Treasury Report on Supporting Organizations and Donor Advised Funds Due By August 16, Pension Protection Act of 2006, §1226
Section 1226 of the Pension Protection Act of 2006 directed Treasury to study the organization and operation of donor advised funds and supporting organizations and report back to Congress no later than August 16, 2007. Specifically the Treasury was directed to look at the income, gift, and estate tax deductions for these entities, the need for required distributions, tax policy consistency when a donor is allowed to retain rights or privileges in donated funds, and other related issues. Planners working with families to establish a family philanthropy entity should wait for this report before making final recommendations to clients. A full review of the report and legislative implications will be covered in the next quarterly newsletter.
National Committee on Planned Giving Encourages Extension of IRA Lifetime Transfers with Report on Distributions Under the Pension Protection Act of 2006, www.ncpg.org
The House (H.R 1419) and Senate (S. 819) versions of the Public Good IRA Rollover Act of 2007 are still alive although their legislative status has not changed since the last newsletter. To generate support for extending and expanding the IRA Rollover legislation through the Public Good IRA Rollover Act, the National Committee on Planned Giving reported its member charities have received 4,193 IRA gifts totaling $75.13 million (average of $17,917) from the August 17, 2006 date of enactment through June 4, 2007. While this figure was gathered from polling members and does not include all gifts under the act, NCPG hopes the report will raise awareness of the impact of the 2006 legislation and encourage Congressional action.