Page 1

WINTER 2009

Bequests: No Risks, No Regrets

INSIGHTS

Making a Difference Our work is accomplished only through the generosity of our friends and supporters. All gifts — small, large and in-between — have a significant impact on our mission. All are important. All are valued. Thank you for considering the ways you can make a difference at Iowa State University. Now may be the right time to review your estate plan, and our brochures can help:

A CHARITABLE PLANNING GUIDE FOR ISU ALUMNI AND FRIENDS

Gift Planning Staff: (L-R) Gregg Hinders, Administrative Coordinator Lynda M. Jacobson, Assistant Vice President of Development Paul Caspersen, CFP®, CMFC, Executive Director of Development

Flexible Gifts — Easy to Make, Easy to Live With

Beneficiary Designations and Options

Personal Financial Affairs — Your Book of Records

Name us as a life insurance beneficiary

Taxpayer’s Home Companion — For 2008 Returns Due in April 2009

You may have a life insurance policy that is no longer needed. Perhaps it was purchased to pay off a mortgage or set up a college fund in the event of your death, and now the mortgage is paid and the kids are grown. You can name the Iowa State University Foundation as the beneficiary or contingent beneficiary of that policy. You’ll be assured that the policy proceeds are used in the way you would prefer, and it costs you nothing. Just contact your insurance agent to request a change of beneficiary form.

As always, it would be our pleasure to answer any questions or help you with gift planning ideas. E-mail us at giftplanning@foundation.iastate.edu or please call 800.621.8515 to talk with us today.

giftplanning@foundation.iastate.edu The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.

OFFICE OF GIFT PLANNING 2505 UNIVERSITY BOULEVARD P. O. BOX 2230 AMES, IA 50010-2230

PHONE: 515.294.5398 TOLL-FREE: 800.621.8515 www.withprideandpurpose.org giftplanning@foundation.iastate.edu

IN THIS ISSUE ... 2 More planning options for 2009 5 Charitable bequests: a riskfree way to make an impact 5 Beneficiary designations: simple and effective

Smart reasons to name us as an IRA or 401(k) beneficiary You may have more than one retirement plan, perhaps including a traditional IRA or 401(k) plan. If your financial goals include providing for loved ones and Iowa State University, there’s a good reason to consider naming the Iowa State University Foundation as beneficiary of one of these tax-deferred accounts while leaving other assets to family members. IRA or 401(k) assets left to family members or heirs are subject to income tax on the distribution. But since the Iowa State University Foundation is a qualified charitable organ-ization, assets left to us are received in full, with no income tax due.

Cover all bases with your savings and checking accounts

More Planning Options for 2009

One more option for making a flexible gift is to set up a payable on death designation for your savings and checking accounts. Your bank can provide the proper form. With a payable on death designation, funds in the account are the time of your death are payable directly to the person or charitable organization that you name. Funds avoid the probate process, and you have the right to change the designation at any time. You can designate a primary beneficiary and a contingent beneficiary, which means you can leave funds to a loved one first, naming us as a second option.

Charitable Bequests – A Riskfree Way to Make an Impact

Deferred gift has lasting impact on engineering students INSIDE THIS ISSUE ...

The choices are nearly endless when deciding what to give through a charitable bequest. A bequest can be specific property, such as a coin collection, a work of art, or real estate. A charitable bequest can be a specific dollar amount or an amount expressed as a percentage of the total value of your estate. Or, a bequest can even be contingent upon an event or the existence of certain circumstances.

assures that your house will not go to unintended beneficiaries. There’s much more to learn about charitable bequests and your options. For more information, return the enclosed reply card and ask for our free brochure, Flexible Gifts: Easy to Make, Easy to Live With.

The Lyle J. and Marcia L. Higgins Engineering Scholarship Fund

Choices when planning a charitable bequest

Example: In your will, you state that your sister will receive your house when you die. But you have included a contingent provision in your bequest stating that, if you predecease your sister, the Iowa State University Foundation will receive the house. This arrangement

IOWA STATE UNIVERSITY FOUNDATION 2505 UNIVERSITY BOULEVARD P.O.B OX 2230 AMES, IA 50010-2230

Few gifts are as simple to arrange as the charitable bequest. A bequest is a gift made through your will. Bequests are risk free because you retain full use of the gift property throughout your lifetime and there is no out-of-pocket cost. And you can change a bequest at any time to meet changing conditions or changing philanthropic goals. The key to a meaningful charitable bequest is an up-to-date will. If you do not have a will, we encourage you to see your attorney to put your will in place. It is the only way to make certain your exact intentions are carried out upon your death, and it is the best way to protect loved ones and provide for the charities you care about. If you have a will but want to revise it to include a bequest to the Iowa State University Foundation, the process is an easy one. Your attorney can likely update your will with a simple codicil. Making revisions or additions to your will does not necessarily require that you write a new will.

I O WA S TAT E U N I V E R S I T Y F O U N D AT I O N

Visit us online at www.isugift.org 5


Reserve the Right to Keep Your Options Open

Gift has Lasting Impact on Engineering Students

Flexible Philanthropy At the heart of philanthropy is the desire to “give back” and contribute in a way that makes a difference in the lives of others. There are many ways to give back — sometimes through gifts of time and service, and other times through gifts of cash or property. At the Iowa State University Foundation, we are keenly aware of the economic challenges that lie ahead for 2009. We are optimistic about our ability to meet these challenges with support from donors and friends who recognize the significance of this undertaking. In this economic climate, we are committed to redoubling our efforts and working diligently to help those we serve. And with your help, we can forge an important partnership that will sustain our work during these unpredictable times. In this issue, we focus on helpful information about flexible gifts — ways you can show your support for Iowa State without locking into commitments that eliminate future financial options. You will learn how one couple, Lyle and Marcia Higgins, created a scholarship that not only met their needs, but also had an impact on more than 90 undergraduate engineering students last year alone.

