Scholarship Giving Options

Gifts may also be made through bequests in your will or by naming the Southern Union Foundation as a beneficiary on your retirement accounts. These gifts are executed after your passing and may be coordinated with your overall estate plan.

Appreciated securities owned in a taxable account that have been held one year or longer are another tax advantaged way to meet charitable intentions. You may transfer in-kind shares of the security to Southern Union Foundation to meet your giving objective, and neither the donor nor the charity will pay tax on the gains when sold.

At age 73 you are required to begin making withdrawals from your pre-tax retirement accounts. These mandatory withdrawals are called Required Minimum Distributions (RMDs). RMDs are calculated annually and are taxable income for the account owner in the year received. A tax advantaged option for satisfying all or a portion of your RMDs is a Qualified Charitable Distribution (QCD). A QCD is a distribution from your retirement account that goes directly to charity, instead of to the account owner as a taxable withdrawal. One benefit of making a QCD is that it counts towards satisfying your RMD but does not incur income tax for the account owner.

Qualified Charitable Distribution Details

• You must be 70 ½ or older.
• You must have a pre-tax retirement account, and most IRAs can make QCDs.
• The maximum amount that can be given annually as a QCD is $100,000. If you file a joint tax return both you and your spouse may make QCDs up to $100,000 annually if eligible.
• You cannot make QCDs to a donor advised fund or private foundation.
• The QCD must be made directly from your IRA as a check payable to the charity. It is not considered a QCD if the funds come to the account owner and are then gifted by cash or check.
• QCDs cannot be made from 401(k) accounts.
• Make sure to notify your CPA or tax preparer of any QCDs given.

Annual scholarships provide immediate support to students. The donor’s contribution—along with any future gifts—is awarded until the fund balance reaches zero. Donors can contribute additional funds at any time to extend the life of the scholarship or increase the number of awards available. The annual award amount is determined by the total fund balance at the time of awarding.

Creating an endowment ensures a permanent legacy of support. The Southern Union Foundation invests the principal gift so that investment earnings fund scholarships in perpetuity. Endowed scholarships can be established with a minimum gift of $25,000, payable upfront or through a series of contributions over a specified period.

Each year, the Foundation applies an approved spending rate to the fund’s average balance to determine award amounts. Because the original principal remains untouched, your gift continues to benefit students for generations to come.

Contributing to an Existing Scholarship You can make a meaningful impact without establishing a new fund. If you would like to support an existing scholarship, you can make a secure donation online today. Gifts of any size are always welcome and deeply appreciated.