Congress reinstated a law that allows a donor to make a tax-free gift from their individual retirement account (IRA). Known as the IRA charitable rollover, this law no longer has an expiration date so a donor is free to make annual gifts to Alpha Kappa Psi from their IRA this year and well into the future.

The law allows individuals 70½ and older the ability to transfer up to $100,000 from their individual retirement accounts directly to a qualified charitable organization without being subject to income taxes on the distribution.

Gifts of stocks or other securities offer a two-fold tax savings. First, the donor avoids paying any tax on the increase in value of the stock since its purchase. Second, the donor receives a tax deduction for the full fair market value of the stock at the time of the gift.

Most of the gifts made to the Foundation are in the form of cash through a check written by the donor. Making contributions by using a credit card has become a very popular method of contribution. These gifts are considered the same as a cash gift for tax purposes.

Gifts-in-kind (art objects, equipment, real estate, etc.) are welcomed by the Foundation. However, it is necessary to review such gifts before hand to ensure that acceptance will not involve financial commitments or other obligations disproportional to the usefulness of the gift itself. In most instances, gifts-in-kind will be accepted only if they can be liquidated and the value added to the Foundation’s asset base.

A charitable remainder trust offers income, capital gain and estate tax benefits to the donor while creating a generous gift for the Foundation. The donor establishes a trust, from which you or your designated beneficiary(ies) receives life income payments. In the event of the donor’s death, the Foundation receives the principal, or “remainder,” of the trust.

Many people own some form of life insurance because of its unique ability to meet a variety of needs for financial protection. A donor can name Alpha Kappa Psi the beneficiary of a new policy or one they currently own but no longer need. Donors may be able to receive an income tax deduction for annual life insurance premiums and a portion of the value of the policy.

Using retirement plan assets for a gift to Alpha Kappa Psi and other assets for family members can be beneficial to all. Because of the way qualified plans are taxed, at death, relatively little of the assets in the plan may end up in the hands of family members or beneficiaries. These assets not only are included in the gross estate for federal estate tax purposes, but are also taxed when received by the beneficiaries as income in respect of the decedent.