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fall 2008

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News and Information from Harvard University Planned GivingALSO IN tHIS ISSUe

Investment Professional Prepares for Retirement—Harvard Charitable Remainder Trusts page 3

Harvard University Gift Annuity Rates page 4

When to Expect Your Tax Forms page 4

How to Make a Bequest to Harvard page 5

Family, Finance, and philanthropy Dinners page 6

Q&A with Jane MendilloPresident and CEO, Harvard Management Company

Jane Mendillo assumed leadership of Harvard Management Company (HMC) on July 1, 2008, with oversight of the University’s $36.9 billion endowment. Although a previous veteran of HMC, she spent the past six years at Wellesley College as chief investment officer. From 1987 to 2002, she served in numerous leadership roles at HMC, including as vice president of trusts. She was recently named by Money Magazine as one of the world’s top five investment managers.

Why did you choose to return to Harvard?

It was an easy decision to return. I believe that the opportunity to manage the Harvard endowment is the most exciting and potentially gratifying job in the endowment field. The strength and success of the Harvard portfolio and the talent and skill of the team at HMC combine to create a platform for top-notch innovation and investment strategy—more so here than just about anywhere else.

Jane Mendillo

Giving and Receiving linda Greenhouse and Robert Mittendorf achieve Philanthropic and Personal Objectives with Charitable Gift annuities

Robert Mittendorf

linda Greenhouse

“I never thought I was in the asset category to even think of doing a charitable gift annuity,” said Linda Greenhouse Rad AB ’68, who wanted to find a way to honor her 40th reunion. “But it ended up being a sensible thing to do in terms of estate planning and tax planning.” The Pulitzer Prize–winning journalist secured retirement income and saved on taxes while supporting the Radcliffe Institute of Advanced Study.

Robert Mittendorf MPH ’87, DPH ’91, an obstetrician and epide-miologist, was also encouraged by the accessibility of the gift annuity

option. “I could make payments over time, and it was something I could afford,” he said. His gift provides income to him now that will transfer to a family member later, and will eventually support doctoral students at the Harvard School of Public Health.

To establish her annuity, Greenhouse transferred an underperforming mutual fund that was left over from an account she had set up for another purpose. The funds will help to advance scholarship about women at Radcliffe’s Schlesinger Library and support the larger organization she

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How do you view the endowment results for fiscal year 2008?

In fiscal year 2008, the Harvard endowment returned 8.6 percent— a very satisfactory result given the year’s turbulent markets. This success is a testament to Harvard’s diversified portfolio and to HMC’s hybrid approach of using both internal and external investment managers. The average return for the endowment is 17.6 percent for the past 5 years, and 13.8 percent for the past 10 years. This pattern of strong results helps drive the University’s ability to achieve its lofty educational goals and meet the inevitable financial and other challenges the University will face moving forward.

How is Harvard positioned to weather the turbulent investment markets?

Historically, Harvard has done well in periods of market f luctuations. The endowment includes investments that are targeted at U.S. and non-U.S.

markets, private as well as public markets, and real assets and financial securities. In just about any market scenario, there are parts of our portfo-lio that will hold up relatively well. In fact, during the market correction over the last 18 months, the endow-ment has been able to maintain posi-tive momentum in the midst of falling prices. While short-term markets can certainly be choppy, Harvard has an almost unique ability to be an opportunistic investor and to take a long-term view. As a result, troubled markets can present rewarding situa-tions for us.

What would you suggest to alumni and friends who are considering a planned gift?

With a planned gift, a donor has the ability to help Harvard achieve its substantial educational and financial goals, while also receiving income during her/his lifetime or the lifetime of a family member. Since charitable remainder trusts can now be invested with the endowment, an unusual opportunity exists to participate in the returns of the University’s largest

asset. And the substantial resources of the planned giving group at Harvard can help guide alumni toward their philanthropic and personal goals.

What has motivated you to spend the bulk of your career in support of higher education?

The goals of Harvard University resonate with me personally. The promise of higher education— particularly a Harvard education —is immeasurable. The quality of the students at Harvard and the staff of HMC provide further mo-tivation. I cannot imagine a more rewarding or interesting professional path. Certainly there are many alternatives in the money manage-ment field, but managing money for the purpose of higher education—to increase the potential for Harvard to boost financial aid, foster new discoveries, improve facilities, and inspire young minds—has to be the most rewarding. ❖

Q&A with Jane Mendillo (Continued from page 1 )

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Everything came together at the right time for Laura Calhoun ’68. “Last spring, I was doing some planning for retire-ment income. About the same time, I was looking to reduce my exposure to some appreciated stocks and mini-mize my current taxable income,” she said. “I also attended a 40th reunion event with classmates and began feel-ing particularly proud of Harvard’s new leadership.”

By choosing the endowment option for charitable remainder unitrusts, Calhoun established a gift that can grow alongside the Harvard endow-ment, provide income to her in retirement, and, ultimately, support Harvard.

