The Emergency Economic Stabilization Act of 2008, passed by the U.S. Congress on Oct. 3, allows donations to be made tax-free from their Individual Retirement Accounts to institutions such as Fort Hays State University.
The act included an extension of the IRA Charitable Rollover, which allows those 70 and one-half years of age and older to make contributions from their IRA to charity without paying income tax from the withdrawal. This extension is effective for IRA transfers made in 2008 and 2009 and allows for the transfer of up to $100,000 each year.
The Charitable IRA Rollover was originally enacted in 2006 but was allowed to expire at the end of 2007.
Brad Botz, director of gift planning at the FHSU Foundation, said alumni and friends may want to take advantage of the incentive by making an IRA transfer to FHSU before the end of 2008.
"For someone who is thinking about giving to FHSU, this might be the perfect opportunity for them to make a contribution from a larger asset such as an IRA rather than dipping into their savings or checking accounts," said Botz.
The donor can decide where his or her IRA transfer is to be allocated within the university. It could be used to establish an endowed scholarship, go toward specific departmental needs, renovations or athletic programs.
Normal IRAs are subject to income tax when voluntary or mandatory withdrawals are made and are subject to estate tax if left to loved ones other than a spouse.
"People who are including donations to FHSU upon their death or through their estates may make that donation now and see the benefits of their generosity when the university needs it most," said Botz.
For more information on the IRA Charitable Rollover or other options of giving to FHSU, contact Botz at (785) 628-5620 or e-mail firstname.lastname@example.org.