Features, Advantages, and Benefits:

• Although no charitable deductions are allowed, gift amounts will not be included in your 2007 adjusted gross income.
• You may choose to make charitable distributions in any amount up to $100,000 in 2007. For a couple with separate IRAs, each person can give up to this amount.
• The limits on contribution deductions (50 percent of adjusted gross income for cash gifts) do not apply to IRA gifts.
• IRA contributions will count toward the mandatory annual distributions required of donors over 70 1/2, providing a means to reduce your 2007 taxes.
• You can take advantage of this new giving opportunity even if you don’t itemize your tax deductions.

We look forward to offering assistance in completing a gift from your IRA before the December 31, 2007, deadline. For more information on this special giving opportunity, you can call Principia’s Development Office at (800) 218-7746, ext. 3138 or 3106.

With the passage of the Pension Protection Act of 2006, donors received a new option for making a lifetime gift from an IRA by December 31, 2007. Individuals age 70½ and older can now make tax-free gifts to public charities such as Principia. Since the passage of this new law, Principia has received IRA gifts in support of priority areas such as the Annual Fund, Student Aid, and the new College Athletic Complex.

The Next Step

After consulting with your financial and tax advisors to determine if the IRA charitable rollover is right for you, the next step is to contact your IRA account custodian to request instructions for making a qualified charitable distribution to Principia. Most custodians will have a written form for you to complete a gift transfer directly from your IRA account. Otherwise, you must send a written request to your custodian. We have prepared sample letters of instruction for your reference and use.