Investing in Students’ Education for their Future

Retired pharmaceutical executive Bill Rohn has always believed that education is key to a purposeful life. He and his wife, Janie, also believe that providing access to education to historically underserved communities is a worthwhile investment. When the Pacific Ridge School was being started, he decided to get involved by sponsoring North County students who couldn’t otherwise attend. It was a rewarding partnership and Bill learned a few things along the way. Through the students he sponsored, he saw firsthand the importance of a strong family commitment to student success and the unique challenges that first generation students face. Through his association with Pacific Ridge, he met Willy Ayyad, another Nativity Prep supporter. As they discussed their mutual commitment to education access, Willy told Bill about Nativity Prep. Intrigued, Bill and his wife called Nativity Prep President, Brendan Sullivan, and came for a tour.

At that time, Nativity was located at the Holy Spirit campus. Bill and Janie sat in on a class, met with students and spoke with Brendan about the program. “We like to fully investigate before we invest,” Bill says. Afterwards, Bill and Janie decided to sponsor four students. And in 2019, Bill joined the Board of Trustees, serving on the Excellence in Learning Committee.

To financially support Nativity Prep, Bill and Janie chose to take advantage of a tax-smart donation strategy known as a Qualified Charitable Distribution or QCD. A QCD is an otherwise taxable distribution from an IRA that is transferred directly to a nonprofit organization. The IRS requires IRA owners to take annual income withdrawals or Required Minimum Distributions (RMD’s). This taxable income can push retirees into a higher tax bracket and impact social security and medicare. Charity-minded individuals can take advantage of the QCD, which allows individuals who are 70 ½ years or older, to donate up to $100,000 directly to charity, reducing their taxable income. “This is a win-win”, Bill shares,” because the school receives the entire amount while my taxable income is reduced.”

Thank you, Bill and Janie, for your continued support of Nativity Prep Academy.

QCD: A qualified charitable distribution (QCD) allows individuals who are 70 ½ years old or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their required minimum distributions. As a result, donors may avoid being pushed into higher income tax brackets and prevent phaseouts of other tax deductions.

Part of an ongoing series highlighting giving strategies that may be of interest to our community. As always, you should consult with your tax or financial advisor to see what makes sense for you.