WINTER 2011
Supplement Retirement Income
With a Penn State Charitable Gift Annuity
How It Works: A charitable gift annuity (CGA) is a contract with Penn State in which you agree to make an
irrevocable gift of cash or marketable securities—so your gift doesn’t have to come straight out of pocket. In return for establishing a charitable gift annuity, we agree to make fixed annual payments to you for life. Assets that remain after your lifetime help support Penn State programs and students. Example: Ruth, age 70, establishes a $10,000 CGA with Penn State. Based on her age, she’ll receive a fixed rate
* Assumes annual payments and a 2 percent charitable midterm federal rate
To see a no-obligation personalized illustration of your potential benefits, give us a call or return the enclosed reply card. You can also read more about gift annuities and figure your own benefits online at www.giftplanning. psu.edu/cga.
9.5%
10%
One-Life CGA Payment Rate
The Older You Are, The Higher The Rate
of 5.8 percent, with annual payments of $580. She’s entitled to an income tax charitable deduction of $3,115,* and $444 of each payment will be income tax-free throughout Ruth’s estimated life expectancy.
9%
8.1%
8% 7% 6%
5.5%
5.8%
65
70
6.4%
7.2%
5% 4%
Age
75
80
85
90+
Alumnus Remembers Mother
With Scholarship for Students Who Have Lost a Parent When children lose their mother or father, they can lose the chance to pursue their educational dreams, too. Alumnus Stephen S. Showers knows firsthand how hard it can be for these students to afford a college degree, and he has committed to an estate gift of $250,000 for a University-wide scholarship that will assist families facing the emotional and financial consequences of a parent’s death. “I was 7 years old when my father suddenly passed away, and my mother, Lucille, was faced with supporting our household on her own,” says Stephen, a native of Lewistown, Pennsylvania. “She knew that a college degree would be important to my future, and she saved as much as she could for my education. I would not have been able to enroll at Penn State, however, if she hadn’t found a Pennsylvania Senatorial Scholarship for me. I am creating this endowment to honor her.” A 1966 Penn State graduate, Stephen earned a dual master’s degree in Education Administration and Counselor Education from Colorado State University and returned to Penn
State for his doctoral studies. In 2009, after a long career in higher education, he retired from Towson University, where his posts included associate vice president for facilities management and interim vice president for administration and finance. He continues to live in Towson, Maryland, with his wife, Tate. “Through my work, I’ve had the opportunity to create a better educational experience for thousands of students, and that has been deeply rewarding,” Stephen says. “Now I want to make a difference for Penn State students. This scholarship is not aimed at applicants who have the highest GPAs and test scores. It is directed to undergraduates who have a strong desire
YOU’RE INVITED! The Atherton Society If you have chosen to support the future of Penn State through a
How to Become a Member
planned gift, you join a group of supporters who share a love
Membership is offered to all individuals who let us know they
and vision for our mission and, more important, our students.
included Penn State in their estate plans or as a beneficiary
We call this inspirational group The Atherton Society, named
of another type of planned gift. We look forward to properly
for George W. Atherton, Penn State’s seventh president, and
thanking you. We respect your wishes to remain anonymous,
his wife, Frances. Their efforts laid the groundwork for today’s
if you so choose, and any details of your gift that you disclose
achievements, much like your gifts do today.
are held in strictest confidence.
Gift Planning Newsletter Gift Planning Newsletter
“ Penn State Recognizes Our Potential for Excellence” Stephen S. Showers
to succeed and who do not have two parents at home to help.” Stephen has worked with Penn State to prepare a letter to be shared with recipients of the Stephen S. Showers Scholarship. He says, “I hope that by learning a little more about my mother and what she helped me to achieve, students will be inspired to seize the opportunity that Penn State offers and make the same opportunity possible for future students.”