Investment Professional Prepares for Retirement—Harvard Endowment Charitable Remainder Trust Can Pay You Income for Life

Laura Calhoun

“I wanted to give back to the Univer-sity while taking advantage of what I hope will be a growing stream of income,” she said. “As an individual investor, I don’t have access to the same asset classes as the endowment. Because I’m sixty-two, I was looking to diversify and broaden my sources of retirement income with inf lation protection. Throughout my career as an adviser to high–net worth clients, I’ve always stressed the importance of diversification. Now I’m following my own advice. The trust made sense, and I realized that now was the time to do it.”

Calhoun, a managing director at BNY Mellon Wealth Management, established her gift to offer unre-stricted funds to the Radcliffe Institute for Advanced Study.

The chart above shows how a Harvard Charitable Remainder Trust, invested 95% in the Harvard endowment and 5% in cash 10 years ago, would have performed on a calendar year basis as compared with the S&P 500 and the Trust Universe Comparison Service (TUCS). The TUCS performance incorporates available data on 165 large institutional investors. Past performance is not indicative of future results.

“I have warm feelings for Radcliffe and support its evolving mission,” said the Radcliffe alumna whose mother, Claire, is a member of the Radcliffe Class of 1939. “I think Harvard is making great progress—for women and in many other ways —and I’m happy that I was able to make a gift in a manner that also met some of my own financial goals.” ❖

T RUS T P eRfo Rm a n Ce Co m Pa RiSo n

20.4%

5.5%

8.6%

17.7%

8.6%

10.2%

12.8% 12.9%

19.2%

14.5%

5.9%

7.9%

1 YEAR 3 YEAR 5 YEAR 10 YEAR

HARVARD HARVARD

HARVARD

HARVARD

S&P 500

S&P 500

S&P 500

S&P 500

TUCS

TUCS

TUCS

TUCS

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University Planned Giving Notes

Harvard Management Company (HMC)

supplies beneficiaries with information neces-

sary for income tax filing. To help you sched-

ule your meeting with your accountant or

financial adviser, please bear in mind the fol-

lowing timeline.

Charitable Gift Annuities

By January 31, gift annuity beneficiaries will

be mailed Form 1099-R, detailing the income

to be reported.

Pooled Income Funds and Charitable

Remainder Trusts

By the end of March, HMC will mail Schedule

K-1s, detailing the income to be reported on

your 1040. Massachusetts residents will also

receive Form 2G, detailing income earned and

state taxes withheld.

HMC is happy to send copies of tax statements

to your accountant, financial adviser, or other

individual. To request this service, please con-

tact HMC at (877) 539-6593 or donor_rela-

tions@hmc.harvard.edu.

When to Expect Your Tax Forms

SinglE liFE

Age Annuity Rate

50 5.3%

60 5.8

70 6.2

80 8.0

TWo-liFE

Age Annuity Rate

50 4.4%

60 5.3

70 5.8

80 7.5

Harvard University gift Annuity Rates

DEFERRED SinglE liFE

Age Age Payments Begin Annuity Rate

50 65 12.1%

60 65 7.4

DEFERRED TWo-liFE

Age Age Payments Begin Annuity Rate

50 65 11.3%

60 65 6.9

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“ I give ( dollars or percent or all of the residue of my estate) to the President and Fellows of Harvard College, a Massachusetts educational, charitable cor-poration, for the benefit of (School/Affiliate).”

If you would like assistance in making a

more specific bequest, please contact

University Planned Giving professionals at

(800) 446-1277 or pgo@harvard.edu.

We will be happy to help you draft language

so that your gift is used as you intend. If you

have already made a bequest provision for

Harvard, we thank you for your thoughtful and

generous support! Please let us know about it

to ensure a smooth transfer process for the gift

from your estate to Harvard in the future.

How to Make a Bequest to Harvard UniversityLeaving a bequest to the University is easy—simply include the following language in your estate plan:

New Staff aNNoUNceMeNt

We are delighted to announce the newest member of our staff.

Stephanie cummings Gift Processing Coordinator

Stephanie joined University Planned Giving in July 2008. Before joining this group, she worked in the staffing industry. A graduate of Wheaton College with a major in psychobiolo-gy, Stephanie enjoys running, biking, tennis, and spending time at her family’s lake house.

UPG ProMotioN

We are also happy to announce a recent promotion within the department.

Lisa DeBenedictis aB ’04 has been promoted to Assistant Director.

Lisa DeBenedictis

Stephanie Cummings

end-of-Year Gift reminder

The end of the year is just around the corner! This is the time that many of Harvard’s

alumni and friends consider making gifts to the University. If you are one of those

individuals, we thank you for your generous support, and we are delighted to help you

establish a new gift, or add to an existing plan. For assistance, please call our office

at (800) 446-1277 so that we can ensure that your gift is received and credited before

the end of the tax year.

