Stay tuned for more details of the new art exhibit space in Kindlon Hall!

On December 9, 2009, the House of Representatives passed the Tax Extenders Act of 2009. The $31 billion bill will extend over 40 tax provisions from 2009 to the end of 2010.

Major tax provisions include extension of the research and development credit, the teachers’ supplies deduction and seven charitable provisions.

Investment fund managers currently operate as partners and generally pay income tax at the 15% capital gain rate rather than the 35% ordinary rate. Under the bill, the employee of a partnership will pay tax at ordinary rates for services that he or she provides.
There are seven charitable provisions in the extenders bill. These are as follows:

1. IRA Charitable Rollover – Distributions will be permitted up to $100,000 per year for IRA owners directly from the IRA to charity.
2. Food Inventory Gifts – Businesses may give food inventory to charity and receive an enhanced deduction for gifts of apparently wholesome food.
3. Computer Equipment – Corporations may receive an enhanced deduction for gifts of computers to educational organizations.
4. Book Inventory – Corporations may receive enhanced deductions for gifts of books to elementary and secondary schools.
5. Subchapter S Corporations – A Subchapter S corporation may gift appreciated property and the shareholder benefits from the full deduction.
6. Conservation Property – Gifts of conservation property qualify for expanded deductions and longer carry-forwards.
7. Rent Payments to Parent Charities – Fair value rent payments by subsidiaries will not be unrelated taxable income to the parent charity.

Editor’s Note: This list of tax extenders is nearly certain to be passed by both House and Senate. However, because the Senate has in the past objected to these revenue-raising provisions, it may be 2010 before the final extenders bill is passed.

Ten IRS Tax Tips on Year-End Gifts

In a letter published on December 8, 2009, the IRS provided “tax tips on end-of-year donations.” These include the following tips:

1. IRA Charitable Rollover – While the required minimum distribution for 2009 has been waived, it still is permissible for an IRA owner to transfer up to $100,000 directly to a qualified charity.
2. Clothing and Household Items – Gifts of clothing or household items in “good used condition or better” will qualify for a deduction. If the value is over $500, a donor may obtain a qualified appraisal.
3. Cash Gifts – Gifts of money now require a bank record or written acknowledgement from the charity. The record must show the name of the charity, the date and the amount of the contribution. Credit card payments are also deductible and should show the name of the charity, the date of the gift and the date the transaction posted. For payroll deductions, a taxpayer should retain a pay stub or a Form W-2.
4. When Deductible – Donations are deductible when made. Checks mailed by December 31, 2009 that clear the bank are deductible in 2009.
5. Qualified Charity – Not all charities are qualified to receive deductible gifts. On www.IRS.gov, a donor can search for qualified charities in Publication 78 and determine whether a gift qualifies for a deduction. However, gifts to a church, synagogue, temple or mosque qualify even if the charity is not listed in Publication 78.
6. Itemized Deductions – If a taxpayer takes the standard deduction, there will be no added benefit from charitable gifts. In order to receive an additional charitable gift deduction, the taxpayer must itemize deductions.
7. Property Gift Records – For gifts of clothing, household items or other property, the charity should give a receipt with the name of the charity, date of the gift and a reasonable description of the property.
8. Car, Boat or RV Gifts – For vehicle gifts worth over $500 that are sold by the charity, the deduction is limited to the gross proceeds from the sale. The charity will provide IRS Form 1098-C to the donor. It must then be attached to the donor’s tax return.
9. Non-Cash Gifts Over $500 – If a donor makes non-cash gifts over $500, then IRS Form 8283 must be attached to the tax return.
10. Gifts of $250 or More – If a gift of property is valued at $250 or more, then the charity must provide a receipt to the donor. The donor must have the receipt when he or she files IRS Form 1040.

This year, seniors have set a goal of raising $5,000.00 to help complete Phase 1 of the renovation of the Rice Center.  Phase 1 of the renovation process begins with the athletic arena.  If the seniors reach their goal of raising $5,000.00, a row of chair back seats in the arena will be donated and named on behlaf of the Class of 2010!

Every senior, at some point during their time at Benedictine University, has spent time in the Rice Center whether for practice, sporting events, lectures or just squeezing in a workout.  The Rice Center was constructed to accomodate a student body of about 1,000.  Today, our enrollment exceeds 5,000, and to properly serve our students, the facility needs an update.

Participation is key to making the Senior Class Gift a success and the Rice Center Renovation a reality.  Help support the senior class by making a gift online at www.ben.edu/SCG.

There are different levels you can contribute at:

• $25–Gift will be allocated toward $5,000.00 goal
• $50–Gift will be allocated toward $5,000.00 goal and your name will be featured on the Parent Recognition Plaque that will be displayed i nthe Rice Center.
• $250–Gift will secure you a brick that you can personalize that will be displayed in the Rice Center.

For more information, please contact Jessica Stillo at jstillo@ben.edu.

Freshman Orientation: STAT Orientation Leaders were a HUGE help during freshman orientation this year.  The Orientation Leaders had a blast helping students find their way at the University and offering advice and tips!

Quad Day:  STAT members set up a table in the quad and over 80 new students signed up to become members, bringing the groups enrollment to 150 students!

STAT Homecoming Week:  This week was packed with activities for STAT members.  There was a Corn Cob Challenge where students raced to finish an ear of corn as fast as they could for the chance to win a prize, and also Sophomore Mugging Day which was an event to celebrate the sophomore class.  As a sophomore, students are officially considered an alumnus of the University.  All sophomores received a Mug, root beer floats, and information on the Alumni Association.

If you’d like to see the wall in person, or would like to be added to the wall, please contact Meagan Daniel at 630-829-1813 or mdaniel@ben.edu

Make a gift of a

EXTENDED!! The Charitable IRA Rollover provision has been extended through 2009!

The legislation that allows individuals to gift directly from their IRA to not-for-profit institutions has been extended. Please refer to the specifics below to see if you can take advantage of this provision to meet your philanthropic goals. If you have any questions as to how this could impact your individual situation, please feel free to contact Jason Leppin, (630) 829-1814 or jleppin@ben.edu.

• Age Requirement: 70½ years old and older
• Donation Limit: Cannot exceed $100,000
• Eligible Charities: Must go directly to a public charity. Contributions to supporting organizations, donor-advised funds, and private foundations, except in narrow circumstances, do not qualify for the tax-free treatment.
• Eligible Retirement Accounts: Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment.
• Do charitable contributions from IRAs count toward your annual IRA distribution requirement? Yes, you can give your required distribution to a qualified charitable organization without having to count it in your taxable income.
• Directly to the Charity: Distributions must be made directly from the IRA trustee payable to the public charity.
• No Gifts in Return: You cannot receive any goods or services in return for the charitable IRA rollover.

A Charitable IRA Rollover is a fantastic way to make a significant gift to Benedictine University. If you meet the requirements, please call Jason Leppin, (630) 829-1814 to discuss the details.

Download Ernie at www.ben.edu/Ernie and print, cut and attach him to a tongue depressor for his close up or pick him up at the Alumni Picnic this weekend.

E-mail your Ernie photos to Julie Nelligan at jnelligan@ben.edu or send through postal mail to Julie Nelligan, Benedictine University, 5700 College Road, Lisle, IL 60532

We’ll post your photos on a special site on the Alumni Web page and we will also display a map with all of the photos of Ernie’s travels with Alumni, students and friends of Benedictine University at Homecoming 2009.

Happy travelling!