Scholarship support is a traditional way many Iowa State University benefactors have supported the university over the years. In fact, more than 550 new scholarships have been created since Campaign Iowa State: With Pride and Purpose was launched. But few scholarships have had the type of impact on campus that the new Lyle J. and Marcia L. Higgins Engineering Scholarship Fund has had on engineering students. During the 2008-09 academic year alone, more than 90 aerospace, agricultural, chemical, civil, computer, construction, electrical, industrial, materials, and mechanical engineering students received the Higgins Engineering Scholarship. The scholarships ranged from $1,000 to $2,500 per student and were awarded based upon financial

Please take a few moments to read further; considering these ideas should be well worth your time investment. We also invite you to use the enclosed card to send for our complimentary brochure, Flexible Gifts: Easy to Make, Easy to Live With. It provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Flexible gifts are a safe and purposeful way to demonstrate your philanthropic commitment. Please let us know if we can help you and your financial advisors further explore these options.

Lynda M. Jacobson Assistant Vice President of Development Office of Gift Planning ljacobson@foundation.iastate.edu 515.294.4049 ❙ 800.621.8515

“I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” – Scott Higgins need and academic merit. Recipients may renew the scholarships upon reapplication and continued compliance with the stated criteria. “The total amount the college awarded through the Higgins Engineering Scholarships represents just over 6 percent of the total scholarship awards that the College of Engineering distributes to its undergraduate students,” said Diane Rover, associate dean for academic and student affairs. “A gift of this size can make a significant impact on our scholarship program.”

Other Options for 2009 – Support Iowa State University, Receive Personal Benefits During challenging economic times, caution is the byword for financial decisions. Nonetheless, there are smart yet cautious moves you can make — steps beyond flexible gifts — that will benefit you and us. The charitable gift annuity is one option. In exchange for a gift of cash or property, we promise to pay you a fixed income for the rest of your life — an amount that will not change, and you never need renegotiate or renew the agreement. What’s more, you’ll be eligible for an income tax charitable deduction based on the value of your gift. Gift annuity payout rates are higher than you might expect.. Another option to consider is the deferred charitable gift annuity, which offers tax benefits now but begins payments at a future date. Compared to the “traditional” gift annuity, there are two distinct additional advantages with the deferred charitable gift annuity. All other factors being equal, 1) the payment rate is higher, and 2) the tax deduction is greater. Please let us know (by phone, e-mail, or using the enclosed card) if we can help you explore how a charitable gift annuity might help meet your philanthropic and personal financial goals.

Find a planning option that benefits you and Iowa State

Lyle and Marcia Higgins established the scholarship through a bequest. Upon Marcia’s death in 2003, a credit shelter trust was established to benefit College of Engineering students. When Lyle, a 1957 industrial engineering graduate of Iowa State, passed away in 2006, the proceeds from his estate/bequest also went into the general scholarship, creating a $2.6 million endowment. A charitable bequest like the Higgins’ scholarship fund is easy to create. Such a method is risk-free because donors retain full use of the gift property throughout their lifetime, with no out-of-pocket cost. It also allows individuals like Lyle and Marcia Higgins to make sure that their bequest goes to a program they would like to support. The couple decided they wanted to support education, specifically engineering scholarships, with the proceeds of their estates. “I just received the annual endowment activity report (for this scholarship) the other day and saw that more than 90 students were awarded scholarships this year!” writes Scott Higgins, the couple’s nephew. “I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” It’s also a great feeling for the 90 engineering students who received the scholarship, including Alex Clemons. “I hadn’t considered attending a school outside of my home state of

We hope you have found useful ideas in this issue of Insights. To further aid your planning, send for a complimentary copy of the booklets listed below, with no obligation. Simply fill out this tear-off card, fold and tape it on the open end, and drop it in the mail to us. We’ll pick up the postage.

“If it weren’t for scholorships like the Higgins Scholorship, I would not be able to attend Iowa State ” – Alex Clemons Minnesota, but I fell in love with Iowa State and Ames when I visited,” said the junior majoring in industrial engineering. “If it weren’t for scholarships like the Higgins Engineering Scholarship, I would not be able to attend Iowa State. “I know that the overall experience I’m having here is invaluable and I can’t stress enough how grateful I am for the donors that make it possible.” Joel Johnson, director of student programs and services in the College of Engineering, agrees. “It’s exciting to have the opportunity to make such a difference in so many students’ lives,” he said.

Please send a complimentary copy of: Flexible Gifts: Easy to Make, Easy to Live With, a brochure that provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Personal Financial Affairs: Your Book of Records, a helpful planning guide for documenting important information. Taxpayer’s Home Companion for 2008 Returns Due in April 2009, an overview of the 2008 tax rules including those affecting charitable gifts. I’m interested in discussing the various ways to support Iowa State. Please contact me ____ by phone ____ by e-mail to talk about these possibilities.

Some of the current recipients of the Lyle J. and Marcia L. Higgins Engineering Scholarship.

Please sign me up for your free e-newsletter. E-mail address below.

Estate bequests can be established for faculty positions Scholarship support isn’t the only area where Iowa State benefactors can use estate bequests to assist the university. Several new endowed faculty positions have been established during Campaign Iowa State: With Pride and Purpose through this method.

NAME

A recent example of this is the Kirby Gray Chair in the College of Engineering. This chair was established through a bequest of Kirby Gray, a 1945 electrical engineering graduate who died in 2008.

ADDRESS

Gray had established a unitrust or charitable remainder trust. This legal device is frequently used by individuals who wish to make a substantial contribution to a school or charitable organization.

CITY

In order to establish a unitrust, a donor transfers property to a trust while retaining the right to receive payments from the trust for a term chosen by the donor. The payments may continue for the lifetime of the trust’s named beneficiaries, a fixed term of not more than 20 years, or a combination of the two. Iowa State leveraged a portion of the Gray bequest to establish the endowed faculty position in the College of Engineering with $500,000 from an appropriation from the Iowa Department of Economic Development.

STATE, ZIP

TELEPHONE

E-MAIL

Marston Hall, home of the College of Engineering at Iowa State University.

