College Annuity Plans--Barbara and Charles Beever '74
Charles Beever '74 and his wife Barbara were concerned that they would not be able to set aside as much as they wanted for their three granddaughters' college educations and support Haverford College—one of their top charitable priorities—at the same time. They were delighted to learn that a College Annuity Plan would meet both goals and also provide them with a needed tax deduction.
Though their own college experiences were different, Charley and Barbara firmly agree that education serves multiple purposes and is very important no matter what form it takes. The Beevers find strong common ground in the gratitude that each feels at having been able to go to college at all. Charley's grandparents funded his tuition at Haverford, where he majored in Economics, and Barbara received substantial scholarship assistance from the college she attended to become a physical therapist. Because both of them have benefitted from the generosity of others who made higher education possible for them, "it makes it easy for us to be generous so that others have the same opportunity," explains Charley. Much of that generosity has benefitted Haverford College over the years, including the establishment in 1997 of the Charles and Barbara Beever Scholarship Fund, which helps Haverford to remain a need-blind institution, one of the College's values that the couple most appreciates.
Recently, though, the couple faced a dilemma of sorts when they received additional income through the partial sale of the company for which Charley works. While they would have liked to use this income to increase the value of their Scholarship Fund, they also felt compelled to increase savings for their three granddaughters' college educations. The Beevers agreed that the girls, who range in age from nine to 11, would come first.
Charley "broke the news" to Ann West Figueredo '84, Director of Leadership Gifts, that he and Barbara would be focusing on college savings for their granddaughters—over other philanthropic pursuits. To his surprise, Ann informed him that there were "options" to benefit the grandkids and Haverford at the same time. The solution was to create a College Annuity Plan for each of the granddaughters. Creating three annuities meant giving the money earmarked for their college funds to Haverford, where it would be invested and held for a period of years to benefit the girls. When each one reaches college age, the annuity will begin to make quarterly payments to her for the four-year period that coincides with her college years. At the end of the four-year payment period, the remaining funds will become a gift to Haverford for the Beever Scholarship Fund.
Charley and Barbara recognized that this was an arrangement in which everybody wins. "I was able to give money to Haverford in the long run that would accrue to the benefit of our grandkids in the short run," Charley explains. He points out that he and Barbara benefit as well, not just because they are achieving two deeply important goals at the same time, but also because they received an immediate tax deduction based on the portion of the annuity that is a deferred contribution to Haverford. The deduction offset the assets received from the business transaction, reducing their overall taxable income.
Although the annuities are invested at Haverford, there is no requirement that the Beevers' granddaughters attend Haverford. Of course, Charley does plan to encourage them to consider the College. "I was tremendously impressed with the quality and thoughtfulness of the education I received there. Haverford is in many respects a unique institution."
The Beevers are pleased that they were able to accomplish multiple goals at Haverford through College Annuity Plans. Indeed, Charley's advice to those considering such a gift: "Give now rather than later. If your desire and priorities are such that you want to accomplish dual purposes—tax advantaged dual purposes—with the money you're giving, this is a great vehicle and means to those two ends. For many people, this is a way that works."