You may wonder how others are able to give generously to the College of Saint Elizabeth. One way is by giving cash now capped by a more substantial estate gift later—resulting in transformative gifts in which philanthropic dreams come true.
President Helen J. Streubert
with Dr. John Zavada.
A memorial speaker series made possible by an IRA Charitable Rollover
Dr. John Zavada knew he wanted to commemorate his sister Mary Zavada ’57, who died unexpectedly in 2014. Mary had already established a scholarship in memory of the siblings’ mother, Sophie Zavada, which Mary funded throughout her life.
“Mary really enjoyed her four years at the College of Saint Elizabeth,” says John. “After considering a number of gift options, I felt that establishing a memorial speaker series was the most exciting.”
The Mary R. Zavada ’57 speaker series: Christian Responsibility in the 21st Century will bring influential Christian speakers to campus to address leadership, responsibility, and morality/ethics informed by a Christian perspective. Planning is underway for the inaugural event, which will take place in fall 2019 as part of the 120th anniversary celebration of the college.
John wanted to fund as much of the speaker series as he could with the required minimum distribution (RMD) from his IRA, which is technically considered a planned gift as it comes from assets held for future use. By giving through an IRA Charitable Rollover, John avoids paying taxes on the withdrawal, as the funds transfer directly to a qualified charity.
“It is so much easier to give and track my giving through an IRA Charitable Rollover,” says John.
Because he did not want to wait a year until his next RMD to fund the speaker series in full, he chose to pay the remainder of the gift over six months through stock.
“Paying in smaller increments gives me the flexibility to make funds available in a way that also offers a tax benefit and that makes sense in my overall financial situation,” notes John.
Mary Ford ‘06 and Stephen Ford.
An endowed scholarship funded through a $1 million joint universal life insurance policy
“College was always a dream of mine,” says Mary Ford ’06. “I came to Saint E’s as an older student and felt very welcome and joined right in with the younger students. That was a very positive experience for me.” Soon after her graduation, Mary and her husband Steve wanted to create a scholarship to provide the opportunity of an education at CSE to others.
To fund the Mary C. and Stephen D. Ford Endowed Scholarship, the couple turned to their life insurance agent, who suggested they purchase a joint universal life policy to use as a gift vehicle.
“The joint life policy structure cost less in premium payments than a single life policy, yet still provides a terrific payout,” says Steve. The value of the investment as a way to achieve their philanthropic aspirations proved irresistible.
The Fords purchased the life insurance policy naming CSE as sole beneficiary with $40,000 in cash, and immediately donated the policy to the College of Saint Elizabeth, making CSE both the owner and beneficiary of the policy. This allowed for a tax benefit on the initial cash payment, which was estimated to fund premiums on the policy through 2027.
The Fords have agreed to fund the policy even if premiums due before 2027 are not covered by the initial donation, ensuring that the policy will not lapse. Any future donations made to the college to pay premiums will be tax deductible. In the meantime, the Fords have contributed additional cash gifts to the scholarship fund. The end result will be an endowed scholarship valued at more than $1 million.
“We have been blessed,” reflects Mary. “We were able to get all of our five children through college and saw what it did for them, not to be burdened with student loans.”
“We are both firm believers in the mission of Saint E’s of access and opportunity in education,” says Steve. “We also believe that whatever you give away comes back a hundred-fold.”