INFG0209

Iowa State University Foundation INSIGHTS

2

3

Visit us online at www.isugift.org

4


Reserve the Right to Keep Your Options Open

Gift has Lasting Impact on Engineering Students

Flexible Philanthropy At the heart of philanthropy is the desire to “give back” and contribute in a way that makes a difference in the lives of others. There are many ways to give back — sometimes through gifts of time and service, and other times through gifts of cash or property. At the Iowa State University Foundation, we are keenly aware of the economic challenges that lie ahead for 2009. We are optimistic about our ability to meet these challenges with support from donors and friends who recognize the significance of this undertaking. In this economic climate, we are committed to redoubling our efforts and working diligently to help those we serve. And with your help, we can forge an important partnership that will sustain our work during these unpredictable times. In this issue, we focus on helpful information about flexible gifts — ways you can show your support for Iowa State without locking into commitments that eliminate future financial options. You will learn how one couple, Lyle and Marcia Higgins, created a scholarship that not only met their needs, but also had an impact on more than 90 undergraduate engineering students last year alone.

Scholarship support is a traditional way many Iowa State University benefactors have supported the university over the years. In fact, more than 550 new scholarships have been created since Campaign Iowa State: With Pride and Purpose was launched. But few scholarships have had the type of impact on campus that the new Lyle J. and Marcia L. Higgins Engineering Scholarship Fund has had on engineering students. During the 2008-09 academic year alone, more than 90 aerospace, agricultural, chemical, civil, computer, construction, electrical, industrial, materials, and mechanical engineering students received the Higgins Engineering Scholarship. The scholarships ranged from $1,000 to $2,500 per student and were awarded based upon financial

Please take a few moments to read further; considering these ideas should be well worth your time investment. We also invite you to use the enclosed card to send for our complimentary brochure, Flexible Gifts: Easy to Make, Easy to Live With. It provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Flexible gifts are a safe and purposeful way to demonstrate your philanthropic commitment. Please let us know if we can help you and your financial advisors further explore these options.

Lynda M. Jacobson Assistant Vice President of Development Office of Gift Planning ljacobson@foundation.iastate.edu 515.294.4049 ❙ 800.621.8515

“I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” – Scott Higgins need and academic merit. Recipients may renew the scholarships upon reapplication and continued compliance with the stated criteria. “The total amount the college awarded through the Higgins Engineering Scholarships represents just over 6 percent of the total scholarship awards that the College of Engineering distributes to its undergraduate students,” said Diane Rover, associate dean for academic and student affairs. “A gift of this size can make a significant impact on our scholarship program.”

Other Options for 2009 – Support Iowa State University, Receive Personal Benefits During challenging economic times, caution is the byword for financial decisions. Nonetheless, there are smart yet cautious moves you can make — steps beyond flexible gifts — that will benefit you and us. The charitable gift annuity is one option. In exchange for a gift of cash or property, we promise to pay you a fixed income for the rest of your life — an amount that will not change, and you never need renegotiate or renew the agreement. What’s more, you’ll be eligible for an income tax charitable deduction based on the value of your gift. Gift annuity payout rates are higher than you might expect.. Another option to consider is the deferred charitable gift annuity, which offers tax benefits now but begins payments at a future date. Compared to the “traditional” gift annuity, there are two distinct additional advantages with the deferred charitable gift annuity. All other factors being equal, 1) the payment rate is higher, and 2) the tax deduction is greater. Please let us know (by phone, e-mail, or using the enclosed card) if we can help you explore how a charitable gift annuity might help meet your philanthropic and personal financial goals.

Find a planning option that benefits you and Iowa State

Lyle and Marcia Higgins established the scholarship through a bequest. Upon Marcia’s death in 2003, a credit shelter trust was established to benefit College of Engineering students. When Lyle, a 1957 industrial engineering graduate of Iowa State, passed away in 2006, the proceeds from his estate/bequest also went into the general scholarship, creating a $2.6 million endowment. A charitable bequest like the Higgins’ scholarship fund is easy to create. Such a method is risk-free because donors retain full use of the gift property throughout their lifetime, with no out-of-pocket cost. It also allows individuals like Lyle and Marcia Higgins to make sure that their bequest goes to a program they would like to support. The couple decided they wanted to support education, specifically engineering scholarships, with the proceeds of their estates. “I just received the annual endowment activity report (for this scholarship) the other day and saw that more than 90 students were awarded scholarships this year!” writes Scott Higgins, the couple’s nephew. “I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” It’s also a great feeling for the 90 engineering students who received the scholarship, including Alex Clemons. “I hadn’t considered attending a school outside of my home state of

We hope you have found useful ideas in this issue of Insights. To further aid your planning, send for a complimentary copy of the booklets listed below, with no obligation. Simply fill out this tear-off card, fold and tape it on the open end, and drop it in the mail to us. We’ll pick up the postage.

“If it weren’t for scholorships like the Higgins Scholorship, I would not be able to attend Iowa State ” – Alex Clemons Minnesota, but I fell in love with Iowa State and Ames when I visited,” said the junior majoring in industrial engineering. “If it weren’t for scholarships like the Higgins Engineering Scholarship, I would not be able to attend Iowa State. “I know that the overall experience I’m having here is invaluable and I can’t stress enough how grateful I am for the donors that make it possible.” Joel Johnson, director of student programs and services in the College of Engineering, agrees. “It’s exciting to have the opportunity to make such a difference in so many students’ lives,” he said.

Please send a complimentary copy of: Flexible Gifts: Easy to Make, Easy to Live With, a brochure that provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Personal Financial Affairs: Your Book of Records, a helpful planning guide for documenting important information. Taxpayer’s Home Companion for 2008 Returns Due in April 2009, an overview of the 2008 tax rules including those affecting charitable gifts. I’m interested in discussing the various ways to support Iowa State. Please contact me ____ by phone ____ by e-mail to talk about these possibilities.

Some of the current recipients of the Lyle J. and Marcia L. Higgins Engineering Scholarship.

Please sign me up for your free e-newsletter. E-mail address below.

Estate bequests can be established for faculty positions Scholarship support isn’t the only area where Iowa State benefactors can use estate bequests to assist the university. Several new endowed faculty positions have been established during Campaign Iowa State: With Pride and Purpose through this method.

