Game-Changing Gifts

Explore the personal and financial advantages of making an IRA charitable rollover or IRA beneficiary gift, a charitable gift annuity or a charitable remainder unitrust.

Eileen and Dr. Norbert Hartmann ’64 are charitable and strategic in supporting their alma maters: Texas A&M University, the University of Idaho and Oregon State University. Norbert credits Eileen and her 30-year CPA career with the edge that helps them achieve their philanthropic goals in tax-advantaged ways. One of those ways: using an IRA charitable rollover annually to fund their passions at each university on a rotating basis. “It’s a very logical way to reduce our adjusted gross income (AGI),” Eileen explained. “There are many tax advantages to lowering your AGI, like having a better chance of deducting medical expenses. Also, if your AGI increases with age, you have to start paying higher Medicare tax out of your Social Security in retirement.”

Inspired by their parents’ sacrifices to provide the college educations they credit for their professional success, Eileen and Norbert feel called to pay their opportunities forward. Their current gift to Texas A&M supports an Aggie Veteran Freedom Scholarship and an endowed fund in statistics, Norbert’s focus during his graduate and doctoral programs. To increase the impact of their endowed gifts, they named the Texas A&M Foundation as the beneficiary of their retirement accounts—another tax-advantaged way to support charities. “Texas A&M was special and gave me the tools I needed to succeed in life,” Norbert shared. “I hope our gifts will help deserving students get the education they need so that they’ll someday have the resources to give back themselves.”
 

Texas Tech University graduates Beverly and Cecil Campbell had never considered supporting Texas A&M. But as Beverly thought about establishing a scholarship at Texas Tech with estate assets, Cecil discovered a new 2023 tax law that would allow her to use an IRA qualified charitable distribution (QCD) to fund a one-time charitable gift annuity (CGA). “I read about this law in the Wall Street Journal, and I’d never heard of it,” Cecil said. “But I liked that I could fund a CGA by taking money out of my IRA without having to pay taxes on it.”

While Beverly used her IRA QCD to fund a gift at Texas Tech, Cecil contacted the Texas A&M Foundation’s planned giving team and learned that he could direct the majority of his CGA to support an area he and Beverly hold dear: Mills County AgriLife Extension Agents. “We both grew up in Mills County and were involved in 4-H,” Beverly explained. “I worked for more than 14 years training county agents, and Cecil has relied on livestock advice from the AgriLife Research Station in San Angelo, so we know future agents will be good stewards of this gift.” Cecil agreed and said he was pleased with his decision. “I’m really impressed with the Foundation’s team. It was a simple and efficient process, and I think it’s a win-win situation for everybody.”

Note*: The Secure 2.0 Act took effect in 2023 and was reapproved in 2024, allowing those 70.5 years and older to fund a one-time CGA of up to $53,000 using an IRA QCD. This law is not guaranteed for 2025, but donors can always fund a CGA with cash or securities, and payout rates are currently the highest they’ve been in 16 years.
 

Need a charitable giving solution to help you beat taxes this year? Partner with our planned giving team to find the perfect fit for your unique scenario. Contact Kevin Westerman ’​11 at the bottom of this page to begin a conversation.