By Hal Wm. Ellis

Please consider making a gift to the Oklahoma Bar Foundation. Many charities associated with the legal profession and the judicial system are supported by the Oklahoma Bar Foundation and would benefit from your gift. Organizations receiving grants from your foundation include Access to Justice, Civil Legal Aid, Children’s Legal Services, Law-related Education programs, Oklahoma High School Mock Trial, scholarships at law schools in Oklahoma and other worthy
charities.

Your Oklahoma Bar Foundation is a not-for-profit corporation organized under the laws of the state of Oklahoma. It is exempt from federal income taxation by virtue of section 501 (c) (3) of the Internal Revenue Code of 1986, as amended. The OBF is a qualified organization under section 170 (c) of the Internal Revenue Code. To the extent allowed by law, gifts to the foundation are deductible.

Cash — A gift of cash is deductible in an amount up to 50 percent of your adjusted gross income. A cash contribution can be made by check or credit card.

Marketable Securities — Gifts of marketable securities are also deductible. Contributions of capital gain property are deductible up to 30 percent of the individual donors adjusted gross income.

Real Estate — An individual also receives a charitable deduction for a gift of his or her entire interest in real property. Again, the 30 percent limitation would likely apply.

IRAs and Retirement Plans — As Mark Curnutte outlined in the Bar Foundation News section of the April 9, 2005 issue of the Oklahoma Bar Journal (76 OBJ 925), the OBF can receive IRA and retirement plan death benefits without paying income tax. The estate of the deceased participant can claim an estate tax deduction for a charitable bequest. It is important to remember that for estate tax purposes there are no limitations on the amount of the charitable deduction as are imposed by the federal income tax regime. The article is available online at www.okbar.org/obf/newsapril05.htm.

Cars, Airplanes and Boats — There are numerous types of assets that can be donated to charity. After Dec. 31, 2004, there are new rules related to donations of boats, airplanes and motor vehicles. If the charity sells the car and a deduction of $500 or more is claimed, the deduction is the smaller of:

a) gross proceeds of the sale

b) the car’s fair market value

Form 1098-C must be attached to the taxpayer’s return. There are further rules that will apply if the charity improves the vehicle, uses it or gives it to an individual.

The OBF staff, officers and trustees are willing to work with you regarding your charitable interest. The OBF is your foundation. All members of the OBA are members of the OBF. Let us know if the staff, officers or trustees can assist you in making a gift to the Oklahoma Bar Foundation by calling (405) 416-7070 or e-mailing us at foundation@okbar.org.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. Federal tax advice contained in this communication (including any attachments or enclosures) is not intended or written, and cannot be used, for the purpose of a) avoiding penalties under the Internal Revenue Code or b) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Hal Ellis of the Stillwater firm Ellis & Drummond is the 2006 Oklahoma Bar Foundation president and practices in the area of trusts and estates. In addition to OBF activities, Mr. Ellis is the state chair of the American College of Trust and Estate Counsel and a fellow of the American Bar Foundation. He is a member of the Oklahoma Turnpike Authority. From 1993 to 1995, he served on the OBA Board of Governors. For six years he served on the Appellate Division of the Court on the Judiciary. During the 1980s he served for seven years on the Professional Responsibility Tribunal. Mr. Ellis is a 1974 graduate of the University of Oklahoma College of Law.