Endowment News Jul/Aug 2006

<h3>ABI Endowment Accepts Stock Donation</h3> The ABI Endowment has now accepted its first stock
donation. <b>Richard P. Carmody</b> of Adams and Reese LLP, of
Birmingham, Ala., donated 25 shares of IBM in June. Richard's generous

donation of appreciated stock is a milestone in the growth of the ABI
Endowment fund. According to Richard, a member of ABI since 1985,
"using appreciated securities to fulfill my pledge is advantageous
for the ABI and me." </p><p>In Richard's case, the stock was a gift
from a relative. As a result, he acquired the stock with a stepped-up
basis. As a taxpayer who itemizes, when he donated the stock to ABI he

received the opportunity to take a charitable deduction for the full
amount of the fair market value of the stock on the date donated.
Assuming that the donation is at or above his basis, the benefit that
Richard receives is the full value of his stock on that date. ABI then

receives the cash value of the stock on the date it is
transferred—truly a win-win situation. </p><p>As Richard indicated,
the prospect of donating appreciated stock to the ABI Endowment
presented a useful opportunity to benefit his family. In addition, as
the IRS has indicated in its own year-end guidance on donations to
charities, "we want people to be focused on helping these worthy
groups, rather than worrying about tax issues," on donations of
appreciated stock. </p><p>We hope that other ABI members consider the value
of ABI Endowment efforts in their giving plan. ABI does not provide
tax advice and we urge you to consult your tax advisor regarding the
effect of donations on your individual tax situation. </p><h3>First ABI
Endowment Golf Tournament </h3><p>In another first, ABI will be
co-hosting in conjunction with the New York Institute of Credit a
Sept. 11, 2006, tennis and golf tournament at the Montammy Golf Club
in Alpine, N.J. ABI also plans to offer continuing legal education at
this event. As the event is being held on the fifth anniversary of
9/11, proceeds will benefit a 9/11 fund as well as the ABI Endowment.

</p><p>To make a donation or for further information on the ABI Endowment,
please contact Ann vom Eigen, Deputy Executive Director and General
Counsel, at (703) 739-0800 ext 125 or avomeigen@abiworld.org.</p>