OTHER WAYS TO DONATE TO
HOPE IN NORTHERN VIRGINIA, INC.

Donations from Traditional IRAs and Roth IRAs at AGE 70.5

Donating from your IRA and taking advantage of the Charitable IRA Rollover Act ---
Legislation passed in August, the Pension Protection Act (PPA) of 2006, allows individuals age 70.5 and older to make tax free gifts of up to $100,000 per year from their traditional IRAs and Roth IRAs for 2006 and 2007. The intent is to create an opportunity for donors to give on a tax-free basis from certain retirement accounts. The gifts must be made directly to a public charity such as HOPE in Northern Virginia, Inc.

December 31, 2006 was the deadline to take advantage of 2006 distributions. Any distributions for 2007 can be taken care of at any time during the year; the law expires on 31 December 2007.

Stock Donations

As a result of strong market gains this year, some supporters have made inquiries about giving stock to HOPE in Northern Virginia, Inc. Gifts of stocks are readily (indeed, graciously!) accepted by HOPE. Giving stock is almost always a more tax-wise way to make a charitable contribution by offering the following two-fold tax savings on stocks held more than one year: (1) the donor avoids paying any capital gains tax on the increased value of the stock; and (2) the donor receives an income tax deduction for the full current value of the stock at the time of the gift.

Example: Stock is donated with a fair market value of $1,000 that was purchased more than a year ago for $100. The donor makes a charitable deduction of $1,000. Yet there is no capital gains tax on the $900 appreciation.

Any questions?

Please consult your tax attorney or your financial advisor in regard to IRA, Roth IRA and stock donations.