Ruth and Dale Leman are one of several couples who have decided to contribute to the SaddleBrooke Community Outreach (SBCO) Scholarship Endowment Fund.
“I hit the magic age of 70½ and my financial institution informed me early in 2019 of the amount required for my mandated IRA distribution. It was clear to us that the distribution would increase our tax obligation, but we avoided deciding what action to take until I read the December article in the SaddleBrooke papers about the Scholarship Endowment Fund.
“We’ve always been impressed that Community Outreach, as an all volunteer program, has done so much for local children. Three features about this program, however, stood out to us: First, we liked that the money donated goes into an endowment that lasts forever, with the earnings growing each year. We especially liked the idea of leaving a legacy that will continue to help local students long after we’re gone. Secondly, the fact that the program carefully selects deserving students, that really need and can benefit from the help, reassured us that the money we donate will be well spent. Finally, there was the tax benefit: Because the funds were donated directly from our financial institution, we avoided the tax on the distribution.
“As a result, the net cost to us turned out to be far less than the amount we donated.
“For us, this was a ‘win-win’ proposition. We get a tax break, we feel good about contributing to a great cause, and generations of students will benefit from our support.
“I would advise potential donors, however, that they don’t need to wait until December like we did, because IRA distributions can be taken anytime throughout the year.”
Note: Donations to the program can also be made by listing the SBCO Scholarship Endowment Program as a beneficiary in your estate plan, by making donations of property, cars, stocks or securities, or by simply writing a personal check. (The minimum donation is $5,000. Always consult your financial advisor about potential tax benefits.)
For more information, call Ron Andrea at 520-904-4831, email him at email@example.com
A gift of education is both priceless and timeless.