New Jersey Institute of Technology’s planned giving benefactors play a special role in shaping the university’s future direction and accomplishments. The individuals who make gifts in the form of trusts, annuities and pooled income funds receive a lifetime income with the remainder to NJIT, and bequests naming NJIT as the beneficiary provide endowments for generations of students. Our planned giving benefactors are recognized as members of the 1881 Society. If you have already included NJIT in your estate plan, please e-mail Khatmeh Osseiran-Hanna at osseiran@njit.edu so we may properly thank you.
Above Left: The Gow family has included NJIT in their estate plans and established a gift annuity in 1992 to benefit the general endowment
Above Right: Diane and Mal Simon established a gift annuity which, when it matures, will benefit the Simon Endowed Athletics' Scholarship

On Aug. 17, 2006, President Bush signed into law new tax incentives for charitable gifts from donors who are 70 or older. The Pension Protection Act of 2006 encourages financial support of charitable organizations across the United
States.

Under the law, you can make an outright gift using funds from your individual retirement account (IRA) without undesirable tax effects. Previously you would have had to report any amount taken from your IRA as taxable income. You could then take a charitable deduction for the gift, but only up to 50 percent of your adjusted gross income. In effect, this caused some donors to pay more in income taxes than they would have if they hadn’t made a gift at all.

Fortunately, now these IRA gifts can be accomplished simply and without tax complications. Plus, you can make the gift now—while you are living and able to witness the benefits of your generosity.

You may contribute funds this way if:

You are age 70 or older
2005-06 Malcolm Morse Biomedical Graduate Fellow Anne Marie Petrock (left) with Trudy Morse. Trudy established this fellowship with a lead annual gift and charitable gift annuity.
The gift is $100,000 or less each year
You make the gift on or before Dec. 31, 2006 and on or before Dec. 31, 2007
You transfer funds directly from an IRA or Rollover IRA
You transfer the gift outright to one or more public charities, but not supporting organizations or donor advised funds

How the New Law Works
Pat, aged 80, has $450,000 in an IRA and has pledged to give the New Jersey Institute of Technology $75,000 this year. If Pat transfers $75,000 to NJIT from the IRA, she will avoid paying income tax on that amount. She cannot, however, claim a charitable deduction—it is a pure “wash.” Pat has found an easy way to benefit us without tax complications.

If she desired, Pat could give more than $100,000. The legislation allows a maximum $100,000 gift in both the 2006 and 2007 tax years. So Pat could give $100,000 each year. If her spouse has an IRA and is 70 or older, he can also give up to $100,000 each year.

 How to Make a Gift
Contact your IRA custodian to transfer your desired gift amount to a charitable organization.

For More Information
It is wise to consult tax professionals if you are contemplating a gift under the new law. We also have additional information available. Please e-mail Khatmeh Osseiran-Hanna at osseiran@njit.edu for more information.
Gil Glass '41 and Barbara Hellman (center) with the Glass-Albert Dorman Honors College Scholars. Gil has set up several charitable remainder annuity trusts to benefit the Gilbert W. Glass Leadership Fund.