Klingberg Family Scholarships Established with IRA Rollover and Gift of Stock

Betty Jo and Doug Klingberg established two family scholarship funds through an IRA rollover gift and a gift of stock to Carroll University.

"We have been fortunate that Carroll has been a part of our lives and our family's lives for generations,” Betty Jo said. “We are happy to see Carroll doing so well today and wanted to do our part in growing Carroll's endowment with this gift while ensuring the Klingberg family legacy lives on at Carroll forever."

The scholarships they established honor a significant family legacy at Carroll. Betty Jo and Doug met at Carroll and are both members of the Carroll University Class of 1963. Betty Jo's father, Albert Jaggard, was a member of the class of 1936; her sister, Judy Jaggard, was a member of the class of 1965. Betty Jo and Doug's children are also Carroll alumni. Their daughter Susan (Klingberg) Craig, and son, Brian Klingberg, graduated from Carroll in 1997 and 1991, respectively.

Their gift includes two named funds: an assistance fund to help students with emergency needs and a scholarship fund for first-generation college students. The suggestion to earmark the scholarship fund for first-generation college students came from their daughter Susan (Klingberg) Craig ’97. "My husband and I are college professors and see first-hand both the valuable perspective and unique challenges first-generation college students bring to campus,” said Craig. “I thought it would be fitting if my dad, who was a first-generation college student, earmarked his gift so that others are given the same opportunity he was given."

The IRA charitable rollover funded most of the Klingbergs' gift. The required minimum distribution (RMD) rule with IRAs requires a certain percentage of the plan to be withdrawn each year. A great way not to pay federal taxes on portions of these withdrawals is to gift that amount to Carroll directly. Contributions from these funds are not taxed. So you can contribute the total amount to Carroll, not just the amount after taxes.

A gift of appreciated stock also partially funded the Klingbergs' contribution. Gifting appreciated stock helped Betty Jo and Doug maximize the tax benefits of their gifts. The Klingbergs received an immediate income-tax deduction for the fair-market value of their securities and paid no capital-gain tax on the transfer when the stock was sold.

The financial advice the Klingbergs received about making an IRA rollover and gift of stock had its own family legacy at Carroll. When making the gift, they turned to their financial advisor, Kurt Veldhuizen '89, who has a family legacy at Carroll himself. Kurt's wife, Michelle (Marcks) Veldhuizen, also graduated from Carroll in 1991, and Kurt's parents, David Veldhuizen and Dawn (Martin)Veldhuizen, are alumni, too, from the classes of 1959 and 1960, respectively.

The Klingbergs look forward to the next phase of establishing their scholarships: seeing their gifts in action. "We want to help students with financial need receive a wonderful Carroll education," Doug said. “So we are excited to see the impact of our gifts and look forward to meeting the recipients of our scholarships."

Part of Betty Jo and Doug's gift came via their IRA. Maximize your giving with a gift through your IRA. Learn more.

Betty Jo and Doug’s classmate, Linda (Duckworth) Darr ’63, made Carroll the beneficiary of her IRA, which will launch a Native American Cross-Cultural Experience Fund. Read Linda’s story here.

Consider making Carroll a beneficiary of your IRA, and learn about the advantages here.

Betty Jo and Doug also funded their gift with stock. What are the advantages of giving stock?

Betty Jo and Doug’s classmate, Karen Bruinooge ’63, established two scholarships through her will. Read her story.

Is Carroll a beneficiary of your will or IRA? Let us know.