Harnessing Resources to Values
T
YPICALLY a donor establishes a charitable gift annuity to generate retirement income for him- or herself. But Malcolm “Mike” Peabody ’46 had a different idea. Instead of steering the distributions to himself, Mike designated his longtime housekeeper, Teresa Mercado, as the beneficiary. And Groton School will receive the remainder from his annuity after Teresa’s lifetime. Before her retirement last year, Teresa had worked for the Peabody family for 35 years. She is beloved by the entire family: Mike; his wife Pam; their two sons, Carter and Payson ’82; and their three grandchildren, including current Groton Fourth Former Claire Peabody. “It struck me as a good way of supporting the School with a donation, while at the same time providing Teresa with a pension, which she deserves for her devoted service,” Mike says. “Ultimately the School, which has done so much for our family over several generations, will receive the full benefit of the gift.” As the grandson of Groton School’s founder, Endicott Peabody, Mike is keenly aware of the School’s steadfast ideals, continuing generation after generation. “Temba and Vuyelwa Maqubela are carrying on the very best components of my grandparents’ approach: forging very close ties with the students,” he says. “From my granddaughter who is at Groton now, I hear how much Temba and
Mike Peabody ’46, his granddaughter Claire ‘16, and longtime housekeeper Teresa Mercado, who inspired his unusual approach to a charitable gift annuity
Vuyelwa embody that value–creating an environment where everyone is known, where adults and students work closely together.” Mike takes satisfaction from knowing his charitable gift annuity will strengthen Groton School in the long term, while in the near term providing a more comfortable retirement for his loyal longtime housekeeper. “This approach,” Mike says, “is the perfect way to harness my resources to my values.”
Surprisingly Simple Gift Annuities MANY PEOPLE assume that gift annuities are complicated and only available in very large sums. They’re neither. Gift annuities are straightforward and can be arranged with as little as $10,000. Setting up a Groton School gift annuity does not require a lawyer or trust officer. A donor writes a check or transfers stock to Groton School and, in exchange, Groton issues a signed
promissory note guaranteeing to pay the donor a set amount each quarter for the rest of the donor’s life. The quarterly payment amount is locked in for life. It’s that simple. Rates are based on the age of the beneficiary, which is typically the donor but can also be the donor’s spouse or anyone the donor chooses, provided he or she is at least 50 years old. Right
now, a 72-year-old beneficiary locks in a 5.4 percent return rate. To find out the rate available to you, visit www.groton.org/planned_giving, or contact Director of Major Gifts Elizabeth “Betsy” Ginsberg at 978448-7584 or eginsberg@groton.org. Groton School is happy to provide information in confidence and with no obligation.