Time is running out to make a tax-free gift from your IRA

 "I was facing a very difficult heart problem and I decided that I wanted to complete it (endow the scholarship). I didn't want my family to have to pay for it and I could do it with my IRA."

-Mary Jane Chambers 

Mary Jane Chambers
Mary Jane Chambers used an IRA charitable distribution to make a recent gift to the fellowship she established in 2008 in memory of her husband, Dr. Randall M. Chambers, WSU distinguished professor emeritus.
    Chambers encourages others to feel the joy of giving and the ease by using an IRA. She said she feels richer by making these gifts because the students receiving the fellowship are inspired. Two former recipients have obtained university faculty positions. “It’s very exciting to me.”

The IRA charitable transfer legislation allows you to make gifts of up to $100,000 from your individual retirement account (IRA) to the Wichita State University Foundation without undesirable tax effects. In 2013, six friends of WSU have made gifts totaling more than $46,000 using this opportunity. These gifts are supporting student scholarships and fellowships in engineering, piano and psychology.

    You may contribute funds this way if:

  • You are 70½ or older at the time of the gift,

  • You transfer up to $100,000 from your IRA (This opportunity applies only to IRAs and not other types of retirement plans.),

  • You transfer the funds from your IRA directly to the Wichita State University Foundation and

  • You make your gift by December 31, 2013.

Benefits of an IRA direct transfer to the WSU Foundation

  1. The transfer generates neither taxable income nor a tax deduction, so you can benefit even if you do not itemize your tax deductions.
  2. The transfer may meet your required minimum distribution.
  3. You may transfer up to $100,000 directly from your IRA, which allows you to make a significant gift and gives you the flexibility to create an improved tax situation.
  4. Along with creating a powerful legacy, you can witness the impact of your gift to benefit WSU now.
  5. It's simple to do. Just contact your IRA administrator to request the transfer. The tax identification number for the Wichita State University Foundation is 48-6121167. When you initiate this transfer, please let us know so that we can watch for your gift and direct it to the WSU program of your choice.

An option for giving later

    If you believe that making an outright gift from your IRA isn't right for you, or if you don't qualify under the legislation rules, consider making us a remainder beneficiary of your IRA or other retirement assets. In most cases, the government defers tax on the income used to fund your IRA. After your lifetime, the funds in your IRA are subject to income taxes, which can eat up to 39.6 percent of the value of your IRA. Estate taxes could consume even more. The good news is that by naming the WSU Foundation as beneficiary of these funds, we, as a charitable organization, are exempt from taxes and will receive the entire amount you designate. Also, as a result of this tax-wise gift, your heirs may inherit more assets and pay less in taxes.

Ask us for more details

    If you are considering making gifts under this legislation, it is advisable to discuss your philanthropic goals with your professional advisor to be certain that this is the best plan for you. In addition, we are available and happy to answer any questions you might have.

circle arrow Visit our gift planning website at wichita.edu/plannedgiving or contact J. Michael Lamb ’80, EMBA, CFRE, vice president for planned giving, at 316-978-3804 or at mike.lamb@wichita.edu; or Darin Kater, MS, director of development for planned giving, at 316-978-3887 or at darin.kater@wichita.edu.

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Wichita State University Foundation

1845 Fairmount St., Wichita, KS 67260-0002
Phone: 316-978-3040 | Fax: 316-978-3277 foundation@wichita.edu

© 2014 Wichita State University Foundation

Wichita State University Foundation is a non-profit 501(c)(3) organization and donations are tax-deductible to the full extent allowed by law.