IMPORTANT TAX ADVISORY

NEW TAX LAW AFFECTS YOUR CHARITABLE GIVING OPTIONS WITH

THE AQUIDNECK LAND TRUST

On September 23, 2005, President Bush signed into law an expansive relief package for victims of Hurricane Katrina. Thanks to this special legislation, taxpayers will find it easier to support hurricane relief while also remembering their favorite charities.

This package is designed to promote outright cash gifts. Presently, cash charitable deductions are limited to 50% of adjusted gross income. In the case of cash gifts made to charities between August 28 and December 31, 2005, the deductions are not limited, allowing, effectively a 100% deduction. This provision effectively permits unlimited IRA withdrawals and outright gifts to charity. Taxpayers over the age of 59½ have the opportunity to withdraw assets from their IRA’s or qualified plans and contribute them to charity. Such withdrawals will be added to adjusted gross income, but the contributed amount will be deductible from income, resulting in a “wash.”

There is no dollar limit; a person can withdraw and give $100 or $1,000,000. Please note that the IRA owner must withdraw the desired amount this year and make the gift by December 31, 2005 to qualify for this tax incentive. IRA custodians may take two to three weeks to process withdrawal requests. Accordingly, IRA owners should make the request by early December to allow time for processing by the IRA custodian.

Personal circumstances will impact this special giving opportunity, as state and federal tax laws may affect you. Before taking such actions, you should consider how an increase in your adjusted gross income may reduce the amount you can deduct for medical expenses and casualty losses, accelerate the phase-out of personal exemptions, cause some loss of other itemized deductions, or cause an increase in your state taxes.

As always, we are advising our donors to consult with their tax advisors about the optimum amount to contribute in 2005 and the advisability of making contributions from your IRA’s or other qualified plans.

Should you be interested in making a charitable contribution in support of the Aquidneck Land Trust recognizing new favorable, yet time sensitive tax benefits, or if you have any questions about these rules and how a gift would impact the Land Trust, please contact David F. Guertin, Jr. at (401) 849-3798 or dguertin@ailt.org.

Make a donation to the Aquidneck Land Trust today!

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"Thanks...Giving"

Dear Supporter:

The American holiday of Thanksgiving has always had a strong connection to the land which sustains us. For example, Edward Winslow, who was present at the three-day 1621 harvest celebration at Plymouth Colony, the event now recalled as the “First Thanksgiving,” made the following comment about the harvest of that year: “And although it be not always so plentiful as it was at this time with us, yet by the goodness of God, we are so far from want that we often wish you partakers of our plenty.” Of course the American custom of giving thanks for the bounty from our land did not begin with the arrival of European colonists. From ancient times up to the present, the native people of North America have held ceremonies to give thanks for successful harvests and other good fortune. This vibrant link between Thanksgiving and the land is why I write to you just before Thanksgiving 2005.

For those who love Aquidneck Island, we have much to give thanks for this year as the Aquidneck Land Trust made great progress in 2005 conserving the land which sustains us. This year, the Land Trust completed seven strategic conservation transactions thereby conserving over 184 acres for present and future generations. Important parcels such as Escobar’s Highland Farm in Portsmouth, Miantonomi Park in Newport, the Sullivan preserve in Middletown, and the Town Pond area in Portsmouth were among those properties conserved. Also this year, the Land Trust signed an agreement with the City of Newport and the Town of Portsmouth to conserve an approximate 483-acre area in Portsmouth containing three of Aquidneck Island’s seven public water reservoirs. This agreement is the most important and largest conservation agreement entered into by our organization since its inception. We anticipate closing on the perpetual Conservation Easement for this project in 2006.

The Aquidneck Land Trust’s success in 2005 is directly related to the amount of giving received by the organization this year. For example, numerous people from the community turned out to support the Land Trust’s two principal fundraising events. Over 700 people attended Fiesta Verde and over 90 people attended the annual golf tournament at Newport National Golf Club. This year, 266 people joined the Land Trust as new members and 890 people renewed their memberships. In 2005, the Land Trust also completed raising the necessary $3 million to purchase the perpetual conservation restriction on Escobar’s Highland Farm by securing numerous grant awards from four principal partners: the United States Department of Agriculture, Natural Resources Conservation Service; the Town of Portsmouth; the State of Rhode Island; and The Nature Conservancy through a grant from The Champlin Foundations. Three visionary foundations, the Alletta Morris McBean Charitable Trust, the Prince Charitable Trusts, and the van Beuren Charitable Foundation, also continued to provide leadership level support to the Land Trust at this most critical time. Various landowners donated conservation restrictions to the Land Trust in 2005 as well. In addition, numerous others also made extremely generous gifts to the Land Trust such as the Loebs Family Foundation and a bequest from Marjorie A. Ward.

At this time of reflection, the Aquidneck Land Trust gives great thanks to the community for all this giving and support. It helps the Land Trust make a lasting difference at this most critical time when the development pressures on the remaining open space parcels are fierce. Conservation can’t wait on Aquidneck Island! In 2004, the Aquidneck Land Trust identified and then scored over 500 available and threatened open space parcels on Aquidneck Island. From that process approximately 100 available parcels emerged as conservation priorities at risk. Those parcels represent well over 3,000 acres containing a mix of important wildlife habitat, agricultural, recreational, scenic, water resource, and historic values. If the giving continues at the strong levels seen in 2005, we are confident that we can continue to give thanks to the community in the most appropriate and lasting way we know how, by permanently conserving Aquidneck Island’s remaining treasured open space lands for present and future generations. I am so thankful to be a part of a community that values the land which sustains us.

Sincerely,

Edward Sortwell Clement, Jr.

Executive Director

The Aquidneck Land Trust’s mission is to preserve Aquidneck Island’s open spaces and natural character for the lasting benefit of our community. With the closing on Escobar’s Highland Farm, the Land Trust has conserved over 1,288 acres on Aquidneck Island. The Land Trust is a 501(c)(3) non-profit organization. For more information visit www.AquidneckLandTrust.org or call (401) 849-2799.

This email update has been sent to the entire Aquidneck Land Trust email list. Please let us know if you do not wish to receive these email updates by replying to this message. If you have any questions or comments, please call 401/849-2799 x18 or email cwatson@ailt.org

As always, thank you for your continued support
for conservation on our Island.