More and more people are considering IRAs as an asset from which to make charitable gifts. The Pension Protection Act of 2006 signed into law on August 17, 2006 by President Bush encourages this consideration by enabling individuals to use funds from IRAs to make a lifetime charitable gift free of tax obligations.

You may make a gift to Hospice in this manner if:

• You have attained the age of 70% or older
• Your gifts do not total more than $100,000 in any year
• Your gifts are made on or before December 31, 2007
• Funds are transferred directly from an IRA or Rollover IRA
• You transfer the gifts directly to a public charity (charitable trusts are excluded)

Please contact Hospice and your estate planning advisors if you would like more information on this exciting philanthropic opportunity.

It is only natural when considering supporting a favorite charity that your thoughts turn to gifts of cash. However, it may be beneficial, from estate management and tax perspectives, to consider appreciated assets, including real property and securities, that can provide a double benefit.

In a hypothetical scenario where a donor is in the 35% federal income tax bracket and has the option of making a gift of a $200,000 piece of real estate (with a $50,000 cost basis) or an outright gift of $200,000 in cash, the actual cost of the gift of real estate is $107,500 ($200,000 less $22,500 in avoided capital gains taxes and $70,000 in income tax) versus $130,000 ($200,000 less $70,000 in income taxes) for the outright gift of cash.

If you are considering a gift of this type, we recommend, as always, that you check with your estate planning advisors and with Hospice before completing the gift.