Longtime PAI donor takes advantage of a unique charitable tax benefit

Julian Babad, a PAI donor for 10 years, capitalized on the unique opportunity provided by the Charitable IRA Rollover and was able to more than triple his annual support.

Mr. Babad is a retired chemical engineer living in Tucson.  After an early retirement at the “tender” age of 50 and searching for new work in vain, he accepted retirement in 1988 and chose to enjoy it.  Mr. Babad sold his condo, bought a 5th-wheel trailer and pick-up, and hit the road.  For the next 17 years, his RV travels enabled visits to family and friends as well as the enjoyment of his favorite outdoor activities in many areas of the U.S. and Canada.  In the fall of 2005, two 5th-wheels and two pick-ups later, Mr. Babad called it quits on being a modern nomad.

Julian Babad’s first experience with philanthropy was as a beneficiary, receiving need-based full-tuition zero-interest scholarship loans from The Scholarship Foundation of St. Louis for his freshman and sophomore years at Washington University in St. Louis, his home city.   Having once benefitted from the generosity of others is what inspired him to give back to the many causes to which he is committed, including individual and family freedom and population issues. Mr. Babad identified well-run charitable organizations, like PAI, to support over the years and in 2006 utilized the Charitable IRA Rollover to increase his gifts to all his favorite charities.

The Charitable IRA Rollover, created by Congress and the President last August as part of the “Pension Protection Act of 2006,” has opened up a window of opportunity for charitable givers, but only for tax years 2006 and 2007.   It applies only to those taxpayers who have traditional or Roth IRAs (401-k, annuity, etc. do not apply) and who are 70½ or older and therefore required to make minimum distribution (MRD) from their IRAs.   If you didn’t take advantage of the “Act” for 2006 charitable gifts, you can still take advantage of it in 2007.   This new legislation can enable you to increase overall giving to your favorite charities while also significantly reducing your adjusted gross income (AGI) – and potentially reducing your 2007 taxes!

As with all planned giving options, you should consult with your tax or financial advisor for additional information. For more information on the many ways you can contribute to PAI, please call Michele Duryea, Vice President of Development at 202-557-3431.