Be Smart. Like Jean. And Jane. And Arthur.

Like most smart donors, Arthur and Jane Brody and Jean Reisen want to make their contributions as effectively as possible. So when they sat down to plan their charitable contributions for 2006 and 2007, each decided to take advantage of a time-limited opportunity provided by the Pension Protection Act of 2006.

Arthur and Jane knew a secret that many donors don’t: Leaving money to any person other than your spouse by using an IRA can be a very expensive way to transfer money to your loved ones. That is because an IRA can be taxed twice. As hard as it is to believe, an IRA is not only subject to applicable estate taxes. It is taxed again – as ordinary income – when a beneficiary other than your spouse cashes it out. But if you transfer funds from your IRA directly to a qualified charity, and leave other assets to your heirs, the charity, unlike your heirs, receives the IRA money tax-free.

Jean knew this too. So, like the Brodys, she decided to take advantage of the Pension Protection Act of 2006 by transferring money directly from her IRA to The Jewish Community Foundation to fund her Lester Society Endowment. She also prepaid her UJC Women’s Department annual gift for a couple of years, and made contributions to The New Israel Fund and several local charities. By doing that, she was able to support the organizations important to her, while reducing her taxable estate without incurring income tax on the money that was withdrawn.

Jean and Jane and Arthur knew that if they didn’t act by the end of 2007, this opportunity would be lost – perhaps forever.

If you are 70.5 years of age or older, follow the example of smart donors like the Brodys and Jean Reisen and act now, before it’s too late. Make a contribution that benefits the community and your family, and gives you the satisfaction of knowing that you have made a difference in the lives of people who need your help.

For more information, contact the Jewish Community Foundation at (973) 929-3060 or . Remember: An endowment is forever.