Congress recently enacted legislation creating an attractive tax incentive for older Americans to make charitable gifts from IRA accounts. Donors can now make gifts to Providence College using distributions from their retirement accounts—and they are tax free.

“The new law is a great way to benefit Providence College through a means that didn’t exist before,” said Joseph P. Brum ’68, special assistant to the president for development projects. “The window of opportunity to make these tax-free contributions is only this year and next.”

Below are other details about the tax incentive:

• Donors must be age 70½ or older.
• Tax-free contribution amounts can be up to $100,000 in either 2006 or 2007.
• Any amounts donated in this manner—up to the $100,000 maximum—count towards the IRA minimum distribution requirement for the year.
• Gifts must be transferred directly to the qualified charities from IRA or rollover IRA accounts.
• Tax exemption does not apply for IRA distributions used for charitable gift annuities, remainder trusts, donor advised funds, or private foundations.

To take advantage of this tax-free opportunity to help PC with IRA funds normally subject to taxation, call your IRA custodian to arrange for a direct transfer. If you need assistance or wish to get more information from the College, contact Brum at (401) 865-2416 or joebrum@providence.edu.