Page 1

Diamond C h a r i ta b l e


f i n a n c i a l

g i f t

p l a n n i n g

n e w s l e t t e r


A shared path leads to a heartfelt legacy F a l l 2 0 11 | v o l 7 I s s u e 2


Buddy and Virginia’s Gifts for Heart and Mind

For many years, Irving B. “Buddy” Spitz was the warm and attentive host at the Theatrical Grill, once downtown Cleveland’s most popular location for fine food, quality entertainment and human connection. At the Theatrical on Short Vincent off East Ninth Street, Buddy welcomed the movers and shakers and all those others who simply wanted to be “where the action was.” He ran the place warmly and well yet ... Continued on page 2 A generosity of spirit, shining for generations


Honoring UH HarringtonMcLaughlin Heart & Vascular Institute Physicians 4, 5, 6

Gift Options in 2011 UH Highlights 7

UH Diamond Advisory Group Annual Meeting 8

Diamond Heirlooms

Continued from page 1

he also demonstrated a head for numbers and a financial acumen that would later prove far more lucrative than the restaurant. The Theatrical ended with the millennium but memories live on for so many people who walked through its doors. After nearly 25 years of marriage, Buddy and his wife, Virginia, cherish the memories of their lives together and enjoy spending time with their six children and 11 loving grandchildren. Not long after they married, Buddy had extensive coronary bypass surgery performed by Alan H. Markowitz, MD, Chief Surgical Officer, UH Harrington-McLaughlin Heart & Vascular Institute; Marcella “Dolly” Haugh Chair in Valvular Surgery. The lifesaving impact of that surgery was one of several reasons why University Hospitals is Buddy and Virginia’s hospital. They have relied on UH when there were health challenges. It was also the place they trusted for routine care to ensure continued good health. Today, the Spitzes together are enduring Buddy’s cognitive deficits associated with aging. He laughs, beams and clearly remains a man lovingly aware of the world that holds his wife and family. Yet, the crystalline mind that not long ago made dramatically successful investment choices has clouded over. Alzheimer’s is an inescapable fact which drives the Spitzes’ emotions and philanthropy. “He used to balance checkbooks to the penny,” said Virginia. “Our advisor Jon Pinney (UH Diamond Advisory Group member, see page 7) told him, ‘Buddy, I wish you had taught me how to invest.’ But now it’s hard. “It’s a very difficult condition,” added Virginia. “I want to help. We want to help. It makes us very happy to give back to University Hospitals.” A G i f t Fr o m t h e H e art

Earlier this year, the Spitzes made a very generous gift to UH Harrington-McLaughlin Heart & Vascular Institute in honor of the exceptional and compassionate care provided by James C. Fang, MD, Chief Medical Officer, and Judith A. Mackall, MD, Section Chief, Electrophysiology. This gift established the Spitz Master Clinician in Cardiology, recognizing Dr. Fang for his dedication, exceptional medical care, development of new therapies for patients with heart failure and training of residents and physicians in the diagnosis and treatment of cardiac conditions. Income generated from the principal of the endowed fund supports Dr. Fang’s clinical research and other key endeavors. 2

D i a m o n d

A generosity of spirit, shining for generations

“The generosity of Buddy and Virginia Spitz is overwhelming,” said Daniel I. Simon, MD, Director, UH Harrington-McLaughlin Heart & Vascular Institute; Chief, Division of Cardiovascular Medicine; Herman K. Hellerstein, MD, Chair in Cardiovascular Research. “By creating the Spitz Master Clinician in Cardiology, their gift will have an enormous impact on the health of cardiovascular patients at University Hospitals, supporting innovative clinical research and educational programs led by Dr. Fang, a true master clinician in advanced heart failure.” With the help of their advisors, Jon J. Pinney, Esq. and Karen L. Greco, Esq., the Spitzes created a charitable lead trust to support UH. To learn more about the unique opportunity currently available with this gift option, see page 6. A Gift to Remember

