How to Win at Giving: Donating From My IRA

By Al Herring ’62

The class of 1962 held a reunion in Butte 40 years later and—in addition to socializing and getting caught up on Tech news—we decided to establish an endowed scholarship as a way of giving something back to the school that opened rewarding career doors for us.

Like many of my fellow graduates (we totaled 36!), I make an annual donation to our fund, which now totals about $180,000 and is providing a $6,000 scholarship to our current awardee. Most years, I simply mailed a check to the Montana Tech Foundation, which administers the endowment. However, Congress has made it possible to make charitable contributions from individual retirement accounts (IRAs), and that is how I now make my annual donation.

Why donate from an IRA? First off, it’s tax-free. This is a significant benefit to those of us over 70½ who are required to take an annual minimum distribution that would otherwise be taxable. Second, it’s convenient. (I set it up so the check arrives on my birthday, kind of a feel-good present to myself.)

If you are considering donating from an IRA, I strongly recommend using the help of Foundation personnel or visiting the IRA charitable rollover webpage.

Last, creating an endowed scholarship benefits us donors as well as the students. How? We get to interact with (and sometimes meet) awardees; it helps us classmates stay in contact; and we can all take pride in knowing that our donations will help Tech students and the school forevermore.

Endowed funds and tax-free IRA donations: It’s a win-win combination.

To learn more about how a gift from your IRA can be a win in your life too, please contact Luke Meyer, MSPR at 406-496-4144 or lmeyer@mtech.edu.