IRA Charitable Rollover Gift from ’72 Alumni Buoys Princeton Rowing

For many alumni and friends, a qualified charitable distribution (QCD), or IRA charitable rollover, is a popular estate planning option that lets donors enjoy the immediate impact of their gift to Princeton University. For Diana Foster ’72 and Thomas Jones ’72, a QCD offered an opportunity to make a heartfelt gift at the right time.

The Tiger couple met in Princeton, married in Princeton and have since generously supported the University and its athletic programs. As an electrical engineering student at Princeton, Jones rowed on the varsity lightweight crew team. Foster, whose major was in biochemistry, was one of only 64 women admitted as transfer students to the Class of 1972. On the heels of their 50th Reunion, the pair recently made a new gift to Princeton that showcases the spirit of the Class of 1972.

“After having supported Princeton’s rowing programs over many years, Tom and I had the idea to create an endowed fund to support a Class of 1972 rowing shell permanently,” said Foster. “We seeded the Class of 1972 Fund for Rowing with a qualified charitable distribution (QCD) from our IRA, invited classmates to participate and were thrilled with their response and personal contributions.”

Making a gift through a QCD from an IRA is easy:

• Donors make a distribution directly from their IRA or Roth IRA to Princeton.
• The gift may satisfy all or part of the IRA’s required minimum distribution (RMD).
• Donors must be at least 70 1/2 years of age at the time of transfer.
• Donors can direct the funds to support programs that are important to them.

A QCD gift can be financially beneficial:

• Donors may give any amount up to $108,000 annually without having to pay taxes on the distribution.
• The gift can reduce a donor’s annual income level, which may help decrease Medicare premiums and reduce the amount of Social Security subject to tax.
• Donors may use up to $54,000 from their IRA to establish a charitable gift annuity that pays them income at attractive rates.

For the Class of 1972 couple, supporting Princeton rowing by seeding a fund for a rowing shell with a QCD was an estate planning decision that worked well for them. “Making the charitable gift was easy to do, and the tax benefits made sense for us,” said Foster.

In addition, the gift allowed the two to pull together with other generous classmates who once rowed for Princeton’s lightweight, heavyweight and women’s teams, making it deeply meaningful.

To learn more about QCDs and how they may be right for you, please contact the experts at Princeton’s Gift Planning. Please call 609.258.6318 or email GiftPlanning@princeton.edu.

—Catherine Mallette ’84