11/18/2007

Fellow Thomasians:

It is at this time of the year that we think of  tax strategies and at the same time help our alma mater including students and teachers and the less fortunate kababayans who need our help and support. We know that the foundation can always count on your generosity and willingness to help.

First is about donating appreciated stocks/securities held for more than a year(long term).

We can donate stocks or securities or mutual funds to our favorite charity preferably the USTMAAAF. Please refer to a recent WSJ article.. http://online.wsj.com/article_print/SB119439764907784646.html

To do this, get or download a Charitable Gift Donation - Letter Of Authorization for DTC Transfer Form from your financial institution where the stock is held(Sample form from Schwab attached) We'll give you the account #, DTC #  and receiving firm and the client name of course is USTMAAA Foundation. Fax that form to your institution and the stock(s) will then be transferred to Schwartz account where the foundation funds are held. Transfer may take few days and the amount that will be credited to you will the stock price on day or hour the stock is received by Schwartz. The board will then decide if your donated stock/security be kept or sold. A THANK YOU letter will then be sent you by Stella for your donated security and corresponding amount. The accountant/tax preparer usually sends with your tax return a copy of that letter. ADVANTAGE: No capital gains TAX on the appreciated value and you can deduct from your tax return the whole amount.

Second is for our seasoned colleagues (70 ½ yrs) who are obliged to have a mandatory distribution of their IRAs. Another WSJ article..

http://online.wsj.com/article/SB118955485445024389.html

From the article…."If you're 70½ or older, you can transfer as much as $100,000 directly from an individual retirement account to a qualified charity without having to pay income tax on that money. What's more, the transfer counts toward your required minimum distribution." This option will expire this year. If you are thinking about this, you have to act fast. Most institutions have their deadline in the first week of December as this involves some paperwork to have the transfer done before the end of the year.

You can contact me at 570-8981198 or by email   tbuendia@gmail.com. You can also email Pauline at USTMAAA…   USTMAAA@aol.com

Respectfully,

AntonioBuendia, M.D.

Treasurer, USTMAAA & USTMAAAF

Click to download DTC Authorization form: SCHWABcharitableGiftDonationTransfer.pdf