The stock market’s successful year, marked by the record breaking performance of the Dow, provides a compelling reason to consider using appreciated stocks or mutual funds as gifts to charity this year. These gifts earn an income tax deduction at their full fair-market value and donors also avoid paying any tax on the capital gain—a double tax benefit!

Each year Susquehanna University receives dozens of securities gifts that often total in the hundreds of thousands or even millions of dollars. Since donors find stock gifts to be most advantageous when the market is up, this may be a very good year for the University and for donors.

Most gifts of securities are made by a convenient and fast electronic transfer from a donor’s account to Susquehanna’s account. For more information about making gifts of securities please send an email to Carol Sanders in the Development Office at sandersc@susqu.edu indicating your interest.

These gifts can be used for the Changing Lives, Building Futures campaign which will ultimately help build a stronger and more resilient University.

Under a new tax law individuals who have reached age 70 ½ may make gifts to charity directly from their Individual Retirement Accounts (IRA). Susquehanna has already received four generous gifts under this new law totaling more than $50,000. Several other alumni and friends have inquired about using the law’s special provision for IRAs.

This is a limited opportunity since the current law is in effect only for 2006 and 2007. Interested individuals are urged to discuss this with their tax advisor or financial planner.

Key benefits of this law:

• Distributions are excluded from taxable income up to a maximum of $100,000 (per individual, per year);
• Funds transferred from your IRA to Susquehanna University may count toward your annual required minimum IRA distributions;
• Distributions are not subject to the limitation on charitable deductions for cash gifts of 50% of your adjusted gross income (AGI);
• Convenient, direct payments from your IRA to Susquehanna University;
• Preservation of stocks, cash and other assets that you might have used for gifts.
• Gifts can be directed to the SUF or to any campaign priority including endowments and capital projects like the planned new science facility.
• Even if you don’t normally itemize your deductions, you can give directly from your IRA and achieve the same benefits as if your gift was fully deductible.

Certain limitations apply. These non-taxable charitable distributions:

• Can only be made in 2006 and 2007 under the current law;
• Must be made directly from the IRA custodian or trustee to a charity such as Susquehanna University – otherwise they are considered a taxable distribution to you;
• Cannot be made to a supporting organization or a donor advised fund;
• Must be outright; for example, not used to establish a gift annuity or charitable remainder trust.

To discuss giving opportunities under The Pension Protection Act of 2006 or by other means, please call toll free at (800) 353-7970 or directly at (570) 372-4356. A member of our staff – Doug Seaberg, Kim Andretta and Carolyn Coldren – can help you understand your various giving choices.