The philanthropic spirit is alive and well in the Baltimore region as evidenced by the recent record-setting year by the Harry and Jeanette Weinberg Foundation.

The private foundation will release its annual report Nov. 2 detailing its $93.6 million in charitable giving and announcing new initiatives for the coming year.

“All of the foundation’s contributions are required to help those who are disadvantaged,” said Rachel Monroe, chief operating officer.

And while most charitable givers may not be able to set aside nearly $1 billion to fund a private foundation like the Weinbergs, there are options that can accomplish similar results and give tax benefits to donors.

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“If you give cash, you get a [tax] deduction for the amount of donation made,” said Gigi Wirtz, director of communication for the Baltimore Community Foundation, a collection of charitable funds that benefit the greater Baltimore area. “If you donate stock, you get a tax deduction for the full fair-market value of the stock on the day you donated it, and then you don’t have to pay capital gains.”

And new for the 2006 and 2007 tax years is the ability for people 70 and a half or older to dedicate a portion of their annual Individual Retirement Account disbursements to charity.

Eugene Steuerle, a senior fellow at the Urban Institute for Tax policy who testified before Congress on the IRA provision, said the idea for the law is to simplify giving for people who are required to take deductions from their IRA accounts.

The law is specific, though.

It permits the age-eligible person to exclude from income up to $100,000 a year in retirement plan assets if the contribution is made to a qualified charity, according to the Council for Foundations. Donation cannot be split, and gifts to charities that are advised by the donor are not allowed. Neither are donations to supporting organizations and private foundations.

“When you withdraw money from an IRA, you pay income tax on it,” Wertz said. “A lot of people have IRA accounts that have grown tremendously, and they may have more money in their IRA than they may ever need. This is a window of opportunity.”

While Wirtz encourages charitable giving to any worthy cause, she pointed out that donations to the Baltimore Community Foundation act like a charitable mutual fund where money is pooled for improved results.

More information

» Baltimore Community Foundation

2 East Read St.

Baltimore, MD 21202

410-332-4171

www.bcf.org

» For information on IRA contributions, logon to the Council of Foundations at www.cof.org and enter the search word IRA.

kcarson@baltimoreexaminer.com