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Gift Planning

College Annuity Plans--Barbara and Charles Beever '74


The Beevers with their granddaughters (from left) Grace, Becca and Katie.

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."

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A charitable bequest is one or two sentences in your will or living trust that leave to Haverford College a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Haverford College, a nonprofit corporation currently located at 370 Lancaster Avenue, Haverford, PA 19041, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Haverford or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate, or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property, or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Haverford as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Haverford as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Haverford where you agree to make a gift to Haverford and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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