•	The gift date is crucial: Your gift must be made by December 31, 2008. Your check must be dated on or before this date; gifts by credit card must be authorized on or before this date; a stock gift must be credited to Loyola’s account by this date.
•	There are several ways to make a year-end gift: • Make your check payable to Loyola High School • Call us at 313.861.2407x103 with your credit card information. • To donate securities, just call us at the number above and we will provide you with the necessary information.

Older Taxpayers Can Take Advantage of Making
Tax-Free Donations from their IRAs

When it comes to making contributions to Loyola High School, older taxpayers have an advantage: IRA gifts can currently be made without all the tax ramifications they used to have. Additionally, by giving now, older donors can see, firsthand, the benefits of their generosity.

The Emergency Economic Stabilization Act of 2008 extended The Pension Protection Act of 2006 which allows people age 70 _ and older to make tax-free cash gifts from their traditional or Roth IRA totaling up to $100,000 in 2008 and 2009 to qualified charitable organizations such as Loyola High School.

This legislation is good news for people age 70 or over who want to make a charitable gift during their lifetime from their retirement assets but who have been discouraged from doing so because of the income tax penalty. IRA assets can have substantial income tax and estate tax penalties attached to them.

For donations made in 2008:

A lump sum distribution from an IRA, given as a charitable gift, is not included in a person’s adjusted gross income (AGI), and therefore not subject to taxation for either federal or Michigan purposes. There is, however, no up front income tax deduction available for such a charitable gift; but none is needed since the distribution was not included as income.

The requirements are as follows:
• You must be 70 or older
• The transfer must go directly from your IRA to Loyola High School
• Your gift cannot exceed $100,000

For example, suppose 73 year old John has a $600,000 IRA and wants to support the work of Loyola High School in 2008. Under the Pension Protection Act and the Emergency Economic Stabilization Act, John can direct his IRA administrator to directly transfer $50,000 from his IRA to Loyola. This transfer creates at least three tax consequences for John:

1.	He will not have to report this distribution as income on his federal and Michigan tax returns (but cannot claim a charitable deduction from this gift);
2.	The $50,000 transfer reduces his required minimum distribution amount for 2008; and
3.	His gross estate for federal estate tax purposes is reduced by $50,000.

For donations made after 2009:

A lump sum distribution from an IRA, given as a charitable gift, will be included in the person’s AGI and, accordingly, subject to taxation for both Michigan and Federal purposes.

The corresponding federal charitable contribution deduction for a gift to Loyola is limited to 50% of the donor’s AGI, and there is no corresponding Michigan income tax deduction.

Of course, since state and local tax laws may differ regarding the inclusion of an IRA distribution in taxable income, potential donors should consult their personal legal and financial advisors before making a gift from their IRA.

Tax Effective Donations from Sources Other Than IRAs

Making charitable gifts of assets that have appreciated, such as marketable securities held for more than one year, are also a tax-effective method of making charitable donations. You are allowed to deduct the full fair market value of the securities while avoiding the long-term capital gains tax that would have been applied to the appreciation.

For gifts of assets such as marketable securities that have depreciated and are worth less now then when the asset was purchased, you can take a capital loss on your tax return by selling them and contributing the proceeds.

Remember: when making gifts of assets such as securities, we recommend you consult your financial advisor to determine your tax consequences.