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Articles Tagged with donations

By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

This is that time of year when we all start thinking about taxes – and how to pay less. We’ve often gotten the news from our accountants that perhaps our refunds won’t be as large as we’d like or that we owe. Ugh to both.

This is a good time to consider if your business can be more charitably minded, and perhaps help you pare back the tax burden next year.

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By Nathan Vinson, Attorney

English, Lucas, Priest and Owsley, LLP

IRA gift provisionOver the past decade, Congress has passed a law – usually at the last minute – that allows for gifts directly from Individual Retirement Accounts to charitable organizations with favorable tax treatment. The gifts can be up to $100,000 to qualifying organizations, but it has to be made directly to the charity. The IRA gift provision has been a popular way for some to give to their favorite organizations, for two key reasons:

  • The gift counts towards your required minimum distribution from your IRA for the year. As you may know, seniors ages 70.5 and up are required to take a minimum distribution from their IRA each year.
  • The gift is excluded from taxable income. The money won’t be included in your taxable income (as it would otherwise) if the money is paid directly to the qualifying charity.

Only those who are 70.5 or older can take advantage of it.

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By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

oopsIn fundraising and higher education circles, the imminent closure of Sweet Briar College in rural Central Virginia has been much-discussed. This small, women-only college has existed for nearly a century and has educated generations of women. But enrollment has declined and school’s board of trustees announced that this year’s graduating class in May will be its last.

One alumnae, Teresa Tomlinson, the mayor of Columbus, Georgia, noted that she had told college officials she was going to leave $1 million to Sweet Briar in her estate, and they greeted her news graciously and pleasantly, full of thank you’s and personal notes — and then announced two weeks later the school was closing. The mayor said she was baffled why school officials didn’t disclose this to her when she told them about the gift.

Even if the school changes course again and decides to remain open, those who were going to leave money to the college are probably going to be reluctant to do so again. But what would happen if Sweet Briar College was to receive a gift but then the college closed and the will could not be changed?

This happens from time to time with colleges, non-profits and other organizations that are likely to receive bequests from alumni and supporters. The foundation you wanted to support could have merged, changed its goals, re-branded as something else entirely or simply shut its doors. Then what?

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