Donna Harter

Use your IRA now to fund a gift annuity and support UMW in the future

If you are 70½ or older, you have an opportunity this year to transfer up to $53,000 from your traditional IRA to fund a charitable gift annuity. This giving option allows you to satisfy a portion of your required minimum distribution (RMD),  create a fixed rate of income for yourself, and support students and programs at UMW.

This option can be used only once in each person’s lifetime. Here are a few guidelines:
• Your IRA administrator must transfer the funds directly to the University of Mary Washington Foundation.
• You will not pay income tax on the transfer of funds, nor will you receive an income tax deduction for the gift.
• Once established, you can begin receiving regular annuity payments at a fixed rate from the UMW Foundation.
• Since the funds in your IRA had not previously been taxed, you will need to pay taxes on the annuity payments. The upside on this form of income and related tax liabilities is that all will be spread out over several years.
• If two spouses are of the qualifying age, each may be able to transfer up to $53,000 for a charitable gift annuity, and each may receive annuity payments.
• At the time you create a charitable gift annuity, you may request any residuals from your gift benefit the Fund for Mary Washington, an academic department, or other University programs.

To learn more about creating a charitable gift annuity through your IRA, contact Jan Clarke in the Office of Gift Planning at jclarke@umw.edu or 540-654-2064. As always, please consult with your financial advisor and plan administrator.

Scholarship offers essential support to French and international business major

As a child, Hadley Mantia began learning simple French phrases from her grandmother, a long-time French teacher in Kentucky. “I just loved hearing my dad’s mom speak the language,” says Hadley. “I thought it was the coolest thing on the planet.”

Hadley enhanced her vocabulary through French classes during both middle and high school. When embarking on her college search, she stumbled upon a unique opportunity at UMW: a combined French and business course.

“I thought the French business class was great, but then I fell in love with the small campus and the entire community,” says Hadley.

An unexpected change in her family’s financial situation complicated Hadley’s college plans, but it did not stop her. She immersed herself in campus life, became a resident assistant, and began working in Dodd Auditorium. She also applied for and received the A. Haskin Jackson and Edith Nunnally Jackson Scholarship funded by Heritage Society member Judith Jackson Jones ’68.

“This scholarship has been a huge help in paying my way, and I actually met Mrs. Jones last year at a luncheon,” says Hadley. “She was such a bright light, telling me stories and motivating and inspiring me to go for my goals.”

In addition to her classes and campus employment, Hadley also joined the UMW Performing Arts Company (PAC) to pursue her interest in dance, and she and a friend helped restart UMW’s French Club. In the summer of 2023, Hadley went abroad to work as a marketing intern for Opened Mind JPA in Aix-en-Provence, France.

“Getting a glimpse into the French business world gave me a lot of insight,” says Hadley. “I now have a greater appreciation for the country and the people.”

With graduation near, Hadley is busy scheduling interviews. Her ideal job is one that effectively merges her international business education with her proficiency and love for the French language.

For information about becoming a member of the Heritage Society, contact Jan Clarke at jclarke@umw.edu or 540-654-2064.

Article by Donna Harter, University Advancement

 

 

Put your intentions in writing

If you are considering a bequest to the University of Mary Washington Foundation (Taxpayer Identification Number: 54-0169627), please include the following language:

“I hereby give and bequeath the specific amount of $________ (or ____ percent of my  estate) unto the University of Mary Washington Foundation, Inc., 1119 Hanover Street, Fredericksburg, Virginia 22401, to provide funding for the _____________________ [Fund for Mary Washington, program, department or endowment] at the University of Mary Washington OR a program as determined by University administrators.”

Once your plans are finalized, please be sure to notify the Office of Gift Planning so that the University can honor your intentions and recognize you as a member of the Heritage Society.

Contact Jan Clarke at jclarke@umw.edu or 540-654-2064 for more information.

Plan now to optimize charitable giving and reduce taxes

Fall is the season when retirees with IRAs are considering how to manage required minimum distributions (RMDs). This age-related requirement means you have to take a distribution, even if you would prefer not to withdraw money, even if the economy has not been kind to your investments, and even if you are in the position to increase your IRA.

The good news is that you have alternatives:

You have the option to direct a portion of your RMD to charity. Contact your IRA administrators and ask them to make a qualified charitable distribution (QCD) directly to Mary Washington.

• You can distribute up to $100,000 this calendar year, and the QCD satisfies your RMD up to $100,000. (NOTE: Your spouse also may be able to contribute at the same level.)
• You will not be able to claim a charitable tax deduction on this directed gift, but you will not owe income tax on the withdrawal.

You also may opt to fund a charitable gift annuity at Mary Washington.

• This plan will provide income for life and reduce the value of your taxable estate.
• Payments from charitable gift annuities are taxed as income and do not qualify for income tax deductions. On the other hand, you will not pay income tax on the immediate transfer of the distribution.

There are important restrictions on how to transfer funds from your IRA for a QCD or to establish charitable gift annuities. Contact your financial advisor and the UMW Office of Gift Planning at jclarke@umw.edu or 540-654-2064  for information.