Insights Winter 2009

Example: In your will, you statethat your sister will receive yourhouse when you die. But you haveincluded a contingent provision inyour bequest stating that, if youpredecease your sister, the IowaState University Foundation willreceive the house. This arrangement

Few gifts are as simple to arrange asthe charitable bequest. A bequest isa gift made through your will.Bequests are risk free because youretain full use of the gift propertythroughout your lifetime and thereis no out-of-pocket cost. And youcan change a bequest at any time tomeet changing conditions orchanging philanthropic goals.

The key to a meaningful charita-ble bequest is an up-to-date will. Ifyou do not have a will, we encour-age you to see your attorney to putyour will in place. It is the only wayto make certain your exact inten-tions are carried out upon yourdeath, and it is the best way to pro-tect loved ones and provide for thecharities you care about. If you havea will but want to revise it to includea bequest to the Iowa StateUniversity Foundation, the processis an easy one. Your attorney canlikely update your will with a simplecodicil. Making revisions or addi-tions to your will does not necessari-ly require that you write a new will.

Choices when planning acharitable bequest The choices are nearly endless whendeciding what to give through acharitable bequest. A bequest can bespecific property, such as a coincollection, a work of art, or realestate. A charitable bequest can be aspecific dollar amount or an amountexpressed as a percentage of thetotal value of your estate. Or, abequest can even be contingentupon an event or the existence ofcertain circumstances.

IOWASTATEUNIVERSITYFOUNDATION

2505 UNIVERSITYBOULEVARD

P.O.BOX2230AMES, IA 50010-2230

OFFICE OF GIFT PLANNING

2505 UNIVERSITY BOULEVARD

P. O. BOX 2230AMES, IA 50010-2230

Making a DifferenceOur work is accomplished only through thegenerosity of our friends and supporters. All gifts —small, large and in-between — have a significantimpact on our mission. All are important. All arevalued. Thank you for considering the ways youcan make a difference at Iowa State University.

Now may be the right time to review your estateplan, and our brochures can help:

Flexible Gifts — Easy to Make, Easy to Live With

Personal Financial Affairs — Your Book of Records

Taxpayer’s Home Companion — For 2008 ReturnsDue in April 2009

As always, it would be our pleasure to answerany questions or help you with gift planning ideas. E-mail us at [email protected] please call 800.621.8515 to talk with us today.

INSIGHTSIOWA STATE UNIVERSITY FOUNDATION

A CHARITABLE PLANNING GUIDE FOR ISU ALUMNI AND FRIENDS

WINTER 2009

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

INSIDE THIS ISSUE ...

IN THIS ISSUE ...2 More planning options

for 2009

5 Charitable bequests: a risk-free way to make an impact

5 Beneficiary designations:simple and effective

The Lyle J. and Marcia L. HigginsEngineering Scholarship Fund

Charitable Bequests – A Risk-free Way to Make an Impact

More Planning Options for 2009

Deferred gift has lasting impact on engineering students

Beneficiary Designations and Options Name us as a life insurance beneficiary You may have a life insurance policy that is no longer needed. Perhaps itwas purchased to pay off a mortgage or set up a college fund in the eventof your death, and now the mortgage is paid and the kids are grown. Youcan name the Iowa State University Foundation as the beneficiary orcontingent beneficiary of that policy. You’ll be assured that the policyproceeds 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.

Smart reasons to name us as an IRA or 401(k) beneficiaryYou may have more than one retirement plan, perhaps includinga traditional IRA or 401(k) plan. If your financial goals include providingfor loved ones and Iowa State University, there’s a good reason to considernaming the Iowa State University Foundation as beneficiary of one of thesetax-deferred accounts while leaving other assets to family members. IRA or401(k) assets left to family members or heirs are subject to income tax onthe distribution. But since the Iowa State University Foundation is aqualified charitable organ-ization, assets left to us are received in full, withno income tax due.

