LETTERS: New law helps you support favorite charity

From Marc Vaillancourt
Development director,
Southwest Initiative Foundation

As a rural community foundation — a public nonprofit organization — the Southwest Initiative Foundation understands the important role of our region’s charitable organizations.

Service groups help meet basic needs of our neighbors. Environmental organizations protect our natural resources. Youth programs provide volunteer experiences and scholarship opportunities. SWIF helps entrepreneurs develop businesses, promotes local ownership of wind energy projects, provides programs to ensure our youngest children have a healthy start, administers community foundations to enrich local quality of life and much more.

Now, new legislation provides a great opportunity for people to continue supporting our organizations by gifting a portion of their IRAs tax-free to charity. The Tax Extenders Bill was included in the $700-billion Emergency Economic Stabilization Act signed by President Bush in September.

If you or someone you know are required to receive minimum distributions from an IRA but do not need the money for personal use, consider using those funds as a charitable gift.

You will not pay income tax on the IRA gift, but you cannot claim it as a charitable deduction.

People who are 70 or older may transfer up to $100,000 in both 2008 and 2009 from IRAs directly to charity without incurring federal income taxes today or estate and federal income taxes in the future. If married, each spouse can transfer up to $100,000 from his or her IRA.

Transfers from IRAs to the Southwest Initiative Foundation, including our community foundation and designated fund partners, qualify for this tax-free transfer. You may also consider giving IRA assets to your place of worship, local food shelf and so many other organizations.

I urge you to support your favorite charity through this opportunity. Please call the Southwest Initiative Foundation at (800) 594-9480 or (320) 587-4848, visit www.swifoundation.org, or contact your tax advisor for details about this legislation, which expires Dec. 31, 2009.

Imagine the immediate impact your generosity will have on our communities in southwest Minnesota!