Penn State Office of Gift Planning
Office of Gift Planning 214 The 103 Building University Park, PA 16802 814-865-0872 Toll-free: 1-888-800-9170 giftplanning@psu.edu
www.giftplanning.psu.edu
Michael J. Degenhart Director, Office of Gift Planning
Patricia L. Roenigk, Esq. Director, Individual Gift Planning
Brian S. Casey Gift Planning Officer
Thomas L. Parrish Associate Gift Planning Officer
Brian J. McCullough, Esq. Gift Planning Officer
Jeanne M. Sallade Assistant Director, Gift Planning
Kristine K. Otto, J.D., Ph.D. Gift Planning Officer
Terri L. Assael Gift Planning Assistant
Remembering Penn State
Remembering Penn State
5
6
When Antony Palocaren chose to attend Penn State, he focused on the value of the academic programs and the proximity of the University to his home in West Mifflin, Pennsylvania. What he didn’t learn until later was just how much Penn State valued him. “I’m now a graduate student in the Engineering Science and Mechanics Department,” Tony says, “and I know I made the right choice. The best education doesn’t come from books—it comes from hands-on learning experiences.” One of those hands-on learning experiences was an extensive research project for which Tony was chosen by his math professor, Dr. Corina Drapaca. “She saw potential in me,” Tony says about his professor. “She is someone who truly believes in going the extra mile to help out her students, and that’s something that I’ve found to be true of all Penn State professors.” As Tony was excelling at Penn State, his family began to struggle with the combination of their day-to-day expenses and Tony’s college costs. “When my family was experiencing financial challenges, I approached the
Schreyer Honors College and explained my situation. They had trust in me and agreed to help. It reduced a burden on my family,” Tony explains. Without the scholarship, Tony would have been forced to apply for highinterest loans from private institutions because he didn’t qualify for additional federal assistance. His scholarship quickly extinguished his escalating financial concerns and will make it possible for him to tackle his dreams immediately after graduation. Tony is finishing up his master’s degree and, after graduation in May, plans to commission as an officer in the U.S. Army and work in the Army Corps of Engineers. He hopes to one day have the opportunity to give back to Penn State. Tony says, “Scholarships and endowments boost
Antony Palocaren
our confidence as students and drive us to achieve more. …One day, we will repay this gratitude by helping the next generation of students who are struggling with rising college costs, and we will pass on the torch for generations to come.”
ssue... Inside This I and PAGE 2 ct the best a r tt a e w How Penn State brightest to PAGE 3 anges tax law ch Important for 2011 State PAGE 5 ce at Penn n re fe if d a turn Make ments in re y a p e iv e c and re
ESTATE PLANNING TIPS TO HELP YOU ACHIEVE YOUR CHARITABLE GOALS
WHAT IT TAKES To Attract the Best and Brightest to Penn State
TAX-SMART WAYS To Make a Difference at Penn State
Penn State students are graduating with an average personal
debt of more than $28,000. Scholarship Opportunities You can establish two basic types of scholarships: ■ Annual scholarship. This award provides the student with funds that are completely disbursed or liquidated in a single academic year. The scholarship may also be renewed with ongoing commitments from you.
© Penn State University and The Stelter Company The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/ estate taxes or state law may impact your results.
The Math Behind an Endowed Gift Even if it’s been a while since you opened a textbook, you should have no trouble understanding the calculation behind a never-ending gift to support Penn State students. How It Works: An Example Let’s say you would like Penn State to receive $1,000 a year every year after your lifetime. Penn State only spends 4.5 percent of an endowment’s value annually. The rest is reinvested in the endowment to offset inflation. To calculate the amount needed to perpetuate your annual support, divide the amount you wish to give each year ($1,000) by the percentage outlined in the spending policy (4.5 percent). The result is the size of the endowment that is needed—in this case, approximately $22,000.
PLANNING NEWS
Will 2011 Tax Law Changes Affect You? The beginning of a new year brings new changes to federal taxes, specifically estate taxes. Last year, federal estate taxes were repealed, meaning that everyone who died in 2010—regardless of how wealthy they were—didn’t pay any federal estate taxes. As of January 1, 2011, if your estate is worth more than $5 million when you die, called the basic exemption level, it may be subject to estate taxes as high as 35 percent. What Does This Mean For You? Most of us know that we need an estate plan to determine who gets what from our assets when we are gone. Plus, we know that without a valid will, we are leaving it up to the state to determine who gets the majority of our assets and belongings. With the estate tax exemption increased to the $5 million mark, for many of us, estate tax planning won’t be so necessary right now. The important part is deciding who gets what from our estates.
• The annual gift tax exclusion—the amount you can give to anyone gift tax– free each year—will remain at $13,000 in 2011 ($26,000 for married couples). • The carryover cost basis tax structure for inheritors in 2010 has also expired, which is good news. So unlike 2010, in 2011, beneficiaries inherit most assets at a
Return the enclosed reply card today to receive Extending Your Penn State Pride Forever, a guide on setting up a scholarship or other endowment at Penn State. We’re also including Your Personal Estate Planning Record, which will help you uncover the value of your estate and whether it will benefit your loved ones in a way you intend.
