Blessed are the volunteers… for they shall inherit the next watch

I have always liked the fact that duty in the armed forces has been a volunteer organization since the draft ended. I signed up in the delayed entry program in April of 1972 when I was just seventeen. The draft still existed but I did not want to wait and take my chance in going to the army. Frankly, I do not think 17-year-old Bob knew what he was getting into. The Vietnam War was winding down, but fighting was still happening, and the American disengagement was not quite complete. But I raised my right hand that cold day in Pittsburgh and by June I was flying off to boot camp in Great Lakes. Just for the sake of making it legal, we had to rise our right hand once more and off we went.

I learned pretty quick in boot camp to never again volunteer yourself. That was the word amongst the more seasoned recruits that we briefly interacted with on the first and second. Despite that warning, I did volunteer to go to the band company since I was a musician. It was actually a pretty good move since I loved music, and it got us out of some of the crappy parts of boot camp. Our service week was strictly about the music, and we even got to leave the camp for a few days to perform in parades.

I would later break the rule of non-volunteering when I was struggling with my career path. They asked for volunteers to go to submarine duty. The $55 extra a month seemed to be a pretty good enticement. Again, 18-year-old Bob did not really understand what he was signing up for. But sign I did, and it led to an amazing journey that continues to this day.

Submarines once, submarines twice

The truth is that since the draft ended, anyone who was assigned to submarines has to volunteer twice. Like other elite forces, they want to make sure you really want to subject yourself to the stress and struggles that come from a never-ending training process surrounded on all sides by water and stress.

Eventually the day comes when you graduate to civilian life. It might take four years, or it might take thirty. But all who have qualified have one thing in common. They all volunteered to sacrifice.

Despite the warnings that a wife is not issued in our seabags, many of us decided to get married. (I will assume the same warning is issued to our female sailors but based on observation, many of them ignored the warning too).

From these unions, comes children. The children are a blessing (in most cases) and the goal is for them to have amazing lives, filled with opportunities. Those opportunities include higher education including college and trade schools. But as we all know, schooling of any kind is expensive. And frankly, all that volunteering we did in our younger ages meant that we were not paid as well as our civilian counterparts. Except maybe baristas’ which in my mind are glorified mess cooks without the prestige.

So, sending your kid off to school may be the goal but finding funds to assist are the real challenge. I have never had kids, but I have watched families struggle through the years to find financial support.

That is why organizations like the USSV CF established scholarship funds. To try and help our submarine families with assistance.

Today’s installment is about the Scholarship Fund which is facilitated by Alan Fickett.

USS CF Academic Scholarship Fund

The USSV CF Academic Scholarship Program was established in 1985 and is annually executed for the sole purpose of providing charitable academic Grants to qualified academic candidates using a competitive application process based upon academic achievement, qualified eligibility links to descendants of USSVI Members in good Standing, financial need, acceptance to or attending a certified institute of higher learning, evident contribution to her or his community and clear evidence of academic achievement. The Scholarship Program is non-discriminatory with the only caveat being the candidate must be a dependent or descendant of a USSVI Member.

The Scholarship Program invites application on or about 30 October of each calendar year and closes application access on or about 15 May each calendar year. Applications are independently reviewed, scored, and competitively awarded based upon the stated candidate’s application in a formal standardized set of categories. Awards are announced on or about 15 July each calendar year and awarded funds are paid directly to the applicant’s institute of higher learning into the student’s financial account.

Fund raising and donations to the Charitable foundation Scholarship Fund are received and accepted via independent donations from members of USSVI, their families and friends, as well as organizations for academic scholarships specifically identified and used for the funding of all Scholarship Awards.

Charitable donations may be submitted from individual, volunteer groups and business entities. Donations are often raised and provided in the honor or name of a specific submarine veteran as a token of appreciation for that individuals contribution to World Peace and Honorable Submarine Service.

All donations are to be transmitted to the USSVI I USSVCF National Office, PO Box 1063, Groton, CT 06340-1063 for deposit and availability for annual scholarship funding, alternatively, donations may be made on the USSVCF’s website – http://www.ussvcf.org.  All donations, if paid by check, are to be made; “Pay to the Order of The United States Submarine Veterans’ Charitable Foundation or USSVCF.  If contributors are directing donations to a specific cause, like Scholarships, use the “for I memo” field on the check to identify that cause. All donations are Tax deductible in accordance with IRS regulations in that USSVCF is classified and registered as a 501(c)(3). The USSVCF National Office will acknowledge the donation. The donor must consult his tax advisor to determine the extent of deductibility.

