George & Linda Houser Give Retirement Assets through the Community Foundation for the Twin Tiers

November 13, 2007

Uses Recent Pension Act to Unleash Dollars for Charitable Good

Linda & George Houser, residents of Bradford County, are the first in the region served by the Foundation to take advantage of the Pension Protection Act signed by President Bush in August 2006, transferring a portion of her individual retirement account (IRA) into starting Unrestricted Funds for each of the four counties served by the Community Foundation (Bradford, Sullivan, Tioga in PA and Tioga in NYS). These charitable funds will benefit these counties forever.

Because of recent charitable giving legislation, the Houser’s were able to transfer funds directly from her account to the Community Foundation, as a tax-free lifetime gift.

Under former law, IRA holders were discouraged from giving retirement assets to charity during their lifetimes, because all withdrawals from IRAs were subject to income tax—even those given to charity. For this reason, many donors included this type of asset in their wills—but could not experience the joy of giving during their lives.

“We’ve been selecting organizations to support in my will for some time,” said the Housers’. “With this law, it made sense to set these funds up now. We can give more and do it sooner—and experience the fun of giving.”

The Houser’s used their gift to establish the Bradford County Unrestricted Fund, the Sullivan County Unrestricted Fund, the Tioga County, NY Unrestricted Fund and the Tioga County, PA Unrestricted Fund. They hope their generosity will encourage others to give. Every time the Community Foundation makes a grant from these funds, the Houser’s will be again giving back to their community.

In 2006 and 2007, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000 per year. If married, each spouse can transfer up to $100,000 from his or her IRA. As a qualified public charity, the Community Foundation for the Twin Tiers can help donors execute the transfers and choose from several charitable fund options for their gift. Donor Advised Funds do not qualify for tax-free IRA transfers.

“This new incentive is great for donors like the Houser’s because they can use assets tied up in an IRA to make a gift right now and unleash resources into this community that might otherwise be eaten up by taxes,” said Marilyn Bok, Community Foundation for the Twin Tiers Board Chair.

IRA donors may choose from several types of funds available at the Community Foundation. Chief among these are:

• Unrestricted Funds: Donors use this fund to meet ever-changing community needs—including future needs that often cannot be anticipated at the time a gift is made. Our local expertise helps us evaluate all aspects of community well-being. This fund is then used to make a difference where it is needed most.
• Field of Interest Funds allow donors to target gifts to causes important to them: arts, environment, health services, rural education, neighborhood revitalization, children and youth and more.
• Designated Funds are earmarked for a specific nonprofit organization or purpose. These funds provide ongoing funding for a specific nonprofit organization—a senior center, museum or any qualifying nonprofit charitable organization.

The IRA charitable rollover is a limited-time opportunity. The option for $100,000 transfers free from federal tax expires December 31, 2007.

Through philanthropic services, strategic investments and community leadership, the Community Foundation for the Twin Tiers helps people support the causes they care about, now and for generations to come.