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Rockville, MD - Goodwill Industries International and other nonprofit organizations stand to benefit from provisions on charitable reform and contributions included in the pension reform bill signed into law by President George W. Bush on August 17, 2006. The bill is expected to boost fundraising initiatives and the donation of goods to charitable organizations nationwide.

With the bill's passage, donors 70 ½ years or older can now move up to $100,000 from an Individual Retirement Account (IRA) without having to count the donation as taxable income. "The Pension Reform Bill is a great opportunity for mature donors who want to make a difference in the lives of people working to improve job skills, move up the career ladder, and achieve economic self-sufficiency," says Kessinger. "We are hopeful the new provision will boost fundraising initiatives for Goodwill agencies in a meaningful way."

In addition, the bill changes the tax treatment for the deduction of donated clothing and household goods by specifying that the goods must be in good used condition or better. "Every donation of money or goods is an investment in your community," says Kessinger. Donations to Goodwill help fund job training and career services for people with disabilities, welfare recipients and other job seekers.

The Pension Reform Bill also:

• Requires donors who make a charitable contribution of money to keep a cancelled check, bank record, or receipt from the organization he or she has donated to showing its name, the date of the contribution and the amount.
• Imposes certain requirements on tax-exempt groups that offer credit counseling services, limiting the allowable amount of debt management plan income to 50 percent of revenues.
• Requires certain tax-exempt organizations to file an annual notice with the Internal Revenue Service containing basic contact and financial information. The requirement applies to organizations that don't currently have an annual filing requirement because their gross receipts are less than $25,000.