31 May Laymon Scholarship Utilizes Charitable IRA Rollover to Award Two $5,000 Scholarships
Created in November of 2015, the Laymon Scholarship has become one of the largest scholarship awards offered through the Huntington County Community Foundation (HCCF). Each year two graduating high school seniors are awarded $5,000 each to go towards their college tuition and required fees. Applicants must have a minimum GPA of 2.0 (“C” average), answer two essay questions regarding their financial need and desire to further their education, and reside in one of the following zip codes: 46792 (Warren, IN), 46781 (Poneto, IN), 46766 (Liberty Center, IN), or 46714 (Bluffton, IN).
The donor of the Laymon Scholarship created the fund utilizing the charitable IRA rollover provision. After years of being retroactively renewed, this provision finally became permanent in 2015. Under this provision, up to $100,000 can be donated directly to a qualified charitable organization from a donor’s IRA account. By donating directly to the charitable organization, the donor can exclude up to $100,000 from their annual gross income and, in essence, receive up to a $100,000 charitable contribution deduction. This contribution would also count towards satisfying the donor’s required minimum distribution (RMD) requirements for that calendar year. To read more about the charitable IRA contribution and its tax advantages click here.
Currently, the donor serves as an advisory member of the scholarship committee, reading through each application and making recommendations to HCCF regarding the scholarship recipients. The donor has also created a scholarship adviser succession plan to keep the family involved in the extended future. At the time of the donor’s death or incapacity, the donor’s son will join as an advisory member of the scholarship committee. After the donor’s son’s death or incapacity, the donor’s two grandchildren will join as advisory members of the scholarship committee.
In only two years, the Laymon Scholarship has awarded 4 students $20,000 in scholarships. We congratulate Cora Hill and Lily Sabinske for being 2017 Laymon Scholars!
For more news and information regarding this endowment and other endowments held at HCCF, please explore www.huntingtonccf.org and like us on Facebook at huntingtonccf.