledges that may be paid in cash over a set amount of time and gifts of grain or appreciated stock.

“Individuals who make a gift of grain or appreciated stock to the RMH Foundation receive a tax credit for the total amount contributed.  There is no personal tax liability for the individual making the gift.  The RMH Foundation then sells the donated grain or appreciated stock,” states David.
For further information on how you may be able to contribute to the Renewing for Health campaign, contact the RMH Foundation office at 618-395-6088.