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~ January 2007 ~ Topics

US Rules Change on Donations
Online Volunteering
Association for Volunteer Resource Management

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US Rules Change on Donations

Volunteers are quite often donors to organizations. The new "Pension Protection Act" has changed some of the rules. This is a brief summary of areas of interest to volunteers and their organizations. Be advised it is not legal advice and individuals should consult tax advisers or an attorney for greater detail. It helps however, if the person knows what to ask about.

Contributions Made Directly from IRAs:

• In 2006 and 2007, if you are age 70 1Ê2 or older and have an Individual Retirement Account, you can donate up to $100,000 each year from your IRA to charity. The distribution will not be taxed as income as long as: the charity is eligible to receive tax-deductible contributions, the charity is not a section 509(a)(3) supporting organization, and the withdrawal goes directly to the charity. You do not need to itemize your taxes to take advantage of this provision; if you do itemize, however, you cannot also take the contribution as a deduction.

Used Clothing or Household Items:

• Used clothing or household items donated after August 17, 2006, must be in "good" condition or better to be deductible. An exception is a gift worth more than $500, which can be of lesser quality but which must be documented with a "qualified appraisal" included with your tax return. For information on determining the fair market value of your donations, see the Salvation Army's on-line guide (http://www.satruck.org/ValueGuide.aspx), or visit your local Goodwill or other charity thrift store.

Gifts of Art, Collectibles, and Valuables:

• There are new rules for deducting "fractional gifts," i.e., shares of an artwork, collectible, or other valuable, made after August 17, 2006.

Start Collecting Those Receipts—for Everything:

• Beginning January 1, 2007, you must have a "bank record" or receipt for all monetary contributions you deduct. No more deducting that dollar you put in the kettle or collection plate.

Other provisions affect deductions for conservation easements, conservation contributions and rehabilitation tax credits, façade easements, contributions of vacant land in historical districts, and contributions of exempt use property. Consult your tax adviser or attorney for more information.

The following press release was provided to Volunteer Today from the Association for Volunteer Resource Management.