Recently, the Spitzes made a second generous gift to support University Hospitals. This heartfelt gift will create the Spitz Brain Health Innovation Fund at UH Neurological Institute. The fund will support the Brain Health Collaborative at UH Case Medical Center, as well as other neurological initiatives under the direction of the Chairman of the Department of Neurology, Anthony J. Furlan, MD. The fund is particularly focused on supporting pilot studies examining brain executive function and memory in health and disease. Social engagement, healthy diet, cognitive activities, and nurturing a sense of purpose and self-reliance in patients with memory and cognitive disorders due to brain disease or injury, are among the key elements of the brain health initiatives. The fund will also support innovative clinical and translational research into the



se mmon cau the most co is se a e is d er’s • Alzheim dementia ry loss and o .; m e m of d in the U.S ple affecte o e p n o li il 2050 y 5.6 m n cases by • Currentl to 16 millio se ri to d e of their expect individual e th s b ro milies er’s disease and their fa • Alzheim g patients n ti a st va e d identity, ines and new medic d e p lo ve e has d • Research strategies g in iv ter careg w earlier in niques allo ch te ic st o n g • New dia mory loss prevent me to s n o ti n ve

U H g i v i n g . o r g

S pitz G i f t H o n o rs U H Harringt o n M c L aug h lin H e art & V as c ular I nstitut e P h ysi c ians

James C. Fang, MD Renowned for his clinical expertise in cardiovascular disease and as a teacher, James C. Fang, MD, Chief Medical Officer and Medical Director of Heart Failure, Transplantation and Circulatory Assistance at UH Harrington-McLaughlin Heart & Vascular Institute, recently was named the distinguished Spitz Master Clinician in Cardiology. Established in perpetuity, the endowed master clinician honors a physician’s exemplary contributions to the practice and science of his or her medical specialty. Dr. Fang, who trained at Duke University, Johns Hopkins Hospital and the Brigham and Women’s Hospital/Harvard Medical School, joined UH Case Medical Center in 2006. Also a Professor of Medicine at Case Western Reserve University School of Medicine, Dr. Fang has authored numerous scholarly works in medical journals and textbooks and lectures widely. He is an active investigator, has received numerous regional and national teaching awards, and serves on several national committees for the American Heart Association, the American College of Cardiology, the Heart Failure Society of America and the International Society for Heart Lung Transplantation.

Judith A. Mackall, MD Judith A. Mackall, MD, is Section Chief of Electrophysiology at UH Harrington-McLaughlin Heart & Vascular Institute and Co-Director of the Center for Cardiovascular Genetics at UH Case Medical Center. Dr. Mackall joined UH Case Medical Center in 1993 and is Associate Professor of Medicine at Case Western Reserve University School of Medicine. Her special interests include electrophysiology (study of the electrical activity and electrical pathways of the heart), pacemakers and implantable devices, cardiac arrhythmias and device therapy for heart failure. She is currently on the board of the American Heart Association Great Rivers Affiliate.

causes of Alzheimer’s disease and other neurodegenerative conditions, as well as new pharmacological therapies. Spitz award recipients will be recognized as Spitz Scholars. “It is the desire of the Spitzes that future generations will benefit from the Spitz Brain Health Innovation Fund and the work done by the Spitz Scholars. The fund and the scholars will be important in the leading work being done at University Hospitals to understand how the brain functions in health and disease. We are extremely grateful to Buddy and Virginia for this very generous gift,” said Dr. Furlan, Co-Director, UH Neurological Institute. The Spitzes’ attorney, Karen L. Greco, Kohrman Jackson & Krantz, and member of UH Diamond Advisory Group, said, “What I find refreshing about Buddy and Virginia is that they are ordinary people who are doing extraordinary things with their wealth. They prefer to quietly benefit numerous physicians and clinical areas at University Hospitals. Their gifts are a testament to the generosity of spirit that they, and so many others in our community, have shown.” 2 1 6 - 9 8 3 - 2 2 0 0

“I feel gratitude to University Hospitals for the exceptional care we continue to receive,” said Virginia. “It would be wonderful if our gift to the UH Neurological Institute could help others, like Buddy, with Alzheimer’s. This is our shared legacy, from the heart.” fa l l

2 0 1 1


From tax law c hang e s t o ta x - wise planning

Know Your Gift Options ne M an cu so M ich ae l an d Ju are philand June Mancuso Michael “Mike” an d community about the Clevelan thropists who care spitals. and University Ho surgery ke’s lifesaving heart In gratitude for Mi four ed os have establish at UH, the Mancus apprecith wi d nuities, all funde charitable gift an ated securities.


