Planned Giving
You can use your IRA to receive tax benefits and support Kean University.
On December 16, 2014, the U.S. Senate passed HR 5771, which included a one-year extension of expired tax provisions retroactive to January 1, 2014. This reauthorizes the IRA charitable rollover through December 31, 2014. Donors age 70-½ and older may transfer up to $100,000 from their IRA to a qualified public charity. The transfer will be made free of federal income tax and the gift qualifies for the donor's 2014 required minimum distribution (RMD).
Before proceeding with any gift, you will want to make sure that your situation meets the following legal requirements as well as other situations for a tax-free transfer under this law:
1. The gift is being made either from an IRA or ROTH IRA plan, not another tax deferred retirement vehicle such as a 401(k), 403(b), etc.;
2. The gift is for a maximum of $100,000 annually;
3. You are at least 70-½ years of age; and
4. You are making an outright gift to support Kean University and do not expect any financial benefit such as a Charitable Gift Annuity or Charitable Remainder Trust in return.
To make certain that an IRA charitable rollover is right for, you should consider that*:
1. You don’t need the additional income necessitated by the Required Minimum Distribution; or
2. Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts; or
3. You do not itemize deductions; or
4. You are subject to income tax deduction and exemption phase-outs.
By taking advantage of this opportunity, the funds you transfer to the Kean University Foundation (“KUF”) for the benefit of Kean University will not be included in your taxable income. In some cases, lowering your taxable income may place you in a more favorable tax bracket, and using IRA assets for the charitable rollover can also reduce your taxable estate.
Please note that while your taxable income will be lowered, the distribution to KUF will not be eligible for a charitable tax deduction.
If all the above is consistent with your situation, then you are qualified to move forward with an IRA gift.* If you wish to proceed with a charitable IRA donation, the most important thing is to ensure that the transfer of monies is made directly from your IRA to KUF. The first step you should take is to contact your IRA custodian to learn its procedures. Please contact us for wire transfer instructions before you direct your IRA custodian to transfer the funds to KUF, or kindly notify us if your IRA custodian will be sending your funds by check.
Please feel free to contact James M. Gurland, J.D., Senior Advancement Officer, at 908.737.3437 or jgurland@kean.edu with any questions.
*We advise and recommend that you consult with proper tax counsel with regard to this matter.
How you can help secure the future of Kean University and your legacy by planning your gift with the greatest impact.
Philanthropy can dramatically transform your life. Planned Gifts which benefit Kean University often benefit their donors as well, helping accomplish important financial and family objectives. By discovering your charitable capacity, you can realize your philanthropic ambition. Your planned gift supports Kean University’s commitment towards providing a World Class Education to assure its socially, linguistically, and culturally diverse students the means to reach their full potential, including students from academically disadvantaged backgrounds, students with special needs, and adults returning or entering higher education.
On the left are some of the ways you can create and grow your own legacy, click on an item to learn more.
Today, philanthropic interests and tax benefits are commonly linked. Through planned giving it is possible to reduce or eliminate federal and state taxes owed on the value of a gift. Planned giving can work in your favor when it comes to paying taxes on income, capital gains, gifts, inheritance and your estate. These tax benefits are available to all individuals at all income levels. In addition to clicking the links on the left you can also contact James Gurland at jgurland@kean.edu to request a copy of Ways to Give, an informative 20 page booklet that will guide you.
The Medallion Society
Donors who establish a planned gift become members of the Medallion Society, which celebrates planned gifts by individuals and their families who have generously provided for the future of Kean through their estate plan or other types of gifts. The Medallion Society gathers annually to bestow recognition on new members as well as to keep them engaged in how their giving impacts our students and secures Kean’s future. For more information on joining the Medallion Society, please contact James Gurland at jgurland@kean.edu.