Terra College Foundation
Great News for IRA Qualified Charitable Distributions
Charitable contributions at the end of the year are always welcomed, yet tax implications have sometimes been uncertain.  This year there is good news regarding the IRA rollover - Signed into law on December 18, 2015, the Protecting Americans from Tax Hikes (PATH) Act of 2015 makes permanent the tax advantages of qualified charitable distributions (QCDs) from IRAs.

This means that donors ages 70½ or older can transfer up to $100,000 from their IRAs directly to qualified nonprofits such as the Terra College Foundation, a 501(c)(3) charitable organization.  Donors will not have to pay income tax on the money withdrawn!

Among the benefits to donors for making a gift via an IRA charitable rollover:
  • Avoid taxes on transfers of up to $100,000 from an IRA to the Terra College Foundation.
  • Satisfy required minimum distribution for the year.
  • Reduce taxable income, even if donors do not itemize deductions.
  • Make a gift that is not subject to the 50% deduction limits on charitable cash gifts.
Here is a summary of the rollover rules for direct transfer:
  1. The donor must be age 70½ or older on the day of the gift.
  2. The donor may transfer up to $100,000 directly from the donor's IRA to one or more qualified charities, such as the Terra College Foundation. This applies only to IRAs and not to other types of retirement plans.
  3. The direct transfer generates neither taxable income nor a tax deduction, so even if donors do not itemize tax deductions, they can still benefit.
  4. The gift can satisfy all or part of the required minimum distribution for the year, but will not be subject to the deduction thresholds.
  5. The transfer can be used to pay on a pledge, but cannot be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
  6. The donor may not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
  7. If donors made a gift of up to $100,000 directly from an IRA in 2015, or if they have check-writing privileges for their IRA, the gift will qualify under the new law.
I would urge you to share this news with your family and friends this holiday season, and to encourage donations to the Terra College Foundation.  Secure donations may also be made online at foundation.terra.edu.

As always, please consult with your financial planner before making charitable contributions.
Terra College Foundation funds equipment requests of nearly $130,000
Students in a number of programs at Terra State Community College will soon have updated equipment to work with thanks to the Terra College Foundation and its generous donors.

The Foundation board recently approved spending $129,238 on eight requests.  These purchases were made using the following Foundation funds: Equipment Endowment, Coldiron Equipment Fund, Allied Health/Nursing Program, Kern Center Technology and Equipment, Thomas and Dorothy Kern Instructional Equipment Endowment and the Music Program Fund.

"We really appreciate being able to assist these programs," said Cory Stine, Ph.D., Executive Director, Terra College Foundation. "And to see concrete ways that our students will benefit is very rewarding. We can't thank our donors enough."   The Terra College Foundation initiates a variety of fundraising activities to help support the students and educational programs of Terra State. Donations fund scholarships for students and equipment for the college's academic programs.
click on the image for Terra State's video card

Happy Holidays from Terra State Community College!
Thank you for your continued support of the Terra College Foundation and Terra State Community College.  We are fortunate to have donors like you!  Please contact us if you would like further information.

Sincerely,
Cory Stine, Ph.D.
Executive Director and Vice President for Institutional Advancement

Visit our website foundation.terra.edu or email foundation@terra.edu
Call 419.559.2261