DIA News

The big news this year is the enhanced possibility to make charitable gifts through Individual Retirement Accounts (IRA). If you are over the age of 70 1/2 you may want to consider making a gift directly from your IRA. Congress has made it possible to make tax free charitable gifts up to $100,000 a year from your IRA without adverse tax consequences.

The most frequently asked question about the IRA rollover changes is if a donor can use a required minimum distribution to make a gift under the Pension Protection Act. The answer is yes, as long as the required minimum distribution is $100,000 or less a year.

To be counted on your 2006 tax return, the gift must be completed before December 31, 2006. The changes in the pension act also cover the following year, with gifts given by December 31, 2007, counted on your 2007 tax return. The donation must be made directly from your IRA account to us. In addition, donors may choose to make a gift directly to the DIA’s endowment fund at the Community Foundation for Southeastern Michigan (CFSEM). Every $2 of a gift made through the CFSEM receives $1 in matching funds through the Increasing Regional Philanthropy program. This is a wonderful way to help increase the museum’s endowment.