Cover all bases with your savings and checking accountsOne more option for making a flexible gift is to set up a payable on deathdesignation for your savings and checking accounts. Your bank canprovide the proper form. With a payable on death designation, funds inthe account are the time of your death are payable directly to the personor charitable organization that you name. Funds avoid the probateprocess, 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 asecond option.

Visit us online at www.isugift.org

assures that your house will not goto unintended beneficiaries.

There’s much more to learn aboutcharitable bequests and your options.For more information, return theenclosed reply card and ask for ourfree brochure, Flexible Gifts: Easyto Make, Easy to Live With.

Bequests: No Risks, No Regrets

Gift Planning Staff: (L-R) Gregg Hinders, Administrative Coordinator

Lynda M. Jacobson, Assistant Vice President of DevelopmentPaul Caspersen, CFP®, CMFC, Executive Director of Development

[email protected]

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

Minnesota, but I fell in love withIowa State and Ames when I visited,”said the junior majoring in industrialengineering. “If it weren’t for scholar-ships like the Higgins EngineeringScholarship, I would not be able toattend Iowa State.

“I know that the overall experienceI’m having here is invaluable and Ican’t stress enough how grateful I amfor the donors that make it possible.”

Joel Johnson, director of studentprograms and services in the Collegeof Engineering, agrees.

“It’s exciting to have the opportu-nity to make such a difference in somany students’ lives,” he said. Some of the current recipients of the Lyle J. and Marcia L. Higgins Engineering Scholarship.

Iowa State University Foundation INSIGHTS

Other Options for 2009 – Support Iowa State University, Receive Personal BenefitsDuring challenging economic times, caution is the byword for financial decisions.Nonetheless, there are smart yet cautious moves you can make — steps beyond flexiblegifts — that will benefit you and us.

The charitable gift annuity is one option. In exchange for a gift of cash or property, wepromise to pay you a fixed income for the rest of your life — an amount that will not change, and you never needrenegotiate or renew the agreement. What’s more, you’ll be eligible for an income tax charitable deduction based onthe 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 ata future date. Compared to the “traditional” gift annuity, there are two distinct additional advantages with the deferredcharitable 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 giftannuity might help meet your philanthropic and personal financial goals.

At the heart of philanthropy is the desire to “give back”and contribute in a way that makes a difference in thelives of others. There are many ways to give back —sometimes through gifts of time and service, and othertimes through gifts of cash or property.

At the Iowa State University Foundation, we arekeenly aware of the economic challenges that lie aheadfor 2009. We are optimistic about our ability to meetthese challenges with support from donors and friendswho recognize the significance of this undertaking. Inthis economic climate, we are committed to redoublingour efforts and working diligently to help those weserve. And with your help, we can forge an importantpartnership that will sustain our work during theseunpredictable times.

In this issue, we focus on helpful information aboutflexible gifts — ways you can show your support forIowa State without locking into commitments thateliminate future financial options. You will learn howone couple, Lyle and Marcia Higgins, created a scholar-ship that not only met their needs, but also had animpact on more than 90 undergraduate engineeringstudents last year alone.

Please take a few moments toread further; considering theseideas should be well worth yourtime investment. We also inviteyou to use the enclosed card tosend for our complimentarybrochure, Flexible Gifts: Easy to

Make, Easy to Live With. It providesadditional tips on gift plans that can be adjusted inresponse to changing needs and goals.

Flexible gifts are a safe and purposeful way todemonstrate your philanthropic commitment. Please letus know if we can help you and your financial advisorsfurther explore these options.

Lynda M. JacobsonAssistant Vice President of Development Office of Gift [email protected] y 800.621.8515

Lyle and Marcia Higgins estab-lished the scholarship through abequest. Upon Marcia’s death in2003, a credit shelter trust wasestablished to benefit College ofEngineering students. When Lyle,a 1957 industrial engineeringgraduate of Iowa State, passed awayin 2006, the proceeds from hisestate/bequest also went into thegeneral scholarship, creating a $2.6million endowment.