A gift of appreciated stock to University Hospitals provides two distinct and important benefits: • Income tax deduction equal to the stock’s full appreciated value • Capital gains tax avoidance on the increase in stock value


Se tting th e Stage f or a Gi f t o f St o c k Although the markets have been through rough times over the past few years, they still represent enormous wealth for investors. That is why securities are a popular charitable gift. As you think about your year-end planning, you may find there are stocks that you would like to reposition or sell.


As 2011 draws to a close, this article is designed to provide ideas and options that may be helpful in meeting your estate and philanthropic planning needs. Recent changes in the law, along with planning strategies, provide the opportunity to meet your financial goals and make a difference at University Hospitals to advance our mission – To Heal. To Teach. To Discover.


In December 2010, Congress passed and the President signed a new tax law with a few taxpayer-friendly provisions. However, many of the favorable provisions in the law expire at the end of 2011 or 2012.

at the Angie ts will help children Their generous gif Institute at ung Adult Cancer Fowler Child & Yo spital, as well s & Children’s Ho UH Rainbow Babie Harringtonovative work at UH as support the inn in honor of & Vascular Institute McLaughlin Heart witz, MD. , and Alan H. Marko Daniel I. Simon, MD is a simple table gift annuity “For us, the chari ke a difference give back and ma and smart way to Mike. for others,” said


Avoiding the Capital Gains Bite Avoiding the capital gains tax makes it worthwhile to consider a gift of appreciated stock rather than cash as a charitable gift. A gift of appreciated stock held for more than one year will have a greater overall tax savings than a similar gift of cash.

90+ 9.8% *Based on ACGA rates and subject to change 4

D i a m o n d





D ia n e M a r t in In mem ory of h er late Martin husban Sr., and d, Robe in rt J. “B honor o staff, D ob” f the U iane M H a m rt in e dical felt insp to mak e a me ired an aningfu d comp other c l differe elled ancer p nce in th Using Stock to Fund a Charitable Gift Annuity a ti e e lives o n ts medica a n d f their fa l staff, milies. with th When you use stock to establish a charitable gift annuity, you will receive profess “ e T ir h e im peccab ionalism le know , comp lifetime payments based on the amount of your gift and the payout rate our exte ledge, assion nded fa and lov mily fo e, beca for your specific age (see rate chart, left). In addition to fixed lifetime r 14 mo me Diane is nths,” Diane s support payments, you are eligible for an income tax deduction and any capital aid. in g UH S through eidman a deferr C gains tax due can be spread over many years. With an immediate gift annuity, a n e c d er Cente charita was ple ble gift r ased to annuity learn sh payments begin in the year the annuity is established; with a deferred gift payout and e would rate an receive d greate annuity, payments begin at a future date that you designate when the a highe her life r tax de time pa r duction y m e by defe n ts. gift is made. rring Diane’s genero sity wil plaque l be rec in Bob’s ognized memory with a unit at in the m UH Seid edical o man Ca ncolog ncer Ce y nter. S O C I E T Y

Current Gift Annuity Rates* AGE RATE 65 5.3% 70 5.8% 75 6.5% 80 7.5%


Example: Suppose you make a gift of $25,000 in cash and are in the 35% tax bracket. Your income tax deduction for this cash gift results in a tax savings of $8,750. If instead you give 500 shares of appreciated stock (held more than one year) with a value of $25,000 and an original purchase price of $5,000, your tax savings for the gift is $8,750 PLUS the capital gains tax of $3,000 (15% of the $20,000 gain) that would be due if you sold the stock. The total tax savings for this particular gift of stock is $11,750 as compared to $8,750 in tax savings for the cash gift.

A generosity of spirit, shining for generations

U H g i v i n g . o r g


2 11 D C Y L E G A

The IRA charitable rollover lets donors fulfill their RMD by “rolling over” IRA funds directly to University Hospitals up to $100,000 annually. Amounts distributed are excluded from the donor’s income for federal income tax purposes. This provision is a straightforward, simple way to: • satisfy the required minimum distribution rule • avoid income tax on the distribution • realize philanthropic intentions or commitments


Everyone age 70½ or older with a traditional IRA must take an annual required minimum distribution (RMD) or face a stiff penalty. This rule is strictly applied to everyone even if the taxpayer does not want or need the distribution and even if the taxpayer is still working.