Never become so engrossed in legal and tax complexities that you lose sight of the people and charitable organizations you want to help. If you believe in what we do and you’d like to save on federal estate taxes—or even if estate taxes aren’t an issue—consider leaving a gift to Penn State through your estate plans. Here are two flexible ways to leave a lasting legacy, each of which can be used to support student scholarships or whichever Penn State program is closest to your heart.
Nothing we do to improve the quality of a Penn State education through the For the Future campaign will matter if students and families can’t afford the opportunities we offer. ■ Endowed scholarship. An endowment Once you decide to make a scholarship Every year, we lose talented, dedicated is funded first, and then the income gift, you have many choices. You students because of the cost of a Penn it earns is used to provide students can choose the assets to donate, the State degree, which is why scholarships with funds. The principal remains guidelines used to select the recipients, are our top campaign priority. With the untouched so the endowment the scholarship name, and much more. help of alumni and friends like you, we lasts forever. can ensure that our opportunities remain accessible for students whose means To learn more about making a gift that lasts forever, contact the Office of may be limited but whose ability and Gift Planning or visit www.giftplanning.psu.edu/endow. ambition are limitless.
Two FREE Guides!
cost basis equal to the fair market value as of the date of the deceased’s death, or, in some cases, six months later. Your Next Step Review your plans with your estate planning attorney as soon as possible to determine if anything needs to be updated.
Leave a gift (called a bequest) to us in your will or revocable living trust. You can leave us a specific asset, a specific dollar amount, or, more commonly, a percentage of the residue of your estate, and you can change your mind any time should circumstances change. To include a gift in your will, contact us or visit www.giftplanning.psu.edu/ bequestlanguage today to get official language to share with your attorney.
ame Penn State as the beneficiary N of a percentage of your IRA or other retirement plan assets. This simple option also allows you to change your mind at any time, and all you need to do to put your gift in motion is request a change-of-beneficiary form from your plan administrator. You’ll make a big difference to our students after your lifetime while saving your loved ones nearly 60 percent in taxes.
NAL PERSOec ord YOUR la R g nin state P n E
Extending Yo
ur
PENN STA TE PRIDE FOR EVER
The Charitable IRA Rollover Is Back! If you are 701⁄2 or older, Congress recently passed legislation that once again allows you to make tax-free gifts using funds transferred directly from your IRAs to qualified charities like Penn State. You can transfer any amount up to $100,000 through the end of 2011.
How This Benefits You The transfer generates neither taxable income nor a tax deduction, so you don’t have to itemize to take advantage of this opportunity. The transfer may also count against your unsatisfied required minimum distribution from your IRA. Contact us or visit our gift planning website to learn more.
Other Major Federal Tax Law Changes for 2011 • The exemption level for generationskipping transfer taxes is also $5 million, with a federal tax rate of 35 percent.
Remembering Penn State
Remembering Penn State
Remembering Penn State
2
3
4
Downloa d a samp le letter for your IRA administr a www.giftp tor at lan psu.edu/ ning. forms.
ESTATE PLANNING TIPS TO HELP YOU ACHIEVE YOUR CHARITABLE GOALS
WHAT IT TAKES To Attract the Best and Brightest to Penn State
TAX-SMART WAYS To Make a Difference at Penn State
Penn State students are graduating with an average personal
debt of more than $28,000. Scholarship Opportunities You can establish two basic types of scholarships: ■ Annual scholarship. This award provides the student with funds that are completely disbursed or liquidated in a single academic year. The scholarship may also be renewed with ongoing commitments from you.
© Penn State University and The Stelter Company The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/ estate taxes or state law may impact your results.
The Math Behind an Endowed Gift Even if it’s been a while since you opened a textbook, you should have no trouble understanding the calculation behind a never-ending gift to support Penn State students. How It Works: An Example Let’s say you would like Penn State to receive $1,000 a year every year after your lifetime. Penn State only spends 4.5 percent of an endowment’s value annually. The rest is reinvested in the endowment to offset inflation. To calculate the amount needed to perpetuate your annual support, divide the amount you wish to give each year ($1,000) by the percentage outlined in the spending policy (4.5 percent). The result is the size of the endowment that is needed—in this case, approximately $22,000.
