Considering making a major gift to MSVF?

19 July 2007

Have you been waiting for the right time to make a substantial gift to MSVF? The Pension Protection Act (PPA) of 2006 may create an opportunity for you to make that gift sooner than you planned.

The PPA allows owners of traditional IRAs to direct sums up to $100,000 from these accounts to a qualified charity such as MSVF without having to recognize these distributions as income for tax purposes. The PPA is possible under the following conditions:

• Persons making distributions must be at least age 70 ½;
• The IRA distributions must be made in 2006 or 2007;
• The gift must go directly from the IRA to MSVF without passing through the donor's hands; and
• The gifts must be outright and not for a gift annuity or charitable remainder trust.

Giving to MSVF from your IRA may count toward your IRA's minimum distribution level for 2007. The IRA distribution will earn no charitable deduction, but does allow the donor to avoid taxation on any distribution that otherwise would have been taxable.

Simply direct your IRA custodian to distribute your desired amount (up to $100,000) direct to MSVF. For more information on taking advantage of the PPA, contact MSVF at foundation@msv.org or 804 | 377-1049