Some local charitable organizations are hopeful a change in tax law will be a boon for their groups and the community.

On Aug. 17, a federal law was enacted that allows IRA owners to share their retirement savings by giving directly to a charity without being required to pay income tax on the amount. Taxpayers age 701/2 or older may contribute up to $100,000 per year directly from an IRA to charities through the duration of the law, which is set to close Dec. 31, 2007.

"It's really too early to tell what effect it will have," said Jean Tehan, executive director of the Community Foundation of North Central Wisconsin. "It has presented us with an opportunity that did not exist before."

Previously, donors were able to take a charitable deduction on donations from IRAs, but money first was counted as income and taxed accordingly. Because of the way the rules were previously structured, the deduction did not offset the income tax. Under the new law, donors can only take advantage of the deduction or the tax-free option.

With an estimated $3.6 trillion invested in IRAs in the United State, the United Way of America estimates that the tax break could generate an additional $400 million in new giving to the charitable sector over its two-year life span.

"We are certainly encouraging donors in the community to think of this," Tehan said. "We are in an age where we have gone through a number of stock market increases. Some people might have wealth that may be beyond what they themselves or their families might use."

In some cases, heirs will receive just a fraction of the IRA assets that pass through an estate, and donating to charity may be a good way to make use of the money, Tehan said. But she recommends that people consult with a professional advisor to properly direct donations from retirement funds.

Because the law benefits higher income retirees, Tehan and her counterpart at the united Way of Marathon County, executive director Joanne Kelly, are hopeful it may result in bigger gifts here.

"When people make larger gifts of their estate ... those gifts can really provide a resource that's outside the norm," Kelly said. "We struggle so hard to come up with the annual operating budget from annual donors, when a nonprofit gets a one-time large gift it provides them some real creative time to (investigate) what else they can do in the community. Often, that's over a period of time -- it creates a lasting change rather than a one-time grant."