PLANNING NEWS
Will 2011 Tax Law Changes Affect You? The beginning of a new year brings new changes to federal taxes, specifically estate taxes. Last year, federal estate taxes were repealed, meaning that everyone who died in 2010—regardless of how wealthy they were—didn’t pay any federal estate taxes. As of January 1, 2011, if your estate is worth more than $5 million when you die, called the basic exemption level, it may be subject to estate taxes as high as 35 percent. What Does This Mean For You? Most of us know that we need an estate plan to determine who gets what from our assets when we are gone. Plus, we know that without a valid will, we are leaving it up to the state to determine who gets the majority of our assets and belongings. With the estate tax exemption increased to the $5 million mark, for many of us, estate tax planning won’t be so necessary right now. The important part is deciding who gets what from our estates.
• The annual gift tax exclusion—the amount you can give to anyone gift tax– free each year—will remain at $13,000 in 2011 ($26,000 for married couples). • The carryover cost basis tax structure for inheritors in 2010 has also expired, which is good news. So unlike 2010, in 2011, beneficiaries inherit most assets at a
Return the enclosed reply card today to receive Extending Your Penn State Pride Forever, a guide on setting up a scholarship or other endowment at Penn State. We’re also including Your Personal Estate Planning Record, which will help you uncover the value of your estate and whether it will benefit your loved ones in a way you intend.
Never become so engrossed in legal and tax complexities that you lose sight of the people and charitable organizations you want to help. If you believe in what we do and you’d like to save on federal estate taxes—or even if estate taxes aren’t an issue—consider leaving a gift to Penn State through your estate plans. Here are two flexible ways to leave a lasting legacy, each of which can be used to support student scholarships or whichever Penn State program is closest to your heart.
Nothing we do to improve the quality of a Penn State education through the For the Future campaign will matter if students and families can’t afford the opportunities we offer. ■ Endowed scholarship. An endowment Once you decide to make a scholarship Every year, we lose talented, dedicated is funded first, and then the income gift, you have many choices. You students because of the cost of a Penn it earns is used to provide students can choose the assets to donate, the State degree, which is why scholarships with funds. The principal remains guidelines used to select the recipients, are our top campaign priority. With the untouched so the endowment the scholarship name, and much more. help of alumni and friends like you, we lasts forever. can ensure that our opportunities remain accessible for students whose means To learn more about making a gift that lasts forever, contact the Office of may be limited but whose ability and Gift Planning or visit www.giftplanning.psu.edu/endow. ambition are limitless.
Two FREE Guides!
cost basis equal to the fair market value as of the date of the deceased’s death, or, in some cases, six months later. Your Next Step Review your plans with your estate planning attorney as soon as possible to determine if anything needs to be updated.
Leave a gift (called a bequest) to us in your will or revocable living trust. You can leave us a specific asset, a specific dollar amount, or, more commonly, a percentage of the residue of your estate, and you can change your mind any time should circumstances change. To include a gift in your will, contact us or visit www.giftplanning.psu.edu/ bequestlanguage today to get official language to share with your attorney.
ame Penn State as the beneficiary N of a percentage of your IRA or other retirement plan assets. This simple option also allows you to change your mind at any time, and all you need to do to put your gift in motion is request a change-of-beneficiary form from your plan administrator. You’ll make a big difference to our students after your lifetime while saving your loved ones nearly 60 percent in taxes.
NAL PERSOec ord YOUR la R g nin state P n E
Extending Yo
ur
PENN STA TE PRIDE FOR EVER
The Charitable IRA Rollover Is Back! If you are 701⁄2 or older, Congress recently passed legislation that once again allows you to make tax-free gifts using funds transferred directly from your IRAs to qualified charities like Penn State. You can transfer any amount up to $100,000 through the end of 2011.
How This Benefits You The transfer generates neither taxable income nor a tax deduction, so you don’t have to itemize to take advantage of this opportunity. The transfer may also count against your unsatisfied required minimum distribution from your IRA. Contact us or visit our gift planning website to learn more.
Other Major Federal Tax Law Changes for 2011 • The exemption level for generationskipping transfer taxes is also $5 million, with a federal tax rate of 35 percent.
Remembering Penn State
Remembering Penn State
Remembering Penn State
2
3
4
Downloa d a samp le letter for your IRA administr a www.giftp tor at lan psu.edu/ ning. forms.
ESTATE PLANNING TIPS TO HELP YOU ACHIEVE YOUR CHARITABLE GOALS
WHAT IT TAKES To Attract the Best and Brightest to Penn State
TAX-SMART WAYS To Make a Difference at Penn State
Penn State students are graduating with an average personal
debt of more than $28,000. Scholarship Opportunities You can establish two basic types of scholarships: ■ Annual scholarship. This award provides the student with funds that are completely disbursed or liquidated in a single academic year. The scholarship may also be renewed with ongoing commitments from you.
