Pension Act Passes

The Pension Act of 2006 passed the U.S. Senate on Aug. 3, by a 93-5 vote, which will directly affect foundations such as the Northwest Arkansas Community Foundation, said Suzanne Ward, executive director.

The NWACF is a collection of funds dedicated to improving the quality of life in Northwest Arkansas from the Botanical Garden Society of the Ozarks to the Ozark Natural Science Center Fund.

The bill is aimed at improving the chances for workers to receive retirement benefits promised them and incentives for young workers to enroll in 401(k) plans.

But, according to a press release by the Forum of Regional Association of Grantmakers, an IRA charitable rollover incentive “will permit individuals who have reached 70 to exclude from income of up to $100,000 a year in retirement plan assets of contributing to a qualifying charity.”

However, “gifts to donor-advised funds, supporting organizations, and private foundations do not qualify for the incentive.

Ward said she doesn’t understand the prejudice against donor-advised funds, such as the NWACF’s funds. She believes the Senate and the House of Representatives missed a good opportunity to help charitable giving.

“I don’t understand why they did that,” Ward said.

Ward will advocate any change to the law that will include donor-advised funds.