Planned Gifts

Planned Gifts

Planned gifts will positively impact life at Southern Union for years to come and are a way to
integrate your personal, financial and estate planning goals. Some of the most common planned
gifts include: bequests, gifts of appreciated stock and qualified charitable contributions.

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.

*Please consult with your personal tax advisor for how these strategies could impact your specific tax and estate planning situation. For additional information about planned giving to the Southern Union Foundation, contact Gretchen VanValkenburg at gvanvalkenburg@suscc.edu or (334) 414-4039.