Engineering Alumnus Uses Blended Retirement Gifts to Pay it Forward

Inspired by the life-changing scholarship he received during his years at The University of Akron, Donald G. Busson '70 established The Busson Family Endowed Engineering Scholarship in 2023 to support engineering students with financial need. "If not for a scholarship from The University of Akron for the first two years, I would not have been able to attend college," Busson said. "I was the oldest in a large family and my father was a worker in Akron's rubber industry, building tires."

Through the College of Engineering and Polymer Science's cooperative engineering program, Busson gained valuable insight that formed the foundation for his career in information security.  He hopes that his endowed scholarship, funded by both lifetime and future gifts from his retirement accounts, will provide generations of engineering students with opportunities for similar transformative experiences.

Busson funded his scholarship with a gift from his Individual Retirement Account (IRA), known as a qualified charitable distribution (QCD) or IRA rollover. This type of gift is particularly tax advantageous as it allows individuals aged 70½ or older to transfer up to $100,000 (adjusted annually for inflation) directly from their IRA to a qualified charity, like The University of Akron Foundation, without having to pay income taxes on the distribution. For individuals who must take a required minimum distribution (RMD) from their IRA, a gift directly to The University of Akron Foundation can satisfy all or part of that RMD for the year.  For those who make regular, annual gifts, using retirement assets instead of cash can result in great tax savings year in and year out.

In addition to growing his fund through lifetime QCD gifts, Busson has also committed to maximizing the impact of this scholarship with a generous commitment of an estate gift through an IRA beneficiary designation to The University of Akron.

"At this stage of my life," Busson shared, "it is time for me to give back and hopefully help some students build successful careers. The Busson Family Endowed Engineering Scholarship program is the ideal method for me to do that through annual giving during my life and a substantial gift upon my passing."

Many financial assets, such as retirement accounts, life insurance policies and brokerage accounts, allow you to name charitable organizations like The University of Akron Foundation as a beneficiary. This process is straightforward, does not require an attorney and results in the full benefit of one's assets being used for the causes you care about most.

By naming The University of Akron Foundation as a beneficiary of his IRA, the funds transferred from Busson's retirement account to the University will not be subject to income tax, as they would be if he were to name an individual, such as a child, as a beneficiary.  Instead, making a gift of his retirement account ensures that the full benefit of the account is used for his desired purpose.

This thoughtful arrangement ensures that Busson and his family can see the impact of this scholarship during his lifetime while also allowing his legacy of support to continue for generations to come. "We are grateful for Donald Busson's vision and dedication to our students," said Dr. Craig Menzemer, dean of the College of Engineering and Polymer Science. "His scholarship not only honors the support he once received but also paves the way for future engineers to achieve their dreams."