I s an I R A C h aritable R oll over yo ur Best C haritabl e Gi f t Opti on ? If you have an IRA and are age 70½ or older and want to support University Hospitals, the IRA charitable rollover could be your best gift option.

D n g la s , M reer o n a ld Ju D d n -y a 2 ear ca Nancy ent his 4 sp , ity D M nglas, at Univers Donald Ju physician e in also ic re d a e rnal M Nancy, his wife, as an Inte d n a ing s k la a g ted to m . Dr. Jun Hospitals and devo H U f t, o n e rs pporte retirem strong su ven after s in others. E r fo er Service ce n te n a differe UH Volu t a se rs a e C te t s volun ies and a Dr. Jungla ral activit o st . e a p in ic d dor an ol of Med ambassa rsity Scho e iv n U e Reserv al Western veral clinic pports se su ty si ro e an IRA oing gen through Their ong cent gift re A . lases to H U the Jung areas at r allowed ve llo ro tisfy their well as sa charitable s a rt o ee. p on, tax fr their sup distributi continue m u im in quired m ncer annual re expert ca H for the U to s. l la fu g grate Dr. Jun “We are re,” said ca l a ic rg iac su and card

ACT NOW: Under current law, this opportunity for a tax-free transfer from an IRA to a qualified charity will expire December 31, 2011. Take advantage of this limited tax-friendly provision to support University Hospitals.

MAX IMI Z E THE I M PA C T OF YOU R G I V I N G THROUG H AN IRA DES I G N AT IO N There’s good reason to consider naming University Hospitals as a beneficiary of your traditional IRA or 401(k) plan. Example: Walter is planning his will. His assets include a 401(k) account and a stock portfolio. After consulting his attorney, Walter decides to leave the stock portfolio to his daughter, Kim, and the 401(k) account to University Hospitals. Here is why:

University Hospitals receives the 401(k). If Kim had received the 401(k) she would pay income tax on the distribution. But since University Hospitals is a qualified charitable organization and is not required to pay income tax on distributions from a 401(k), all the assets can be used immediately to support University Hospitals.

Kim gets the stock portfolio with a “stepped-up” basis. When Kim sells the stock, capital gains tax will be based on the appreciation since the time she inherited the stocks.

2 1 6 - 9 8 3 - 2 2 0 0

Fa l l

2 0 1 1


Now is t h e b e st ti m e f or C h aritable Le ad Trusts The historic combination of the lowest IRS discount rate with the highest gift tax exemption ever seen, means that charitable lead trusts (CLT) are now among the best ways to support University Hospitals today and pass significant assets to heirs.

Donor transfers assets

There are two key tax incentives for creating a charitable lead trust. One, the prevailing low interest rates result in lower federal gift and estate taxes. When rates are low, it is easier to reduce the effect of the transfer taxes – in some cases to no taxes at all. Two, any appreciation of the assets placed in the CLT above the low interest rate will pass to the beneficiaries transfer tax-free!

Tax benefits


Annual distributions

Remainder to donor’s family with tax savings

There are variations and nuances associated with the charitable lead trust, and it’s important to meet with your professional advisors to discuss whether this sophisticated gift option may be right for you.

“The current low interest rates make charitable lead trusts a very attractive tool for charitably-inclined clients, like Buddy and Virginia Spitz. It was a very good fit in this situation because it fulfilled two of their estate planning goals: to make an impact by giving currently to University Hospitals and ultimately benefit their family at the end of the trust term.” –Karen L. Greco, Esq., Kohrman Jackson & Krantz UH Diamond Advisory Group Member

Many ways t o ma k e a di f f e re n c e If you have questions about ways to include charitable giving in your overall planning strategy, please contact a gift planning professional at 216-983-2200 or return the attached reply card.


UH CEO Among Most Influential


Thomas F. Zenty III, University Hospitals Chief Executive Officer, was ranked 27th on Modern Healthcare’s list of the 100 Most Influential People in Healthcare. The annual list recognizes the men and women considered among the most significant throughout the industry, as chosen by the readers of Modern Healthcare.

