New Pension Law Has Charitable Provision

Thanks to decades of deliberate savings, many of today's retirees have significant investments in their IRAs. It is now easier than ever to share some of that wealth with your favorite charity.

In August 2006, a federal law was enacted allowing certain IRA owners to contribute a portion of their retirement savings directly to charity without first declaring the withdrawal as income. This is good news because sheltered retirement funds are often the most highly taxed asset in an estate. The pension protection act can definitely help donors who want to gift a portion of their retirement funds to charity.

New Pension Law Has Charitable Provision In 2006 and 2007, holders of traditional and Roth IRAs who are at least 70 years old can make direct charitable transfers up to $100,000 per year.  This new law makes it easier for certain donors to transform their charitable intent into action now, rather than wait for a bequest or estate gift.

As with any complex gift, donors are encouraged to contact their personal professional advisors.

Donors can also contact Ken Slaney, Chairman of the NECF Asset Development Committee, at 461-6954 for more information.

Community Foundation Funds Nearly $60,000 to Local Groups in 2006

In 2006, the North East Community Foundation granted nearly $60,000 in funds to area charitable organizations. Representatives from these organizations and community foundation board members gathered recently to celebrate the accomplishments of each charitable group. Funds were made possible through the Ralph L. Hartley Fund, the Dorothy Bertges Thornton Fund, and the North East Community Foundation General Fund, all administered by the North East Community Foundation.

The mission of the North East Community Foundation is to assist a diverse group of donors in improving the quality of life in and around North East by creating permanent and flexible endowments making it easy to carry out the donors’ philanthropic interests in a professional and timely manner. The Foundation’s partnership with the Erie Community Foundation ensures that charitable endowments are managed effectively and efficiently.

Local organizations that received grants in 2006 included: Boy Scout Troops #57 and #82, Common Ground Youth Center, Community Nursing Services of North East, Crescent Hose, First Baptist Church, Fuller Hose, McCord Memorial Library, North East Arts Council, North East Food Pantry, North East Historical Society, North East School Scholarship Fund, Penn State Erie/The Behrend College, United Neighborhood Health Care, and Women’s Care Center of Erie County.