© Penn State University and The Stelter Company The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/ estate taxes or state law may impact your results.
The Math Behind an Endowed Gift Even if it’s been a while since you opened a textbook, you should have no trouble understanding the calculation behind a never-ending gift to support Penn State students. How It Works: An Example Let’s say you would like Penn State to receive $1,000 a year every year after your lifetime. Penn State only spends 4.5 percent of an endowment’s value annually. The rest is reinvested in the endowment to offset inflation. To calculate the amount needed to perpetuate your annual support, divide the amount you wish to give each year ($1,000) by the percentage outlined in the spending policy (4.5 percent). The result is the size of the endowment that is needed—in this case, approximately $22,000.
PLANNING NEWS
Will 2011 Tax Law Changes Affect You? The beginning of a new year brings new changes to federal taxes, specifically estate taxes. Last year, federal estate taxes were repealed, meaning that everyone who died in 2010—regardless of how wealthy they were—didn’t pay any federal estate taxes. As of January 1, 2011, if your estate is worth more than $5 million when you die, called the basic exemption level, it may be subject to estate taxes as high as 35 percent. What Does This Mean For You? Most of us know that we need an estate plan to determine who gets what from our assets when we are gone. Plus, we know that without a valid will, we are leaving it up to the state to determine who gets the majority of our assets and belongings. With the estate tax exemption increased to the $5 million mark, for many of us, estate tax planning won’t be so necessary right now. The important part is deciding who gets what from our estates.
• The annual gift tax exclusion—the amount you can give to anyone gift tax– free each year—will remain at $13,000 in 2011 ($26,000 for married couples). • The carryover cost basis tax structure for inheritors in 2010 has also expired, which is good news. So unlike 2010, in 2011, beneficiaries inherit most assets at a
Return the enclosed reply card today to receive Extending Your Penn State Pride Forever, a guide on setting up a scholarship or other endowment at Penn State. We’re also including Your Personal Estate Planning Record, which will help you uncover the value of your estate and whether it will benefit your loved ones in a way you intend.
Never become so engrossed in legal and tax complexities that you lose sight of the people and charitable organizations you want to help. If you believe in what we do and you’d like to save on federal estate taxes—or even if estate taxes aren’t an issue—consider leaving a gift to Penn State through your estate plans. Here are two flexible ways to leave a lasting legacy, each of which can be used to support student scholarships or whichever Penn State program is closest to your heart.
Nothing we do to improve the quality of a Penn State education through the For the Future campaign will matter if students and families can’t afford the opportunities we offer. ■ Endowed scholarship. An endowment Once you decide to make a scholarship Every year, we lose talented, dedicated is funded first, and then the income gift, you have many choices. You students because of the cost of a Penn it earns is used to provide students can choose the assets to donate, the State degree, which is why scholarships with funds. The principal remains guidelines used to select the recipients, are our top campaign priority. With the untouched so the endowment the scholarship name, and much more. help of alumni and friends like you, we lasts forever. can ensure that our opportunities remain accessible for students whose means To learn more about making a gift that lasts forever, contact the Office of may be limited but whose ability and Gift Planning or visit www.giftplanning.psu.edu/endow. ambition are limitless.
Two FREE Guides!
cost basis equal to the fair market value as of the date of the deceased’s death, or, in some cases, six months later. Your Next Step Review your plans with your estate planning attorney as soon as possible to determine if anything needs to be updated.
Leave a gift (called a bequest) to us in your will or revocable living trust. You can leave us a specific asset, a specific dollar amount, or, more commonly, a percentage of the residue of your estate, and you can change your mind any time should circumstances change. To include a gift in your will, contact us or visit www.giftplanning.psu.edu/ bequestlanguage today to get official language to share with your attorney.
ame Penn State as the beneficiary N of a percentage of your IRA or other retirement plan assets. This simple option also allows you to change your mind at any time, and all you need to do to put your gift in motion is request a change-of-beneficiary form from your plan administrator. You’ll make a big difference to our students after your lifetime while saving your loved ones nearly 60 percent in taxes.
NAL PERSOec ord YOUR la R g nin state P n E
Extending Yo
ur
PENN STA TE PRIDE FOR EVER
The Charitable IRA Rollover Is Back! If you are 701⁄2 or older, Congress recently passed legislation that once again allows you to make tax-free gifts using funds transferred directly from your IRAs to qualified charities like Penn State. You can transfer any amount up to $100,000 through the end of 2011.