A charitable bequest like theHiggins’ scholarship fund is easy tocreate. Such a method is risk-freebecause donors retain full use of thegift property throughout their life-time, with no out-of-pocket cost.

It also allows individuals likeLyle and Marcia Higgins to makesure that their bequest goes to aprogram they would like to support.The couple decided they wanted tosupport education, specificallyengineering scholarships, with theproceeds of their estates.

“I just received the annualendowment activity report (for thisscholarship) the other day and sawthat more than 90 students wereawarded scholarships this year!”writes Scott Higgins, the couple’snephew. “I know that this is exactlythe impact Lyle and Marcia werehoping to have, and it’s a great feel-ing for me to see it happen.”

It’s also a great feeling for the 90engineering students who receivedthe scholarship, including AlexClemons.

“I hadn’t considered attending aschool outside of my home state of

Scholarship support is a traditionalway many Iowa State Universitybenefactors have supported theuniversity over the years. In fact,more than 550 new scholarshipshave been created since CampaignIowa State: With Pride and Purposewas launched.

But few scholarships have had thetype of impact on campus that thenew Lyle J. and Marcia L. HigginsEngineering Scholarship Fund hashad on engineering students.

During the 2008-09 academicyear alone, more than 90 aerospace,agricultural, chemical, civil, com-puter, construction, electrical,industrial, materials, and mechani-cal engineering students receivedthe Higgins Engineering Scholarship.

The scholarships ranged from$1,000 to $2,500 per student andwere awarded based upon financial

need and academic merit. Recipientsmay renew the scholarships uponreapplication and continued compli-ance with the stated criteria.

“The total amount the collegeawarded through the HigginsEngineering Scholarships representsjust over 6 percent of the totalscholarship awards that the Collegeof Engineering distributes to itsundergraduate students,” said DianeRover, associate dean for academicand student affairs. “A gift of thissize can make a significant impacton our scholarship program.”

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

“I know that this is exactlythe impact Lyle and Marciawere hoping to have, andit’s a great feeling for me

to see it happen.”– Scott Higgins

Find a planning option thatbenefits you and Iowa State We hope you have found useful ideas in thisissue of Insights. To further aid your planning,send for a complimentary copy of the bookletslisted below, with no obligation. Simply fill outthis tear-off card, fold and tape it on the openend, and drop it in the mail to us. We’ll pick upthe postage.

Please send a complimentary copy of:

Flexible Gifts: Easy to Make, Easy to LiveWith, a brochure that provides additionaltips on gift plans that can be adjusted inresponse to changing needs and goals.

Personal Financial Affairs: Your Book ofRecords, a helpful planning guide fordocumenting important information.

Taxpayer’s Home Companion for 2008Returns Due in April 2009, an overview ofthe 2008 tax rules including those affectingcharitable gifts.

I’m interested in discussing the variousways to support Iowa State. Please contact me____ by phone____ by e-mail to talk about these possibilities.

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

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Reserve the Right to Keep Your Options Open

Flexible Philanthropy

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

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

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

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

Gift has Lasting Impact on Engineering Students

“If it weren’t for scholorshipslike the Higgins Scholorship,I would not be able to attend

Iowa State ”– Alex Clemons

ADDRESS

STATE, ZIP

TELEPHONE

E-MAIL

INFG0209

ADDRESS

STATE, ZIP

TELEPHONE

E-MAIL

INFG0209

P.O.BOX2230AMES, IA 50010-2230

P. O. BOX 2230AMES, IA 50010-2230

WINTER 2009

for 2009

[email protected]

P.O.BOX2230AMES, IA 50010-2230

P. O. BOX 2230AMES, IA 50010-2230

WINTER 2009

for 2009

[email protected]

ADDRESS

STATE, ZIP

TELEPHONE

E-MAIL

INFG0209

P.O.BOX2230AMES, IA 50010-2230

P. O. BOX 2230AMES, IA 50010-2230

WINTER 2009

for 2009

[email protected]

Insights Winter 2009

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