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KETRA provides significant tax advantages for end-of-year charitable giving
The Katrina Emergency Tax Relief Act of 2005 (KETRA)
After Hurricane Katrina, Congress passed legislation creating special tax incentives to encourage charitable contributions made in cash to public charities between August 28, 2005 and December 31, 2005.
Prior to KETRA, a taxpayer who itemized deductions could deduct charitable contributions to public charities only up to 50% of his or her adjusted gross income (AGI). This new legislation temporarily lifts the 50% limit and allows an itemizing taxpayer to deduct up to 100% of his or her AGI.
KETRA tax incentives apply to charitable gifts made for any purpose, including special initiatives at NIU such as the Barsema Alumni and Visitors Center, the Academic and Athletic Performance Center, and other scholarship, programmatic, or capital support.
Who Benefits Most from KETRA?
- Donors contemplating significant gifts, including those to establish a charitable gift annuity, over the next several years
- Donors with existing multi-year pledges
- Donors over the age of 59 ½ who are considering a gift from an IRA, 401(k) or other qualified retirement plan by taking a lifetime distribution
- Donors who sell assets such as stock, mutual funds, or real estate with the goal of donating cash by December 31, 2005
Additional Resources
Examples of Donor Benefits under KETRA
Frequently Asked Questions about KETRA
Making the Gift
The NIU Foundation accepts checks, VISA, MasterCard, Discover, and American Express.
Checks
Please make sure checks are dated and postmarked on or before December 31, 2005. Please include a transmittal letter or note specifying the purpose of the gift, and mail checks to:
Northern Illinois University Foundation
1425 W. Lincoln Highway
DeKalb, IL 60115.
Credit Card Contributions
For More Information
Contact John Bass, Director of Gift Planning, at 815-753-1386 or via email at jbass@niu.edu.
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