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The Power of Planning Many people think making a major gift to an institution requires great wealth. In truth, what it really requires is planning . Planned gifts—major gifts made in the form of a bequest or trust—allow donors to maintain financial stability during their lifetimes while ultimately helping Maxwell achieve its long-term goals, too.Susan Penny ’70 B.A. (Econ.), chair of
the Maxwell Advisory Board and an SU trustee, has regularly supported Maxwell.
But Penny and her
“We are very impressed with the interdisciplinary learning and teaching that goes on at the Maxwell School and believe this is vitally important to addressing the issues facing our country and our world,” says Penny, who is the managing partner of a private investment firm. Penny and Stevanovic have made provisions in their wills for a major bequest. “We are leaving financial gifts to some family members, but the bulk of our estate will support the Maxwell School and Syracuse University,” she says. “It’s an affirmation of our support, a vote of confidence in the important work being done.” This gift puts Penny at no financial risk during her lifetime, but gives her the satisfaction of knowing she will support Maxwell in a significant way years into the future. Deferred outlay is the prime attraction of bequests. Many Maxwell alumni spend their lives working in education and the public sector and accrue their greatest wealth in retirement plans. By designating the Maxwell School as the beneficiary of such an account, a donor enjoys retirement income throughout his or her lifetime and reduces or eliminates eventual taxes on this part of his or her estate. Other donors find ways to make planned giving serve them while still living, using trusts and other vehicles to create a protected income stream or to save on taxes. John D. Hogan Jr., another Advisory Board member, recently finalized arrangements that benefit him and his wife and the Maxwell School.“I have three degrees from Syracuse, two
of them from the Maxwell School,” says Hogan, who earned his B.A. (’49) and
Ph.D. (’52) in social
Over the years, Hogan developed a stock portfolio that had appreciated significantly. Hogan, who is dean emeritus of Georgia State University’s business school, and his wife Anna, a financial educator and consultant, understood well the pitfalls of a large sale of stock—they would lose a substantial portion of the asset to capital gains taxes. The Hogans decided to use their stock to make a more substantial gift to Maxwell, improve their tax situation, and provide retirement income. They established a charitable remainder unitrust with SU, into which they transferred their stock. The Hogans will receive interest income from the trust for the rest of their lives. And because their gift is invested as part of the larger Syracuse Uni versity endowment, it receives a higher rate of return than it likely would on its own. “Establishing this trust provides substantial tax advantage and enables Syracuse, given the appreciation of the amount over some years, to realize a larger fund from my contribution,” Hogan says. “At a certain point in life, using this form of contribution is a no-brainer; the only one who loses is the IRS!” A well thought-out plan, indeed. |
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husband Dr. Radomir Stevanovic wanted to show their
support in a more lasting and substantial way.
science
on full scholarship assistance. “I went through
these degree programs without ever paying any tuition. I really felt I owed the
school.”