The Pension Protection Act of 2006 presents a financial incentive and the potential for a meaningful, immediate gift to The University of Toledo.
“The IRA Rollover provision allows IRA owners age 70 1/2 or older to directly transfer up to $100,000 to qualified nonprofits like the UT Foundation,” notes Nancy Koerner, J.D., UT director of planned giving. “The provision only extends through 2007, so donors must transfer the gift by Dec. 31.”
Distributions, which must be from an IRA directly to the charity, have the advantage of counting toward the required minimum distribution for the year. “Distributions do not count as taxable income to the donor or as a charitable tax deduction,” said Ms. Koerner. Therefore, donors benefit even if they do not itemize deductions or reside in a state that allows charitable deductions, or have maxed out their deductions.
Frank D. Jacobs, an attorney with Eastman & Smith, was among the first UT donors to take advantage of the tool. A long-time UT donor, his $25,000 IRA Rollover gift allowed him to express his gratitude to UT in a more significant way.
“The University of Toledo trains, educates, enriches and enlightens students and citizens both near and far,” said Mr. Jacobs (Bus ‘56). “Just think what Toledo would be like if the University had not been here to provide those opportunities.”
After graduating summa cum laude and first in his class at UT, Mr. Jacobs applied to law schools. He was admitted to Yale and Michigan but not to Harvard, his first choice. “I learned that Harvard felt UT was a school of ‘average academic standing,’ and that my record here was not necessarily indicative of future success.”
Though he went on to graduate from Michigan’s law school in 1959 and has practiced law successfully in Toledo for 45 years, Harvard’s remark stuck with him.
“Because of that, I made it my business to help make sure UT is better than some outsiders believe,” said Mr. Jacobs, who has also been an active volunteer for UT.
Donors like Mr. Jacobs can use giving tools to their advantage, notes Ms. Koerner, and at the same time can benefit UT students, programs, patients, and the entire community.
For more information on this and other planned gift opportunities, contact your tax advisor or Nancy Koerner at (419) 530-5412 or nancy.koerner@utoledo.edu