Meadville Tribune

July 31, 2007

There is good news in the world of philanthropy. Americans are giving more and have more ways to give than ever before. Giving USA recently published their study of charitable giving for 2006.  A record amount was given to public benefit organizations such as churches, hospitals, foundations, arts groups and social service providers. Donors gave nearly $12 billion more than the previous year for a total of $295 billion. The research suggests the increase in giving is proportional to the increase in wealth caused by last year’s 10% rise in the stock market. It’s wonderful that people are using their good fortune to help make the world better in so many ways.

While a majority of people give cash, knowledgeable donors are giving in ways that benefit them as well as charity. Many whose stock has risen in value are giving this appreciated property. In doing so, they avoid the capital gains tax they would have incurred had they instead sold the stock.

More people are giving through local community foundations like the Crawford Heritage Foundation to meet their philanthropic goals. A report from the Foundation Center shows that community foundations gave 13% more in 2006 than the previous year due to increases in individual giving and the value of their investments. Most of the money given to a community foundation is permanently invested. Grants are made from the investment each and every year to address a donor’s exact charitable concerns. Over the course of time, the amount granted will far exceed the original amount given.

People age 70-1/2 and older are taking advantage of a provision in the Pension Protection Act of 2006 allowing them to make charitable gifts from an individual retirement account (IRA) directly to charity. Almost a full year after its inception the National Committee on Planned Giving reports that more than $75 million dollars in IRA assets have been given to charity. The IRS treats these distributions to charity as non-reportable events. No tax must be paid since the money goes directly to charity. Unfortunately, people will only be able to make gifts from their IRAs the through December 31, 2007 unless the legislation is renewed.

The nonprofit community is lobbying to make permanent the ability to give IRA assets and for additional changes to rules regarding charitable gifts of retirement assets. Please contact your federal legislators to voice your support for these efforts. If you’re eligible, talk to your financial advisor about making a charitable gift from your IRA before the year is out.

I encourage you to give some thought to your charitable giving. Express gratitude for your good fortune by giving a little more to those organizations making a difference in our community. Contact the Crawford Heritage Foundation for more ways to make the most of your philanthropy.