NAME

A recent example of this is the Kirby Gray Chair in the College of Engineering. This chair was established through a bequest of Kirby Gray, a 1945 electrical engineering graduate who died in 2008.

ADDRESS

Gray had established a unitrust or charitable remainder trust. This legal device is frequently used by individuals who wish to make a substantial contribution to a school or charitable organization.

CITY

In order to establish a unitrust, a donor transfers property to a trust while retaining the right to receive payments from the trust for a term chosen by the donor. The payments may continue for the lifetime of the trust’s named beneficiaries, a fixed term of not more than 20 years, or a combination of the two. Iowa State leveraged a portion of the Gray bequest to establish the endowed faculty position in the College of Engineering with $500,000 from an appropriation from the Iowa Department of Economic Development.

STATE, ZIP

TELEPHONE

E-MAIL

Marston Hall, home of the College of Engineering at Iowa State University.

INFG0209

Iowa State University Foundation INSIGHTS

2

3

Visit us online at www.isugift.org

4


Reserve the Right to Keep Your Options Open

Gift has Lasting Impact on Engineering Students

Flexible Philanthropy At the heart of philanthropy is the desire to “give back” and contribute in a way that makes a difference in the lives of others. There are many ways to give back — sometimes through gifts of time and service, and other times through gifts of cash or property. At the Iowa State University Foundation, we are keenly aware of the economic challenges that lie ahead for 2009. We are optimistic about our ability to meet these challenges with support from donors and friends who recognize the significance of this undertaking. In this economic climate, we are committed to redoubling our efforts and working diligently to help those we serve. And with your help, we can forge an important partnership that will sustain our work during these unpredictable times. In this issue, we focus on helpful information about flexible gifts — ways you can show your support for Iowa State without locking into commitments that eliminate future financial options. You will learn how one couple, Lyle and Marcia Higgins, created a scholarship that not only met their needs, but also had an impact on more than 90 undergraduate engineering students last year alone.

Scholarship support is a traditional way many Iowa State University benefactors have supported the university over the years. In fact, more than 550 new scholarships have been created since Campaign Iowa State: With Pride and Purpose was launched. But few scholarships have had the type of impact on campus that the new Lyle J. and Marcia L. Higgins Engineering Scholarship Fund has had on engineering students. During the 2008-09 academic year alone, more than 90 aerospace, agricultural, chemical, civil, computer, construction, electrical, industrial, materials, and mechanical engineering students received the Higgins Engineering Scholarship. The scholarships ranged from $1,000 to $2,500 per student and were awarded based upon financial

Please take a few moments to read further; considering these ideas should be well worth your time investment. We also invite you to use the enclosed card to send for our complimentary brochure, Flexible Gifts: Easy to Make, Easy to Live With. It provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Flexible gifts are a safe and purposeful way to demonstrate your philanthropic commitment. Please let us know if we can help you and your financial advisors further explore these options.

Lynda M. Jacobson Assistant Vice President of Development Office of Gift Planning ljacobson@foundation.iastate.edu 515.294.4049 ❙ 800.621.8515

“I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” – Scott Higgins need and academic merit. Recipients may renew the scholarships upon reapplication and continued compliance with the stated criteria. “The total amount the college awarded through the Higgins Engineering Scholarships represents just over 6 percent of the total scholarship awards that the College of Engineering distributes to its undergraduate students,” said Diane Rover, associate dean for academic and student affairs. “A gift of this size can make a significant impact on our scholarship program.”

Other Options for 2009 – Support Iowa State University, Receive Personal Benefits During challenging economic times, caution is the byword for financial decisions. Nonetheless, there are smart yet cautious moves you can make — steps beyond flexible gifts — that will benefit you and us. The charitable gift annuity is one option. In exchange for a gift of cash or property, we promise to pay you a fixed income for the rest of your life — an amount that will not change, and you never need renegotiate or renew the agreement. What’s more, you’ll be eligible for an income tax charitable deduction based on the value of your gift. Gift annuity payout rates are higher than you might expect.. Another option to consider is the deferred charitable gift annuity, which offers tax benefits now but begins payments at a future date. Compared to the “traditional” gift annuity, there are two distinct additional advantages with the deferred charitable gift annuity. All other factors being equal, 1) the payment rate is higher, and 2) the tax deduction is greater. Please let us know (by phone, e-mail, or using the enclosed card) if we can help you explore how a charitable gift annuity might help meet your philanthropic and personal financial goals.

Find a planning option that benefits you and Iowa State

Lyle and Marcia Higgins established the scholarship through a bequest. Upon Marcia’s death in 2003, a credit shelter trust was established to benefit College of Engineering students. When Lyle, a 1957 industrial engineering graduate of Iowa State, passed away in 2006, the proceeds from his estate/bequest also went into the general scholarship, creating a $2.6 million endowment. A charitable bequest like the Higgins’ scholarship fund is easy to create. Such a method is risk-free because donors retain full use of the gift property throughout their lifetime, with no out-of-pocket cost. It also allows individuals like Lyle and Marcia Higgins to make sure that their bequest goes to a program they would like to support. The couple decided they wanted to support education, specifically engineering scholarships, with the proceeds of their estates. “I just received the annual endowment activity report (for this scholarship) the other day and saw that more than 90 students were awarded scholarships this year!” writes Scott Higgins, the couple’s nephew. “I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” It’s also a great feeling for the 90 engineering students who received the scholarship, including Alex Clemons. “I hadn’t considered attending a school outside of my home state of

We hope you have found useful ideas in this issue of Insights. To further aid your planning, send for a complimentary copy of the booklets listed below, with no obligation. Simply fill out this tear-off card, fold and tape it on the open end, and drop it in the mail to us. We’ll pick up the postage.

“If it weren’t for scholorships like the Higgins Scholorship, I would not be able to attend Iowa State ” – Alex Clemons Minnesota, but I fell in love with Iowa State and Ames when I visited,” said the junior majoring in industrial engineering. “If it weren’t for scholarships like the Higgins Engineering Scholarship, I would not be able to attend Iowa State. “I know that the overall experience I’m having here is invaluable and I can’t stress enough how grateful I am for the donors that make it possible.” Joel Johnson, director of student programs and services in the College of Engineering, agrees. “It’s exciting to have the opportunity to make such a difference in so many students’ lives,” he said.