How This Benefits You The transfer generates neither taxable income nor a tax deduction, so you don’t have to itemize to take advantage of this opportunity. The transfer may also count against your unsatisfied required minimum distribution from your IRA. Contact us or visit our gift planning website to learn more.
Other Major Federal Tax Law Changes for 2011 • The exemption level for generationskipping transfer taxes is also $5 million, with a federal tax rate of 35 percent.
Remembering Penn State
Remembering Penn State
Remembering Penn State
2
3
4
Downloa d a samp le letter for your IRA administr a www.giftp tor at lan psu.edu/ ning. forms.
WINTER 2011
Supplement Retirement Income
With a Penn State Charitable Gift Annuity
How It Works: A charitable gift annuity (CGA) is a contract with Penn State in which you agree to make an
irrevocable gift of cash or marketable securities—so your gift doesn’t have to come straight out of pocket. In return for establishing a charitable gift annuity, we agree to make fixed annual payments to you for life. Assets that remain after your lifetime help support Penn State programs and students. Example: Ruth, age 70, establishes a $10,000 CGA with Penn State. Based on her age, she’ll receive a fixed rate
* Assumes annual payments and a 2 percent charitable midterm federal rate
To see a no-obligation personalized illustration of your potential benefits, give us a call or return the enclosed reply card. You can also read more about gift annuities and figure your own benefits online at www.giftplanning. psu.edu/cga.
9.5%
10%
One-Life CGA Payment Rate
The Older You Are, The Higher The Rate
of 5.8 percent, with annual payments of $580. She’s entitled to an income tax charitable deduction of $3,115,* and $444 of each payment will be income tax-free throughout Ruth’s estimated life expectancy.
9%
8.1%
8% 7% 6%
5.5%
5.8%
65
70
6.4%
7.2%
5% 4%
Age
75
80
85
90+
Alumnus Remembers Mother
With Scholarship for Students Who Have Lost a Parent When children lose their mother or father, they can lose the chance to pursue their educational dreams, too. Alumnus Stephen S. Showers knows firsthand how hard it can be for these students to afford a college degree, and he has committed to an estate gift of $250,000 for a University-wide scholarship that will assist families facing the emotional and financial consequences of a parent’s death. “I was 7 years old when my father suddenly passed away, and my mother, Lucille, was faced with supporting our household on her own,” says Stephen, a native of Lewistown, Pennsylvania. “She knew that a college degree would be important to my future, and she saved as much as she could for my education. I would not have been able to enroll at Penn State, however, if she hadn’t found a Pennsylvania Senatorial Scholarship for me. I am creating this endowment to honor her.” A 1966 Penn State graduate, Stephen earned a dual master’s degree in Education Administration and Counselor Education from Colorado State University and returned to Penn
State for his doctoral studies. In 2009, after a long career in higher education, he retired from Towson University, where his posts included associate vice president for facilities management and interim vice president for administration and finance. He continues to live in Towson, Maryland, with his wife, Tate. “Through my work, I’ve had the opportunity to create a better educational experience for thousands of students, and that has been deeply rewarding,” Stephen says. “Now I want to make a difference for Penn State students. This scholarship is not aimed at applicants who have the highest GPAs and test scores. It is directed to undergraduates who have a strong desire
YOU’RE INVITED! The Atherton Society If you have chosen to support the future of Penn State through a
How to Become a Member
planned gift, you join a group of supporters who share a love
Membership is offered to all individuals who let us know they
and vision for our mission and, more important, our students.
included Penn State in their estate plans or as a beneficiary
We call this inspirational group The Atherton Society, named
of another type of planned gift. We look forward to properly
for George W. Atherton, Penn State’s seventh president, and
thanking you. We respect your wishes to remain anonymous,
his wife, Frances. Their efforts laid the groundwork for today’s
if you so choose, and any details of your gift that you disclose
achievements, much like your gifts do today.
are held in strictest confidence.
Gift Planning Newsletter Gift Planning Newsletter
“ Penn State Recognizes Our Potential for Excellence” Stephen S. Showers
to succeed and who do not have two parents at home to help.” Stephen has worked with Penn State to prepare a letter to be shared with recipients of the Stephen S. Showers Scholarship. He says, “I hope that by learning a little more about my mother and what she helped me to achieve, students will be inspired to seize the opportunity that Penn State offers and make the same opportunity possible for future students.”
