Many professors and scientists give back in ways that go beyond money: mentoring students, serving on boards, and sharing their research. When it comes to financial gifts, thoughtful charitable giving strategies can help your generosity go further while fitting with the rest of your financial plan.
This article outlines several charitable giving strategies people commonly explore, organized by the question each one answers. It also covers ways to support universities and research causes specifically, and questions to ask before you choose an approach.
Start With Your Giving Goals
Before choosing a strategy, it can help to clarify what you want your giving to accomplish.
Questions to ask yourself
What causes matter most? Your alma mater, a research field, a scholarship, or your local community?
When do you want the impact? Now, over your lifetime, or as a legacy?
How involved do you want to be? Some people want to stay closely connected to how gifts are used.
Should family be part of it? Giving can be a way to share values with children or grandchildren.
Summit Retirement Advisors notes that charitable giving guidance can help in developing philanthropic plans aimed at creating meaningful impact.
Strategy 1: Bunching Charitable Donations
The question it answers: "How can I give regularly if I usually take the standard deduction?"
Bunching means grouping several years of planned donations into a single year. In that year, your total itemized deductions may exceed the standard deduction, which could make the charitable deduction more meaningful. In other years, you may take the standard deduction.
Some people pair bunching with a donor advised fund, contributing in one year and recommending grants to charities over several years. Tax rules, including deduction thresholds, can change, so check current IRS guidance.
Strategy 2: Giving Appreciated Securities
The question it answers: "Is there a more tax-efficient way to give than writing a check?"
Giving long-term appreciated securities directly to a qualified charity may allow you to deduct the fair market value and avoid capital gains tax on the appreciation, subject to IRS rules and limits. This may appeal to someone with investments that have grown significantly over time.
It can also be a way to reduce concentration in a single holding while supporting a cause you care about. Selecting which assets to give works best when coordinated with your overall portfolio.
Strategy 3: Qualified Charitable Distributions From an IRA
The question it answers: "How can I give from my IRA once I reach my 70s?"
A qualified charitable distribution, or QCD, allows IRA owners who have reached the eligible age to transfer money directly from an IRA to a qualified charity. The amount transferred is generally excluded from taxable income, and for those subject to required minimum distributions, a QCD can count toward that requirement.
Some important points:
Direct transfer required: The funds must go directly from the IRA to the charity.
Annual limits apply: The IRS sets an annual QCD limit that can change.
Not all charities qualify: QCDs generally cannot go to donor advised funds or private foundations.
Strategy 4: Planned Giving and Legacy Gifts
The question it answers: "How can I support a cause beyond my lifetime?"
Beneficiary designations
Naming a charity as a beneficiary of a retirement account can be a simple way to leave a legacy gift. Because charities generally do not pay income tax, this approach may be tax efficient compared with leaving pre-tax retirement assets to individuals.
Bequests in a will or trust
A will or trust can direct a specific amount, a percentage, or remaining assets to charity.
Charitable remainder trusts
A charitable remainder trust may provide an income stream to you or others for a period of time, with the remainder going to charity. These are complex and typically involve legal and tax professionals.
Ways to Support Universities and Research
Academics often want to give back to the institutions and fields that shaped them.
Scholarships and fellowships: Supporting students in your discipline.
Endowed funds: Some universities allow donors to create or contribute to named funds, often with minimum amounts.
Research support: Gifts directed to a lab, center, or program.
Matching gifts: Some employers match employee contributions to eligible charities.
University development offices can explain the options and minimums for each type of gift.
Coordinating Giving With Your Overall Plan
Charitable giving touches taxes, investments, retirement income, and estate planning. Coordinating them may help you avoid giving in a way that unintentionally strains other goals.
Questions to review with an advisor
How much can I comfortably give each year while staying on track for retirement?
Which accounts or assets are most efficient to give from?
How does my giving fit into my estate plan?
Should my giving strategy change once I leave a full-time role?
Summit Retirement Advisors lists estate planning and charitable giving on its Financial Planning Overview page, noting that estate planning can help you craft plans that reflect your values. For the investment side, see the Asset Management Overview.
Who Summit Retirement Advisors Serves
Summit Retirement Advisors is located at 310 Ferry Street, Lafayette, IN 47901. The firm works with "research-driven professionals, scientists, professors, founders, and university leaders" who want clarity without sacrificing their time. Its approach centers on listening first, translating complexity into clarity, collaborative refinement, protecting your time, and long-term planning.
Plan Your Giving
If you want your generosity to fit thoughtfully within your broader financial plan, a conversation may help. Book an appointment or call 765-447-1330. You can also sign up to receive the firm's newsletter on the contact page.
Frequently Asked Questions
What are the most tax efficient ways to give to charity?
Commonly discussed approaches include giving appreciated securities, qualified charitable distributions from an IRA, bunching donations, and naming a charity as a retirement account beneficiary. The right approach depends on your situation.
What is bunching charitable donations?
Bunching means combining several years of donations into one tax year so your itemized deductions may exceed the standard deduction in that year.
Who can make a qualified charitable distribution?
IRA owners who have reached the eligible age set by the IRS can make QCDs directly to qualified charities, subject to annual limits. Check current IRS guidance for the age and limit.
Can I leave my 403b to a charity?
Many retirement plans allow you to name a charity as a beneficiary. Check your plan's rules and review beneficiary designations with your estate plan.
How do I set up a scholarship at my university?
Contact the university's development or advancement office. They can explain the types of funds available, minimums, and how gifts are directed.
Securities offered through Regulus Financial Group, LLC, Member FINRA/SIPC. Advisory services offered through Regal Investment Advisors, LLC, an SEC Registered Investment Advisor. Regal Investment Advisors and Regulus Financial Group are affiliated subsidiaries of Regal Holdings of America, LLC. Insurance products are offered through Summit Financial Group of Indiana. Summit Retirement Advisors and Summit Financial Group of Indiana are affiliated but independent of the Regal entities. This article is for general educational and informational purposes only and is not tax, legal, or investment advice, nor a solicitation to buy or sell any security. Information is from sources believed to be accurate but is not guaranteed. Investing involves risk, including the possible loss of principal. Diversification and asset allocation do not guarantee a profit or protect against loss. Past performance is no guarantee of future results. Please consult with a qualified professional regarding your individual situation.
