CollegeBoundfund® online gifting tool contributions to Rhode Island beneficiary accounts have topped the $1 million mark since the feature became functional in late 2011.

CollegeBoundfund, Rhode Island’s tax-advantaged 529 college savings plan, is designed to encourage families to save for future higher education expenses at accredited colleges, universities, and vocational or trade schools nationwide.

The plan’s online gifting tool, a popular option during holidays, milestones and other special occasions, offers an easy way for account owners to invite family members and friends to contribute to established accounts.

“Families and friends are embracing the tradition of giving a gift that provides endless possibilities for a child’s future,” Governor-elect Gina M. Raimondo, who has CollegeBoundfund accounts for her two young children, said in a statement. “This also demonstrates that more families understand the importance of setting goals and personal planning, which are critical skills in creating a more financially empowered Rhode Island.”

More than 25,000 CollegeBoundfund accounts are established for Rhode Island beneficiaries with total assets under management of more than $355 million for Rhode Island residents, as of Dec. 5.

Through CollegeBoundfund, Rhode Islanders receive other valuable benefits, including:

A state tax deduction of $500 (individual) or $1,000 (joint filer) for CollegeBoundfund contributions made by account owners by Dec. 31, 2014.

Low minimum initial and subsequent contributions – accounts can be started with as little as $25.

Low investment fees and no annual account fee.

Automatic deductions from direct deposit paychecks or automatic contributions from checking or savings accounts.

Also, while the online gifting tool is available to all families investing in the program, those with newborns have an additional resource to consider. Children born to or adopted by Rhode Island families are eligible for a $100 CollegeBoundbaby Grant to be used for higher education.

Through the newly enhanced CollegeBoundbabySM program, starting Jan. 1, parents of newborns simply check the box “yes” on their in-hospital Birth Certificate Worksheets to allow the Rhode Island Office of Vital Records to release the necessary contact information to RIHEAA to authorize the CollegeBoundbaby Grant for their child. If a child is adopted by a Rhode Island resident, the adoptive parent may self-enroll their child within the first year of adoption.

The $100 contribution will be held and invested by RIHEAA in a CollegeBoundfund master account on behalf of the child until the child is ready to attend a higher education institution at any accredited college, university, and vocational or trade school nationwide. The grant and any associated earnings can be withdrawn for the purpose of funding qualified higher education costs.