Effective August 17, 2006 the Pension Protection Act of
2006 (PPA 2006) was signed into law by President Bush.
This is a good incentive for donors who are 70-1/2 years
old or older to use money in their traditional or Roth IRAs
to make charitable gifts to tax-exempt organizations during
2006 and 2007.

The law provides for otherwise taxable distributions of
up to $100,000 from IRAs to tax-exempt organizations
to be excluded from gross income. The gift to charities
must go directly from the IRA and the amount will count against a donor’s minimum required distribution. The IRA
withdrawal to the charity must still be reported as income.
In addition gifts cannot be made for gift annuities or
charitable remainder trusts. As in any law, there are some
limitations so we encourage you to contact your tax
adviser to find out how this might work for you. Congress
will revisit this law again to review what should take place
with IRA gifts to charities in the year 2008 and beyond.

If you didn’t take advantage of this in 2006, please consider
this when making a gift to School Sisters of Notre Dame in
2007. This year is your last chance to make such a gift
unless the law is extended. Be sure to ask your broker to
state your name on the check when making the donation,
as the checks are issued under the investment company’s
name. We also want to be able to thank you for your
generous donation.

Click here to contact
our Development
Office for more
information