Penn State Office of Gift Planning
Office of Gift Planning 214 The 103 Building University Park, PA 16802 814-865-0872 Toll-free: 1-888-800-9170 giftplanning@psu.edu
www.giftplanning.psu.edu
Michael J. Degenhart Director, Office of Gift Planning
Patricia L. Roenigk, Esq. Director, Individual Gift Planning
Brian S. Casey Gift Planning Officer
Thomas L. Parrish Associate Gift Planning Officer
Brian J. McCullough, Esq. Gift Planning Officer
Jeanne M. Sallade Assistant Director, Gift Planning
Kristine K. Otto, J.D., Ph.D. Gift Planning Officer
Terri L. Assael Gift Planning Assistant
Remembering Penn State
Remembering Penn State
5
6
When Antony Palocaren chose to attend Penn State, he focused on the value of the academic programs and the proximity of the University to his home in West Mifflin, Pennsylvania. What he didn’t learn until later was just how much Penn State valued him. “I’m now a graduate student in the Engineering Science and Mechanics Department,” Tony says, “and I know I made the right choice. The best education doesn’t come from books—it comes from hands-on learning experiences.” One of those hands-on learning experiences was an extensive research project for which Tony was chosen by his math professor, Dr. Corina Drapaca. “She saw potential in me,” Tony says about his professor. “She is someone who truly believes in going the extra mile to help out her students, and that’s something that I’ve found to be true of all Penn State professors.” As Tony was excelling at Penn State, his family began to struggle with the combination of their day-to-day expenses and Tony’s college costs. “When my family was experiencing financial challenges, I approached the
Schreyer Honors College and explained my situation. They had trust in me and agreed to help. It reduced a burden on my family,” Tony explains. Without the scholarship, Tony would have been forced to apply for highinterest loans from private institutions because he didn’t qualify for additional federal assistance. His scholarship quickly extinguished his escalating financial concerns and will make it possible for him to tackle his dreams immediately after graduation. Tony is finishing up his master’s degree and, after graduation in May, plans to commission as an officer in the U.S. Army and work in the Army Corps of Engineers. He hopes to one day have the opportunity to give back to Penn State. Tony says, “Scholarships and endowments boost
Antony Palocaren
our confidence as students and drive us to achieve more. …One day, we will repay this gratitude by helping the next generation of students who are struggling with rising college costs, and we will pass on the torch for generations to come.”
ssue... Inside This I and PAGE 2 ct the best a r tt a e w How Penn State brightest to PAGE 3 anges tax law ch Important for 2011 State PAGE 5 ce at Penn n re fe if d a turn Make ments in re y a p e iv e c and re
WINTER 2011
Supplement Retirement Income
With a Penn State Charitable Gift Annuity
How It Works: A charitable gift annuity (CGA) is a contract with Penn State in which you agree to make an
irrevocable gift of cash or marketable securities—so your gift doesn’t have to come straight out of pocket. In return for establishing a charitable gift annuity, we agree to make fixed annual payments to you for life. Assets that remain after your lifetime help support Penn State programs and students. Example: Ruth, age 70, establishes a $10,000 CGA with Penn State. Based on her age, she’ll receive a fixed rate
* Assumes annual payments and a 2 percent charitable midterm federal rate
To see a no-obligation personalized illustration of your potential benefits, give us a call or return the enclosed reply card. You can also read more about gift annuities and figure your own benefits online at www.giftplanning. psu.edu/cga.
9.5%
10%
One-Life CGA Payment Rate
The Older You Are, The Higher The Rate
of 5.8 percent, with annual payments of $580. She’s entitled to an income tax charitable deduction of $3,115,* and $444 of each payment will be income tax-free throughout Ruth’s estimated life expectancy.
