Donor Funds Prairie Restoration Project, Receives Tax Benefits by Making Contribution From IRA

Antelope Horn Milkweed © Daniel W. Reed Purple Coneflower © USFWS

An anonymous Mississippi donor took advantage of a new tax incentive to make a $50,000 gift to the Conservancy to fund a prairie restoration project in central Mississippi. This generous contribution will enable the Conservancy to partner with the U.S. Forest Service to restore 66 acres of Jackson Prairie in Bienville National Forest. In addition to the restoration work, the Conservancy will partner with Mississippi State University to conduct graduate research to determine the effectiveness of herbicide control of woody vegetation in Jackson Prairie grasslands and will conduct an exhaustive survey of historical literature to determine the extent of prairie in the mid-1800's. The research will also include a characterization of current land use. The funding will provide for the development of a long-term conservation management plan for these rare habitat types.

The Pension Protection Act of 2006 created a tax-effective opportunity for donors age 70 ½ or older with IRA accounts, to make a contribution to qualified charitable organizations like The Nature Conservancy using funds transferred directly from an IRA account without paying taxes on distributions. Prior to this law, a taxpayer would have to report any amount taken from an IRA as taxable income. This change has created benefits which have resulted in qualified individuals with IRA accounts to make a gift to the Conservancy:

• The charitable distribution counts toward the taxpayer’s minimum required distribution.
• The transfer generates neither taxable income nor a tax deduction, so even if the taxpayer does not itemize his or her tax deductions he or she will receive the benefit.
• The taxpayer may transfer up to $100,000 per year directly from his or her IRA (please note this opportunity is limited to those 70 ½ and will end on December 31, 2007).

For more information on the Central Mississippi Conservation Program, please contact Ray Robinson, Central Mississippi Program Director.

The Nature Conservancy

Central Mississippi Conservation Program
405 Briarwood Drive, Suite 101
Jackson, MS  39206
(601) 709-4752