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Upcoming sessions inclUde:

TUesday, december 2, 2008 Washington, D.C.

Wednesday, FebrUary 25, 2009 san FranCisCo, CaliF.

TUesday, april 7, 2009 Denver, Colo.

Wednesday, may 6, 2009 raleigh/Durham, n.C.

Dinner and discussion on

Family, Finance, and PhilanthropyJoin us to learn about family wealth and governance, the management of Harvard’s endowment, and charitable planning techniques that can benefit you and your family and help you meet your philanthropic goals.

If we do not already have a session in your area and you are interested in this opportunity, please let us know.

Please call Jane Verrill at (800) 446-1277 for more information.

1. Mary E. Coyle AM ’59, PhD ’67 and Suzanne Bishopric AB ’75, MBA ’79 2. Dan P. Hungate LLB ’64, Connie Cunningham Hungate, and Robert L. Wiley, Jr. AB ’52, MBA ’57 3. Laura Wallace and Alasdair H. Halliday AB ‘82 4. Andrey Gerber Kislik AB ’49, and Richard W. Kislik AB ’48, MBA ’49 5. John S. Day MBA ’76, Barbara D. Schwendler, and William T. Schwendler, Jr. MBA ’66 6. Alexander U. Chastain-Chapman AB ’04, and Christine Ho Kim AB ’84

guests enjoying Family, Finance, and Philanthropy programs in seattle, atlanta, and new york city.

1

4 5 6

2 3

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Giving and Receiving (Continued from page 1)

views as the tangible outcome of Radcliffe’s success.

“The whole purpose of Radcliffe was to give women access to a Harvard education. Now that women are fully integrated as students, Radcliffe has achieved its original mission. Its suc-cessful transition into a completely different institutional model is the fruit of that victory,” she said.

Greenhouse’s experience as a reporter and editor for The Crimson foreshad-owed her illustrious career, which was capped in 1998 with a Pulitzer Prize for her New York Times coverage of the Supreme Court. Yet, as a stu-dent, such success seemed unlikely. “When I graduated in 1968, neither the Globe nor the Boston Herald would give me an interview, because they didn’t hire women,” she said.

Recently retired from the Times, Greenhouse is now the Knight Distinguished Journalist in Residence and Joseph M. Goldstein Senior Fellow in Law at Yale University, where she received a master’s degree after receiving her bachelor’s from Harvard. She will continue to serve as an adviser to the Schlesinger Library at the Radcliffe Institute.

Mittendorf ’s career is also one that built on early experience to carve out new paths. In the late 1980s, he was one of the only doctoral students in the country to use quantitative methods to solve clinical problems

in obstetrics. Many others have fol-lowed his example since. At Harvard, he made advances in the study of women’s difficulties with preterm labor, and he has continued to carry out significant research on health out-comes in obstetrics.

“Harvard got me started in an excit-ing new area, and I was very grateful for that,” said Mittendorf, who hon-ored three of his Harvard faculty mentors by creating the MacMahon, Monson, and Trichopoulos Scholar-ship Fund in Epidemiology at the School of Public Health.

As a cerebral palsy researcher and professor of obstetrics, gynecology, and pediatrics at Loyola University Medical Center in Chicago, Mittendorf is currently investigating a link between antenatal magnesium exposures of women in preterm labor and subsequent outcomes in their babies. He credits many of his professional successes to the train-ing and encouragement he received at Harvard.

“My mentors believed in me, and I appreciated their support,” he said. “I was happy to be able to acknowl-edge them and make a meaningful gift that was also helpful to me and my family.” ❖

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University Planned GivingHarvard University124 Mount Auburn StreetCambridge, Massachusetts 02138-5795

How to Reach Harvard’s Planned Giving Professionals

University Planned Giving (617) 495-4647 Anne McClintock

Harvard University (800) 446-1277

124 Mount Auburn Street (617) 495-8130 (fax)

Cambridge, MA 02138-5795

email: pgo@harvard.edu

Internet: http://post.harvard.edu/pgo

Business School (617) 495-6027 edward Buckbee

Harvard College, GSAS (617) 495-4352 Peter Kimball

Law School (617) 496-9265 Charles Gordy

Medical School (617) 384-8449 Mary Moran Perry

(800) 922-1782

Senior Philanthropic Adviser (617) 495-5218 Charles Collier

University Planned Giving professionals

can help you develop gift plans for

any part of the University, including the

following Schools and Affiliates:

Harvard CollegeGraduate School of Arts and SciencesBusiness SchoolSchool of Dental MedicineGraduate School of DesignDivinity SchoolGraduate School of educationSchool of engineering and Applied Sciencesextension SchoolKennedy SchoolLaw SchoolMedical SchoolSchool of Public HealthRadcliffe Institute for Advanced StudyArnold ArboretumHarvard Art MuseumMemorial ChurchAmerican Repertory theatreOther Harvard Affiliates

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