9%
8.1%
8% 7% 6%
5.5%
5.8%
65
70
6.4%
7.2%
5% 4%
Age
75
80
85
90+
Alumnus Remembers Mother
With Scholarship for Students Who Have Lost a Parent When children lose their mother or father, they can lose the chance to pursue their educational dreams, too. Alumnus Stephen S. Showers knows firsthand how hard it can be for these students to afford a college degree, and he has committed to an estate gift of $250,000 for a University-wide scholarship that will assist families facing the emotional and financial consequences of a parent’s death. “I was 7 years old when my father suddenly passed away, and my mother, Lucille, was faced with supporting our household on her own,” says Stephen, a native of Lewistown, Pennsylvania. “She knew that a college degree would be important to my future, and she saved as much as she could for my education. I would not have been able to enroll at Penn State, however, if she hadn’t found a Pennsylvania Senatorial Scholarship for me. I am creating this endowment to honor her.” A 1966 Penn State graduate, Stephen earned a dual master’s degree in Education Administration and Counselor Education from Colorado State University and returned to Penn
State for his doctoral studies. In 2009, after a long career in higher education, he retired from Towson University, where his posts included associate vice president for facilities management and interim vice president for administration and finance. He continues to live in Towson, Maryland, with his wife, Tate. “Through my work, I’ve had the opportunity to create a better educational experience for thousands of students, and that has been deeply rewarding,” Stephen says. “Now I want to make a difference for Penn State students. This scholarship is not aimed at applicants who have the highest GPAs and test scores. It is directed to undergraduates who have a strong desire
YOU’RE INVITED! The Atherton Society If you have chosen to support the future of Penn State through a
How to Become a Member
planned gift, you join a group of supporters who share a love
Membership is offered to all individuals who let us know they
and vision for our mission and, more important, our students.
included Penn State in their estate plans or as a beneficiary
We call this inspirational group The Atherton Society, named
of another type of planned gift. We look forward to properly
for George W. Atherton, Penn State’s seventh president, and
thanking you. We respect your wishes to remain anonymous,
his wife, Frances. Their efforts laid the groundwork for today’s
if you so choose, and any details of your gift that you disclose
achievements, much like your gifts do today.
are held in strictest confidence.
Gift Planning Newsletter Gift Planning Newsletter
“ Penn State Recognizes Our Potential for Excellence” Stephen S. Showers
to succeed and who do not have two parents at home to help.” Stephen has worked with Penn State to prepare a letter to be shared with recipients of the Stephen S. Showers Scholarship. He says, “I hope that by learning a little more about my mother and what she helped me to achieve, students will be inspired to seize the opportunity that Penn State offers and make the same opportunity possible for future students.”
Penn State Office of Gift Planning
Office of Gift Planning 214 The 103 Building University Park, PA 16802 814-865-0872 Toll-free: 1-888-800-9170 giftplanning@psu.edu
www.giftplanning.psu.edu
Michael J. Degenhart Director, Office of Gift Planning
Patricia L. Roenigk, Esq. Director, Individual Gift Planning
Brian S. Casey Gift Planning Officer
Thomas L. Parrish Associate Gift Planning Officer
Brian J. McCullough, Esq. Gift Planning Officer
Jeanne M. Sallade Assistant Director, Gift Planning
Kristine K. Otto, J.D., Ph.D. Gift Planning Officer
Terri L. Assael Gift Planning Assistant
Remembering Penn State
Remembering Penn State
5
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When Antony Palocaren chose to attend Penn State, he focused on the value of the academic programs and the proximity of the University to his home in West Mifflin, Pennsylvania. What he didn’t learn until later was just how much Penn State valued him. “I’m now a graduate student in the Engineering Science and Mechanics Department,” Tony says, “and I know I made the right choice. The best education doesn’t come from books—it comes from hands-on learning experiences.” One of those hands-on learning experiences was an extensive research project for which Tony was chosen by his math professor, Dr. Corina Drapaca. “She saw potential in me,” Tony says about his professor. “She is someone who truly believes in going the extra mile to help out her students, and that’s something that I’ve found to be true of all Penn State professors.” As Tony was excelling at Penn State, his family began to struggle with the combination of their day-to-day expenses and Tony’s college costs. “When my family was experiencing financial challenges, I approached the
Schreyer Honors College and explained my situation. They had trust in me and agreed to help. It reduced a burden on my family,” Tony explains. Without the scholarship, Tony would have been forced to apply for highinterest loans from private institutions because he didn’t qualify for additional federal assistance. His scholarship quickly extinguished his escalating financial concerns and will make it possible for him to tackle his dreams immediately after graduation. Tony is finishing up his master’s degree and, after graduation in May, plans to commission as an officer in the U.S. Army and work in the Army Corps of Engineers. He hopes to one day have the opportunity to give back to Penn State. Tony says, “Scholarships and endowments boost
Antony Palocaren
our confidence as students and drive us to achieve more. …One day, we will repay this gratitude by helping the next generation of students who are struggling with rising college costs, and we will pass on the torch for generations to come.”
ssue... Inside This I and PAGE 2 ct the best a r tt a e w How Penn State brightest to PAGE 3 anges tax law ch Important for 2011 State PAGE 5 ce at Penn n re fe if d a turn Make ments in re y a p e iv e c and re