UH Researchers Study New Prostate Cancer Test

ED Debuts at UH Twinsburg Health Center

Researchers at UH Seidman Cancer Center are studying a promising new screening test for prostate cancer. Developed by Cleveland-based biotech company AnalizaDx, Inc., the test may be a major advance in prostate cancer diagnosis, said Mark D. Stovsky, MD, Medical Director, Urology Services, UH Richmond Medical Center, who is principal investigator and lead author of a study that appeared in the September issue of Urology.

Twinsburg recently got its first taste of emergency care, with the opening of the state-of-the art, $2.4 million Emergency Department (ED) at UH Twinsburg Health Center.

Prostate cancer is the most common cancer in men. Early detection is critical; treatment is typically less effective as cancer progresses. The study is dedicated to the late Martin Resnick, MD, the original principal investigator and former Chairman of the Department of Urology, UH Case Medical Center.


D i a m o n d

Open 24 hours a day year-round, the new ED will respond to all medical emergencies, including strokes and heart attacks. Patients who require hospitalization can be transported to UH Ahuja Medical Center in Beachwood or UH Case Medical Center in Cleveland. Easily accessible from Interstate 480, the ED houses full laboratory and radiology services, including digital radiography, CT and ultra-sound imaging. Physicians, nurses and staff will work with Emergency Medical Service (EMS) squads in surrounding communities such as Solon, Aurora and Hudson.

A generosity of spirit, shining for generations

UH Leadership News Edward M. Barksdale Jr., MD, was appointed Surgeon-in-Chief for UH Rainbow Babies & Children’s Hospital. Dr. Barksdale holds the Robert J. Izant Jr., MD, Chair in Pediatric Surgery. He also serves as Vice-Chair, Department of Surgery at UH Case Medical Center. Warren R. Selman, MD, was named Neurosurgeon-in-Chief for UH. Dr. Selman, Harvey Huntington Brown Jr. Professor of Neurosurgery, is also Chair of the Department of Neurological Surgery, UH Case Medical Center and Case Western Reserve University School of Medicine. He also serves as Director of the UH Neurological Institute. Pablo Riera Ros, MD, MPH, PhD, has been named Radiologist-in-Chief for UH. Dr. Ros, Theodore J. Castele University Professor, is also Chair of the Department of Radiology at UH Case Medical Center and Case Western Reserve University School of Medicine. U H g i v i n g . o r g


U H D ia m o nd A dvis o ry G r o up A nnual M e e ting

Lisa Ro b Mamo ertsn Baker e, Esq., & Hostetl er LLP

It’s a Whole New Ball Game! It’s a Whole New Ball Game was the theme of the annual meeting of University Hospitals Diamond Advisory Group held on June 30 at Progressive Field. Paul J. Dolan, Chairman and Chief Executive Officer of the Cleveland Indians, and Honorary Chair of UH Diamond Advisory Group, welcomed the crowd to the ballpark. The lunch meeting held on the field was attended by more than 120 professionals and UH leaders for a captivating presentation by Raymond P. Onders, MD, FACS, Director of Minimally Invasive Surgery at UH Case Medical Center; Margaret G. & Walter K. Remen Chair in Surgical Innovation. Dr. Onders spoke on the latest medical advancements and leadingedge techniques that continue to improve health and save lives. Lawrence H. Hatch, Esq., The Private Trust Company, and Chair of UH Diamond Advisory Group, introduced Thomas F. Zenty III, Chief Executive Officer of University Hospitals, who thanked members for their continued support as ambassadors to UH. Mr. Zenty discussed how Discover the Difference: The Campaign for University Hospitals builds on the momentous expansion of UH hospitals and facilities. “This $1 billion campaign is the most ambitious in our history, and I am pleased to report we are more than three-quarters toward reaching our goal,” said Mr. Zenty.

Raymo nd P. O nders, MD, FA CS, Dir ector, Minima lly Invasi ve Surgery , UHCM C

humbled by this award. It has been an honor to work with several notable UH benefactors,” said Mr. Pinney, who helped facilitate gifts from Jane and Lee Seidman, Bob, Eleanore and Kathy Risman, and Buddy and Virgina Spitz. The UH Diamond Advisory Group is a volunteer group of legal, financial, real estate and insurance professionals helping clients and UH benefactors achieve their financial and philanthropic goals. For more information, call Patricia Fries, Esq. at 216-844-0430.