Please send a complimentary copy of: Flexible Gifts: Easy to Make, Easy to Live With, a brochure that provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Personal Financial Affairs: Your Book of Records, a helpful planning guide for documenting important information. Taxpayer’s Home Companion for 2008 Returns Due in April 2009, an overview of the 2008 tax rules including those affecting charitable gifts. I’m interested in discussing the various ways to support Iowa State. Please contact me ____ by phone ____ by e-mail to talk about these possibilities.

Some of the current recipients of the Lyle J. and Marcia L. Higgins Engineering Scholarship.

Please sign me up for your free e-newsletter. E-mail address below.

Estate bequests can be established for faculty positions Scholarship support isn’t the only area where Iowa State benefactors can use estate bequests to assist the university. Several new endowed faculty positions have been established during Campaign Iowa State: With Pride and Purpose through this method.

NAME

A recent example of this is the Kirby Gray Chair in the College of Engineering. This chair was established through a bequest of Kirby Gray, a 1945 electrical engineering graduate who died in 2008.

ADDRESS

Gray had established a unitrust or charitable remainder trust. This legal device is frequently used by individuals who wish to make a substantial contribution to a school or charitable organization.

CITY

In order to establish a unitrust, a donor transfers property to a trust while retaining the right to receive payments from the trust for a term chosen by the donor. The payments may continue for the lifetime of the trust’s named beneficiaries, a fixed term of not more than 20 years, or a combination of the two. Iowa State leveraged a portion of the Gray bequest to establish the endowed faculty position in the College of Engineering with $500,000 from an appropriation from the Iowa Department of Economic Development.

STATE, ZIP

TELEPHONE

E-MAIL

Marston Hall, home of the College of Engineering at Iowa State University.

INFG0209

Iowa State University Foundation INSIGHTS

2

3

Visit us online at www.isugift.org

4


WINTER 2009

Bequests: No Risks, No Regrets

INSIGHTS

Making a Difference Our work is accomplished only through the generosity of our friends and supporters. All gifts — small, large and in-between — have a significant impact on our mission. All are important. All are valued. Thank you for considering the ways you can make a difference at Iowa State University. Now may be the right time to review your estate plan, and our brochures can help:

A CHARITABLE PLANNING GUIDE FOR ISU ALUMNI AND FRIENDS

Gift Planning Staff: (L-R) Gregg Hinders, Administrative Coordinator Lynda M. Jacobson, Assistant Vice President of Development Paul Caspersen, CFP®, CMFC, Executive Director of Development

Flexible Gifts — Easy to Make, Easy to Live With

Beneficiary Designations and Options

Personal Financial Affairs — Your Book of Records

Name us as a life insurance beneficiary

Taxpayer’s Home Companion — For 2008 Returns Due in April 2009

You may have a life insurance policy that is no longer needed. Perhaps it was purchased to pay off a mortgage or set up a college fund in the event of your death, and now the mortgage is paid and the kids are grown. You can name the Iowa State University Foundation as the beneficiary or contingent beneficiary of that policy. You’ll be assured that the policy proceeds are used in the way you would prefer, and it costs you nothing. Just contact your insurance agent to request a change of beneficiary form.

As always, it would be our pleasure to answer any questions or help you with gift planning ideas. E-mail us at giftplanning@foundation.iastate.edu or please call 800.621.8515 to talk with us today.

giftplanning@foundation.iastate.edu The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.

OFFICE OF GIFT PLANNING 2505 UNIVERSITY BOULEVARD P. O. BOX 2230 AMES, IA 50010-2230

PHONE: 515.294.5398 TOLL-FREE: 800.621.8515 www.withprideandpurpose.org giftplanning@foundation.iastate.edu

IN THIS ISSUE ... 2 More planning options for 2009 5 Charitable bequests: a riskfree way to make an impact 5 Beneficiary designations: simple and effective

Smart reasons to name us as an IRA or 401(k) beneficiary You may have more than one retirement plan, perhaps including a traditional IRA or 401(k) plan. If your financial goals include providing for loved ones and Iowa State University, there’s a good reason to consider naming the Iowa State University Foundation as beneficiary of one of these tax-deferred accounts while leaving other assets to family members. IRA or 401(k) assets left to family members or heirs are subject to income tax on the distribution. But since the Iowa State University Foundation is a qualified charitable organ-ization, assets left to us are received in full, with no income tax due.

Cover all bases with your savings and checking accounts

More Planning Options for 2009

One more option for making a flexible gift is to set up a payable on death designation for your savings and checking accounts. Your bank can provide the proper form. With a payable on death designation, funds in the account are the time of your death are payable directly to the person or charitable organization that you name. Funds avoid the probate process, and you have the right to change the designation at any time. You can designate a primary beneficiary and a contingent beneficiary, which means you can leave funds to a loved one first, naming us as a second option.

Charitable Bequests – A Riskfree Way to Make an Impact

Deferred gift has lasting impact on engineering students INSIDE THIS ISSUE ...

The choices are nearly endless when deciding what to give through a charitable bequest. A bequest can be specific property, such as a coin collection, a work of art, or real estate. A charitable bequest can be a specific dollar amount or an amount expressed as a percentage of the total value of your estate. Or, a bequest can even be contingent upon an event or the existence of certain circumstances.

assures that your house will not go to unintended beneficiaries. There’s much more to learn about charitable bequests and your options. For more information, return the enclosed reply card and ask for our free brochure, Flexible Gifts: Easy to Make, Easy to Live With.

