Meeting Philanthropic Goals
in Innovative Ways

alt Midge and Jerry Mills vacationing with their grandchildren. Front row,
left to right: Ryan Fields, Jennifer Shadoian, and Kelly Fields.
Back row: Hayley Shadoian.

O

pportunities created by the Pension Protection Act (PPA) passed in December of 2006 may soon be going away. Under the Act, alumni and friends 70.5 years or older can transfer assets directly from an IRA to a charity and gain certain tax advantages. This opportunity, however, expires at the end of 2007.

“It’s a tax-savvy, easy way for alumni to make a meaningful gift to the College of Pharmacy,” says Shari Fox, director of gift planning for the University of Michigan. “Donors simply make a request of their IRA custodian or trustee to transfer a qualified charitable distribution from their IRA to the University of Michigan.”

There are limits, however. According to the Act, gifts cannot exceed $100,000 per taxpayer in 2007 for outright gifts. As always, donors should consult their tax professionals when making a gift.

For Jerry and Midge Mills, both BSPharm’61, the process was “pretty straightforward,” Jerry states.

“Our own personal needs had been met as a result of investments we had made in our IRAs, so we felt an obligation to give back to the University,” explains Jerry. “The PPA enabled Midge and me to add to the scholarship we had already established. That way, we would be able to give a large gift to help even more Michigan Pharmacy students, while avoiding some tax consequences. It’s a good deal, all around.”

Gifts made to the College under the PPA can also count toward the required minimum IRA distributions for 2007 and can be excluded from gross income, as a tax-free rollover.

“Midge and I are in a position in our lives where we are able to give back to an institution that enabled us to have successful careers,” Jerry comments. “I feel I owe a lot to the College and the University. Without our degrees, we wouldn’t have been able to pursue our dream of owning our own business.”

For more information about giving through the Pension Protection Act, please direct your Web browser to http://umich.plannedgifts.org/archive_2007 _03.html or contact Peter Niedbala at the College of Pharmacy: (734) 764-7350; or niedbala@umich.edu.