CAMPAIGN BAROMETER:

Gifts & pledges - $2.475 million, needed by December, 2005 - $125,000.
Please call if you would like to be a part of this historical effort.

THE “HURRICANE” OPPORTUNITY

Recently, we have been confronted with the survival plights of people who have been in a tsunami, a hurricane, or an earthquake. Generosity has been challenged more in the last 12 – 18 months than it has been in a long time.

Knowing this, Congress sponsored a tax relief package to help the victims of hurricane Katrina and all charitable organizations. Their answer was a charitable tax provision called KETRA. Congress feared that Americans were so generous to tsunami and hurricane disaster victims, they would cut back on their gifts to other charitable organizations, including hospital Foundations.

“After 9/11, there was an outpouring of giving to charities involved in responding to that tragedy, but unfortunately, many other charities saw a significant downturn in donations,” Iowa Senator Grassley said. “My hope in passing this provision is that Americans’ generosity for those harmed by Hurricane Katrina won’t mean a tradeoff for other important charitable work in this country.” (New York Times, October 27, 2005).

So, how does it work? KETRA allows a federal income tax deduction for charitable gifts up to 100% of a taxpayer’s Adjusted Gross Income (AGI) for 2005, instead of the typical 50% of AGI. It provides Americans with significant IRA or other retirement plan accounts an opportunity to give gifts of any amount.

Usually people with IRA income take a minimum annual distribution because they do not want to pay income taxes on the withdrawal. KETRA allows individuals to make a retirement plan withdrawal (of any amount), and make an offsetting charitable gift with
little or no negative tax impact. A question and answer document has been attached to provide you with more information about KETRA.

If this is an option which may work for you, the transaction must be completed prior to December 31st. If IRA assets are used, it will take several weeks to complete the transfer process so diligence is important at this time. The PHF recommends that everyone should consult with their CPA to determine if KETRA will work for them. ²

PRMC Team Works for Success

The “Simply the Best” Capital Campaign has received the endorsement and support of the PRMC medical family. The success of the campaign is important for PRMC and the families it serves.

The PRMC “medical family” includes physicians, the administration and MANY PRMC employees. This family is responsible for gifts and pledges of $ 472,279 which is nearly 20% of the $ 2.6 million needed to complete the campaign. The campaign provides emergency, radiology and Bedside charting improvements which allow PRMC to keep pace with the ever changing medical technological advancements and provide this equipment for the quality medical care PRMC provides for the families of south-central Kansas.

A publication of the Pratt Health Foundation (PHF)
203 S. Main * Pratt, Kansas 67124
( PHF and PRMC are 501(c)3 charitable healthcare organizations.)