The Lyle J. and Marcia L. Higgins Engineering Scholarship Fund

Choices when planning a charitable bequest

Example: In your will, you state that your sister will receive your house when you die. But you have included a contingent provision in your bequest stating that, if you predecease your sister, the Iowa State University Foundation will receive the house. This arrangement

IOWA STATE UNIVERSITY FOUNDATION 2505 UNIVERSITY BOULEVARD P.O.B OX 2230 AMES, IA 50010-2230

Few gifts are as simple to arrange as the charitable bequest. A bequest is a gift made through your will. Bequests are risk free because you retain full use of the gift property throughout your lifetime and there is no out-of-pocket cost. And you can change a bequest at any time to meet changing conditions or changing philanthropic goals. The key to a meaningful charitable bequest is an up-to-date will. If you do not have a will, we encourage you to see your attorney to put your will in place. It is the only way to make certain your exact intentions are carried out upon your death, and it is the best way to protect loved ones and provide for the charities you care about. If you have a will but want to revise it to include a bequest to the Iowa State University Foundation, the process is an easy one. Your attorney can likely update your will with a simple codicil. Making revisions or additions to your will does not necessarily require that you write a new will.

I O WA S TAT E U N I V E R S I T Y F O U N D AT I O N

Visit us online at www.isugift.org 5


WINTER 2009

Bequests: No Risks, No Regrets

INSIGHTS

Making a Difference Our work is accomplished only through the generosity of our friends and supporters. All gifts — small, large and in-between — have a significant impact on our mission. All are important. All are valued. Thank you for considering the ways you can make a difference at Iowa State University. Now may be the right time to review your estate plan, and our brochures can help:

A CHARITABLE PLANNING GUIDE FOR ISU ALUMNI AND FRIENDS

Gift Planning Staff: (L-R) Gregg Hinders, Administrative Coordinator Lynda M. Jacobson, Assistant Vice President of Development Paul Caspersen, CFP®, CMFC, Executive Director of Development

Flexible Gifts — Easy to Make, Easy to Live With

Beneficiary Designations and Options

Personal Financial Affairs — Your Book of Records

Name us as a life insurance beneficiary

Taxpayer’s Home Companion — For 2008 Returns Due in April 2009

You may have a life insurance policy that is no longer needed. Perhaps it was purchased to pay off a mortgage or set up a college fund in the event of your death, and now the mortgage is paid and the kids are grown. You can name the Iowa State University Foundation as the beneficiary or contingent beneficiary of that policy. You’ll be assured that the policy proceeds are used in the way you would prefer, and it costs you nothing. Just contact your insurance agent to request a change of beneficiary form.

As always, it would be our pleasure to answer any questions or help you with gift planning ideas. E-mail us at giftplanning@foundation.iastate.edu or please call 800.621.8515 to talk with us today.

giftplanning@foundation.iastate.edu The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.

OFFICE OF GIFT PLANNING 2505 UNIVERSITY BOULEVARD P. O. BOX 2230 AMES, IA 50010-2230

PHONE: 515.294.5398 TOLL-FREE: 800.621.8515 www.withprideandpurpose.org giftplanning@foundation.iastate.edu

IN THIS ISSUE ... 2 More planning options for 2009 5 Charitable bequests: a riskfree way to make an impact 5 Beneficiary designations: simple and effective

Smart reasons to name us as an IRA or 401(k) beneficiary You may have more than one retirement plan, perhaps including a traditional IRA or 401(k) plan. If your financial goals include providing for loved ones and Iowa State University, there’s a good reason to consider naming the Iowa State University Foundation as beneficiary of one of these tax-deferred accounts while leaving other assets to family members. IRA or 401(k) assets left to family members or heirs are subject to income tax on the distribution. But since the Iowa State University Foundation is a qualified charitable organ-ization, assets left to us are received in full, with no income tax due.

Cover all bases with your savings and checking accounts

More Planning Options for 2009

One more option for making a flexible gift is to set up a payable on death designation for your savings and checking accounts. Your bank can provide the proper form. With a payable on death designation, funds in the account are the time of your death are payable directly to the person or charitable organization that you name. Funds avoid the probate process, and you have the right to change the designation at any time. You can designate a primary beneficiary and a contingent beneficiary, which means you can leave funds to a loved one first, naming us as a second option.

Charitable Bequests – A Riskfree Way to Make an Impact

Deferred gift has lasting impact on engineering students INSIDE THIS ISSUE ...

The choices are nearly endless when deciding what to give through a charitable bequest. A bequest can be specific property, such as a coin collection, a work of art, or real estate. A charitable bequest can be a specific dollar amount or an amount expressed as a percentage of the total value of your estate. Or, a bequest can even be contingent upon an event or the existence of certain circumstances.

assures that your house will not go to unintended beneficiaries. There’s much more to learn about charitable bequests and your options. For more information, return the enclosed reply card and ask for our free brochure, Flexible Gifts: Easy to Make, Easy to Live With.

The Lyle J. and Marcia L. Higgins Engineering Scholarship Fund

Choices when planning a charitable bequest

Example: In your will, you state that your sister will receive your house when you die. But you have included a contingent provision in your bequest stating that, if you predecease your sister, the Iowa State University Foundation will receive the house. This arrangement

IOWA STATE UNIVERSITY FOUNDATION 2505 UNIVERSITY BOULEVARD P.O.B OX 2230 AMES, IA 50010-2230

Few gifts are as simple to arrange as the charitable bequest. A bequest is a gift made through your will. Bequests are risk free because you retain full use of the gift property throughout your lifetime and there is no out-of-pocket cost. And you can change a bequest at any time to meet changing conditions or changing philanthropic goals. The key to a meaningful charitable bequest is an up-to-date will. If you do not have a will, we encourage you to see your attorney to put your will in place. It is the only way to make certain your exact intentions are carried out upon your death, and it is the best way to protect loved ones and provide for the charities you care about. If you have a will but want to revise it to include a bequest to the Iowa State University Foundation, the process is an easy one. Your attorney can likely update your will with a simple codicil. Making revisions or additions to your will does not necessarily require that you write a new will.