Alan M .G Libman oldstine, CPA , G Kopperm oldstine an & W olf Inc.

“I am humbled by this award. It has been an honor to work with several notable UH benefactors.” –Jon J. Pinney, Esq., Kohrman Jackson & Krantz

(l to r): Jon J. Pinney, Esq. and UH Benefactor Bob Risman (l to r): Paul J. Dolan; Amanda Pinney; Jon J. Pinney, Esq.; UH CEO Thomas F. Zenty III; Lawrence H. Hatch, Esq.

Jon J. Pinney, Esq., Kohrman Jackson & Krantz was honored with the 2011 UH Distinguished Advisor Award, presented by Mr. Zenty. “I am

2 1 6 - 9 8 3 - 2 2 0 0

Fa l l

2 0 1 1


Di a mond Newslet ter

C o ntac t U s


University Hospitals of Cleveland Institutional Relations & Development 11100 Euclid Avenue Cleveland, Ohio 44106-5000 Patricia L. Fries, Esq., MBA Director, Gift Planning 216-844-0430


Claudia Lozano Jerry Pockar, Julie Evans Parente-Smith Design Inc. Photography: Keith Berr, Dan Milner Managing Editor: Writers: Design:

Claudia A. Lozano Manager, Gift Planning 216-844-0433 Alexandra G. Gray, Esq. Gift Planning Officer 216-844-0432

© 2011. All rights reserved. University Hospitals

UH Geauga Medical Center

Di a mond Heir looms

G ift s fr o m th e P a s t s hin e int o th e f u t u r e

William T. and Margaret R. Clark:

Devoted to family, community and philanthropy William T. and Margaret R. Clark lived, loved and gave themselves to the people and places of Geauga County.

solicitation, William would insist the request be made with his wife, Margaret, present.

William was a self-made man who, over decades, climbed a career ladder with integrity, dedication, common sense and a common touch. At the top, he was President of First National Bank of Burton and the very definition of a pillar of his community.

Like her husband, Margaret devoted a considerable amount of time to the medical center. As a bank president’s wife, she humbly volunteered for decades in the hospital coffee shop and cafeteria. “She was extraordinarily hard working and unbelievably kind,” remembered her daughter.

When he died in 2010 at the age of 89, William’s obituary listed 23 community organizations on which he served. His children, Mary Ann Aardema and Tom Clark, recall that shortly before his death, he went straight from the hospital upon discharge to a community meeting. “He looked at me and said, ‘I think I can still attend that meeting,’” Tom recounted on a recent visit to UH Geauga Medical Center, the hospital William Clark helped create more than half a century ago. Back in the mid1950s, William was one of the founding fathers of what is now UH Geauga Medical Center, a large, state-of-theart community hospital in the UH family. For two decades he served on UH Geauga Medical Center’s Board. He was also a member of University Hospitals Board of Trustees. Tom and Mary Ann characterize their parents as profound partners. For example, whenever a charity made a 8

D i a m o n d

The Clarks were from a place and generation where relationships were extremely important. “My father offered guidance and support to many friends and colleagues,” Tom said. “He was a very curious man. He learned what he needed to know so he could create jobs and stimulate economic energy in the community.” After Margaret’s death in early 2010, William’s health rapidly deteriorated. Finalizing the couple’s estate gift to the hospital was his priority. “He felt urgency about that,” said Mary Ann. The children believe their parents’ motivation in life was “to make a difference in the best ways you can.” Throughout their lives, William and Margaret did just that. Now their estate gift to UH Geauga Medical Center will serve as an enduring legacy to the community. Thanks to their foresight and generosity, “The William T. and Margaret R. Clark Family Fund for

A generosity of spirit, shining for generations

Margaret R. and William T. Clark

Capital Improvement” will help bring UH Seidman Cancer Center to the campus of UH Geauga Medical Center. “William and Margaret Clark’s generous bequest to this hospital is more than a thoughtful kindness to the people of the communities they loved so well,” said M. Steven Jones, President of UH Geauga Medical Center. “It is a gift that will make a lasting, positive impact and bring the highest quality care possible to our cancer patients.”

U H g i v i n g . o r g

Diamond Newsletter  

Diamond, a newsletter of Institutional Relations & Development at University Hospitals, features inspirational stories about our Diamond Leg...