Qualified student scholars who meet the requirements will be children, grandchildren, including Great grandchildren, or legal dependents of active duty or retired USSVI members having served in and qualified in submarines. Children, grandchildren, or legal dependents of a USSVI Associate member in good standing for at least two (2) years are also eligible.

The Scholarship fund was begun in the year 2000 and has grown steadily since then. During fiscal the year that ended in 1/31/2024, 77 scholarships were awarded to relatives of current and former submarine veterans. Recipients in both the high school and college categories received grants ranging from $1,000 – $2000. The total amount awarded in that year was $152,605.

But that fund is constantly in need of replenishment. So, while we want to emphasize the existence of the fund for our families, we also need to remember that there is a real need to help the fund to grow. The underlying funds that are managed and invested provide needed funds from the interest but as you can imagine, the larger the investment pool, the more generous and sustainable the ability to give these grants. That’s where you come in.

A unique way to donate to any of our funds … Qualified Charitable Distribution

Uncle Sam has his fingers into our wallets in ways that it is hard to understand. I get it that we have to provide for the national defense as well as protecting tiny fishes in California. But its frustrating that you work all your life for your family and save for the future and they still want more. But buried in the mountains of tax codes that have been written over the years are ways for you to do good with your money while cutting back on your burden to the hungry IRS. One of those is the Qualified Charitable Distribution.

Basically, the QCD donation is useful when someone has to remove funds from a tax advantaged retirement account due to Required Minimum Distributions (RMDs). If a donation is made by directing the funds from the tax advantaged account to a 501(c)3 non-profit then there is no tax incurred. For anyone who already has enough money from retirement and social security benefits then this might be a smart way to make a donation and reduce taxes too. The key is to make the distribution directly from the tax advantaged account to the non-profit (similar to a rollover).

Key Points

• A qualified charitable distribution (QCD) is a tax-free donation from your individual retirement account (IRA) to a qualified charity.
• You must be age 70½ or older to make a qualified charitable distribution.
• A qualified charitable distribution is not included in your taxable income.
• You can’t deduct a QCD from your taxes, but the savings on your income may still make this kind of donation tax-savvy.
• A qualified charitable distribution counts toward your required minimum distributions (RMDs)
• Make sure you consult with your tax preparer, financial advisor or attorney as appropriate to your situation

You can use this strategy with traditional individual retirement account (IRA) distributions, but not with 401(k) distributions.

So, if you want to donate your 401(k) funds to charity, you’ll either have to pay tax on it first or roll it over into an IRA.

• Distributions from traditional individual retirement accounts (IRAs) and 401(k)s are generally taxable, unless they are Roth accounts.
• You must take required minimum distributions (RMDs) from a traditional IRA or 401(k) at age 72, 73, or 75, depending on when you were born.
• You don’t pay taxes on RMDs from a traditional IRA when you use them to make a qualified charitable donation (QCD).
• You can’t make a QCD directly from your 401(k), but you can roll over your funds to an IRA and then make a donation.

Reference: https://www.investopedia.com/qualified-charitable-distribution-qcd-5409491

US Submarine Veterans Charitable Foundation Inc.

EIN: 95-4830806 | Watervliet, New York, United States

Based on information gained from the IRS in January 2025, USSV CF is eligible for contributions under the qualified charitable section of the IRS regulations.

Pros and Cons of a QCD

A qualified charitable distribution can be a great tool in managing your retirement assets, but there are some drawbacks as well.

Pros

It could reduce your adjusted gross income and, thus, lower your tax bracket and how much you pay in taxes.

You can avoid the 25% penalty that is imposed if you don’t take your required minimum distribution (RMD).

You don’t have to itemize deductions on your tax return to deduct a QCD from your taxable income.

Cons

The donation must go to a qualified charity. (Which our Scholarship Fund is)

The donation must come directly from the individual retirement account (IRA) through your trustee to the charity; you cannot withdraw the funds and make the donation directly.

The maximum annual QCD limit is $100,000.

A QCD cannot be claimed as an itemized charitable deduction on your taxes.

The Bottom Line

Qualified charitable distribution (QCD) is an important tool that lets donors age 70½ or older help charities of their choice and reduce their tax burden in two ways: lower their taxable income and reduce the required minimum distributions (RMDs) that can increase their income. It’s worth learning how QCDs work to take maximum advantage of their benefits to individuals and the wider world.

NOTE: Always check with your personal financial advisors to see if this is the best path forward for your personal financial plans. Not everyone has the same circumstances, and it is ultimately your responsibility to manage for your family’s future. 

Advance training and education are becoming more critical in every walk of life.

Giving our children a better shot at getting those skills is in all of our best interests.

Creating a larger pool of resources helps them but it also helps society.

This is definitely an area that you should consider as part of your long term and short-term giving.

Ambassador Mac