I O WA S TAT E U N I V E R S I T Y F O U N D AT I O N

Visit us online at www.isugift.org 5


Reserve the Right to Keep Your Options Open

Gift has Lasting Impact on Engineering Students

Flexible Philanthropy At the heart of philanthropy is the desire to “give back” and contribute in a way that makes a difference in the lives of others. There are many ways to give back — sometimes through gifts of time and service, and other times through gifts of cash or property. At the Iowa State University Foundation, we are keenly aware of the economic challenges that lie ahead for 2009. We are optimistic about our ability to meet these challenges with support from donors and friends who recognize the significance of this undertaking. In this economic climate, we are committed to redoubling our efforts and working diligently to help those we serve. And with your help, we can forge an important partnership that will sustain our work during these unpredictable times. In this issue, we focus on helpful information about flexible gifts — ways you can show your support for Iowa State without locking into commitments that eliminate future financial options. You will learn how one couple, Lyle and Marcia Higgins, created a scholarship that not only met their needs, but also had an impact on more than 90 undergraduate engineering students last year alone.

Scholarship support is a traditional way many Iowa State University benefactors have supported the university over the years. In fact, more than 550 new scholarships have been created since Campaign Iowa State: With Pride and Purpose was launched. But few scholarships have had the type of impact on campus that the new Lyle J. and Marcia L. Higgins Engineering Scholarship Fund has had on engineering students. During the 2008-09 academic year alone, more than 90 aerospace, agricultural, chemical, civil, computer, construction, electrical, industrial, materials, and mechanical engineering students received the Higgins Engineering Scholarship. The scholarships ranged from $1,000 to $2,500 per student and were awarded based upon financial

Please take a few moments to read further; considering these ideas should be well worth your time investment. We also invite you to use the enclosed card to send for our complimentary brochure, Flexible Gifts: Easy to Make, Easy to Live With. It provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Flexible gifts are a safe and purposeful way to demonstrate your philanthropic commitment. Please let us know if we can help you and your financial advisors further explore these options.

Lynda M. Jacobson Assistant Vice President of Development Office of Gift Planning ljacobson@foundation.iastate.edu 515.294.4049 ❙ 800.621.8515

“I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” – Scott Higgins need and academic merit. Recipients may renew the scholarships upon reapplication and continued compliance with the stated criteria. “The total amount the college awarded through the Higgins Engineering Scholarships represents just over 6 percent of the total scholarship awards that the College of Engineering distributes to its undergraduate students,” said Diane Rover, associate dean for academic and student affairs. “A gift of this size can make a significant impact on our scholarship program.”

Other Options for 2009 – Support Iowa State University, Receive Personal Benefits During challenging economic times, caution is the byword for financial decisions. Nonetheless, there are smart yet cautious moves you can make — steps beyond flexible gifts — that will benefit you and us. The charitable gift annuity is one option. In exchange for a gift of cash or property, we promise to pay you a fixed income for the rest of your life — an amount that will not change, and you never need renegotiate or renew the agreement. What’s more, you’ll be eligible for an income tax charitable deduction based on the value of your gift. Gift annuity payout rates are higher than you might expect.. Another option to consider is the deferred charitable gift annuity, which offers tax benefits now but begins payments at a future date. Compared to the “traditional” gift annuity, there are two distinct additional advantages with the deferred charitable gift annuity. All other factors being equal, 1) the payment rate is higher, and 2) the tax deduction is greater. Please let us know (by phone, e-mail, or using the enclosed card) if we can help you explore how a charitable gift annuity might help meet your philanthropic and personal financial goals.

Find a planning option that benefits you and Iowa State

Lyle and Marcia Higgins established the scholarship through a bequest. Upon Marcia’s death in 2003, a credit shelter trust was established to benefit College of Engineering students. When Lyle, a 1957 industrial engineering graduate of Iowa State, passed away in 2006, the proceeds from his estate/bequest also went into the general scholarship, creating a $2.6 million endowment. A charitable bequest like the Higgins’ scholarship fund is easy to create. Such a method is risk-free because donors retain full use of the gift property throughout their lifetime, with no out-of-pocket cost. It also allows individuals like Lyle and Marcia Higgins to make sure that their bequest goes to a program they would like to support. The couple decided they wanted to support education, specifically engineering scholarships, with the proceeds of their estates. “I just received the annual endowment activity report (for this scholarship) the other day and saw that more than 90 students were awarded scholarships this year!” writes Scott Higgins, the couple’s nephew. “I know that this is exactly the impact Lyle and Marcia were hoping to have, and it’s a great feeling for me to see it happen.” It’s also a great feeling for the 90 engineering students who received the scholarship, including Alex Clemons. “I hadn’t considered attending a school outside of my home state of

We hope you have found useful ideas in this issue of Insights. To further aid your planning, send for a complimentary copy of the booklets listed below, with no obligation. Simply fill out this tear-off card, fold and tape it on the open end, and drop it in the mail to us. We’ll pick up the postage.

“If it weren’t for scholorships like the Higgins Scholorship, I would not be able to attend Iowa State ” – Alex Clemons Minnesota, but I fell in love with Iowa State and Ames when I visited,” said the junior majoring in industrial engineering. “If it weren’t for scholarships like the Higgins Engineering Scholarship, I would not be able to attend Iowa State. “I know that the overall experience I’m having here is invaluable and I can’t stress enough how grateful I am for the donors that make it possible.” Joel Johnson, director of student programs and services in the College of Engineering, agrees. “It’s exciting to have the opportunity to make such a difference in so many students’ lives,” he said.

Please send a complimentary copy of: Flexible Gifts: Easy to Make, Easy to Live With, a brochure that provides additional tips on gift plans that can be adjusted in response to changing needs and goals. Personal Financial Affairs: Your Book of Records, a helpful planning guide for documenting important information. Taxpayer’s Home Companion for 2008 Returns Due in April 2009, an overview of the 2008 tax rules including those affecting charitable gifts. I’m interested in discussing the various ways to support Iowa State. Please contact me ____ by phone ____ by e-mail to talk about these possibilities.

Some of the current recipients of the Lyle J. and Marcia L. Higgins Engineering Scholarship.

Please sign me up for your free e-newsletter. E-mail address below.

Estate bequests can be established for faculty positions Scholarship support isn’t the only area where Iowa State benefactors can use estate bequests to assist the university. Several new endowed faculty positions have been established during Campaign Iowa State: With Pride and Purpose through this method.

NAME

A recent example of this is the Kirby Gray Chair in the College of Engineering. This chair was established through a bequest of Kirby Gray, a 1945 electrical engineering graduate who died in 2008.

ADDRESS

Gray had established a unitrust or charitable remainder trust. This legal device is frequently used by individuals who wish to make a substantial contribution to a school or charitable organization.

CITY

In order to establish a unitrust, a donor transfers property to a trust while retaining the right to receive payments from the trust for a term chosen by the donor. The payments may continue for the lifetime of the trust’s named beneficiaries, a fixed term of not more than 20 years, or a combination of the two. Iowa State leveraged a portion of the Gray bequest to establish the endowed faculty position in the College of Engineering with $500,000 from an appropriation from the Iowa Department of Economic Development.

STATE, ZIP

TELEPHONE

E-MAIL

Marston Hall, home of the College of Engineering at Iowa State University.

INFG0209

Iowa State University Foundation INSIGHTS

2

3

Visit us online at www.isugift.org

4


WINTER 2009

Bequests: No Risks, No Regrets

INSIGHTS

Making a Difference Our work is accomplished only through the generosity of our friends and supporters. All gifts — small, large and in-between — have a significant impact on our mission. All are important. All are valued. Thank you for considering the ways you can make a difference at Iowa State University. Now may be the right time to review your estate plan, and our brochures can help:

A CHARITABLE PLANNING GUIDE FOR ISU ALUMNI AND FRIENDS

Gift Planning Staff: (L-R) Gregg Hinders, Administrative Coordinator Lynda M. Jacobson, Assistant Vice President of Development Paul Caspersen, CFP®, CMFC, Executive Director of Development

Flexible Gifts — Easy to Make, Easy to Live With

Beneficiary Designations and Options

Personal Financial Affairs — Your Book of Records

Name us as a life insurance beneficiary

Taxpayer’s Home Companion — For 2008 Returns Due in April 2009

You may have a life insurance policy that is no longer needed. Perhaps it was purchased to pay off a mortgage or set up a college fund in the event of your death, and now the mortgage is paid and the kids are grown. You can name the Iowa State University Foundation as the beneficiary or contingent beneficiary of that policy. You’ll be assured that the policy proceeds are used in the way you would prefer, and it costs you nothing. Just contact your insurance agent to request a change of beneficiary form.

As always, it would be our pleasure to answer any questions or help you with gift planning ideas. E-mail us at giftplanning@foundation.iastate.edu or please call 800.621.8515 to talk with us today.

giftplanning@foundation.iastate.edu The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.

OFFICE OF GIFT PLANNING 2505 UNIVERSITY BOULEVARD P. O. BOX 2230 AMES, IA 50010-2230

PHONE: 515.294.5398 TOLL-FREE: 800.621.8515 www.withprideandpurpose.org giftplanning@foundation.iastate.edu

IN THIS ISSUE ... 2 More planning options for 2009 5 Charitable bequests: a riskfree way to make an impact 5 Beneficiary designations: simple and effective

Smart reasons to name us as an IRA or 401(k) beneficiary You may have more than one retirement plan, perhaps including a traditional IRA or 401(k) plan. If your financial goals include providing for loved ones and Iowa State University, there’s a good reason to consider naming the Iowa State University Foundation as beneficiary of one of these tax-deferred accounts while leaving other assets to family members. IRA or 401(k) assets left to family members or heirs are subject to income tax on the distribution. But since the Iowa State University Foundation is a qualified charitable organ-ization, assets left to us are received in full, with no income tax due.

Cover all bases with your savings and checking accounts

More Planning Options for 2009

One more option for making a flexible gift is to set up a payable on death designation for your savings and checking accounts. Your bank can provide the proper form. With a payable on death designation, funds in the account are the time of your death are payable directly to the person or charitable organization that you name. Funds avoid the probate process, and you have the right to change the designation at any time. You can designate a primary beneficiary and a contingent beneficiary, which means you can leave funds to a loved one first, naming us as a second option.

Charitable Bequests – A Riskfree Way to Make an Impact

Deferred gift has lasting impact on engineering students INSIDE THIS ISSUE ...

The choices are nearly endless when deciding what to give through a charitable bequest. A bequest can be specific property, such as a coin collection, a work of art, or real estate. A charitable bequest can be a specific dollar amount or an amount expressed as a percentage of the total value of your estate. Or, a bequest can even be contingent upon an event or the existence of certain circumstances.

assures that your house will not go to unintended beneficiaries. There’s much more to learn about charitable bequests and your options. For more information, return the enclosed reply card and ask for our free brochure, Flexible Gifts: Easy to Make, Easy to Live With.

The Lyle J. and Marcia L. Higgins Engineering Scholarship Fund

Choices when planning a charitable bequest

Example: In your will, you state that your sister will receive your house when you die. But you have included a contingent provision in your bequest stating that, if you predecease your sister, the Iowa State University Foundation will receive the house. This arrangement

IOWA STATE UNIVERSITY FOUNDATION 2505 UNIVERSITY BOULEVARD P.O.B OX 2230 AMES, IA 50010-2230

Few gifts are as simple to arrange as the charitable bequest. A bequest is a gift made through your will. Bequests are risk free because you retain full use of the gift property throughout your lifetime and there is no out-of-pocket cost. And you can change a bequest at any time to meet changing conditions or changing philanthropic goals. The key to a meaningful charitable bequest is an up-to-date will. If you do not have a will, we encourage you to see your attorney to put your will in place. It is the only way to make certain your exact intentions are carried out upon your death, and it is the best way to protect loved ones and provide for the charities you care about. If you have a will but want to revise it to include a bequest to the Iowa State University Foundation, the process is an easy one. Your attorney can likely update your will with a simple codicil. Making revisions or additions to your will does not necessarily require that you write a new will.

I O WA S TAT E U N I V E R S I T Y F O U N D AT I O N

Visit us online at www.isugift.org 5

Insights Winter 2009  

Insights Winter 2009

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