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GIFT IMPACT TWO-MINUTE QUIZ: GIFT ANNUITIES

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o you know how a charitable gift annuity can support Iowa State and benefit you? Take this quiz to find out.

[1] A charitable gift annuity pays you A. fixed payments for life. B. variable payments for life. C. fixed payments for 20 years.

Senior Dietetics Sumner, Iowa Multi-year recipient of the Doris A. Adams Scholarship, established by Doris A. Adams (’48 food science) through a charitable gift annuity and additional cash gift

[3] You can fund a gift annuity with A. cash only. B. stocks only. C. cash or stocks.

“ Thanks to my experience at Iowa State, I have realized that I love to learn and that I can accomplish so much more than I ever imagined. I am so grateful for the opportunity to learn and obtain an education. I can’t even begin to say how thankful I am for the people who value education so much that they are willing to generously provide this support.”

[4] You can choose to have a charitable gift annuity make payments to one or two individuals. True or False

Did You Know? Seventy-two percent of Iowa State students must borrow money to finance their education. Return the enclosed survey to learn more about the different ways you can help.

Call us at 800.621.8515 today to learn more about the benefits of charitable gift annuities.

Answers: (1) A, (2) C, (3) C, (4) True, (5) True

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TAKE OUR 30-SECOND SURVEY Are you interested in learning more about the many benefits a charitable gift annuity has to offer? Request our gift annuity guide, Feel Secure in Your Retirement Years, by completing the enclosed survey and we’ll send you your complimentary copy immediately.

>> HOW TO REMEMBER IOWA STATE UNIVERSITY IN YOUR WILL Share the following language with your estate planning attorney to add to your will or living trust. I give, devise and bequeath to the Iowa State University Foundation, a not-for-profit corporation existing under the laws of the State of Iowa and located at Ames, Iowa, ______ (percent of my estate, dollars, property, securities, etc.) to be used for ______ (however you wish for your gift to be used) at Iowa State University.

S T A T E

U N I V E R S I T Y

F O U N D A T I O N

NSIGHT I S

Stephanie Potratz

[2] If you create a charitable gift [5] Upon the death of the second annuity this year, you are allowed person receiving payments, the to take remaining value of the gift annuity is available to help support Iowa A. an estate tax deduction. State. True or False B. a charitable income tax deduction for the entire amount of the asset donated. C. a charitable income tax deduction for a portion of the value of the asset donated.

I O W A

A CHARITABLE PLANNING GUIDE FOR ISU ALUMNI AND FRIENDS SPRING 2012

TIME TO GIVE BACK

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ike many couples who met at Iowa State, Rich and Carm Greenlee have great memories of their college days. They shared a close-knit group of friends and are still in touch with many of them. Carm, a Minnesota native, was a member of the Kappa Delta sorority and graduated in child development in 1965. Rich, a 1966 graduate in construction engineering, was a member of the Delta Tau Delta fraternity. Rich grew up in Des Moines and came to Iowa State because “that’s where you go to be an engineer.” He started in the architectural engineering program, but was intrigued by professor Tom Jellinger’s teachings, which focused on construction engineering and were new to Iowa State at the time.

“ Tom Jellinger was the guy who shaped what I wanted to do.”

— Rich Greenlee

After jobs in Texas, Iowa and Minnesota, both realized that they wanted more than to work for someone else and their entrepreneurial spirits took over. Rich opened his own engineering consulting firm and Carm created a business partnership as a manufacturer’s representative with a fellow Iowa State alumna and friend. Rich has since retired, but continues to consult with his most recent company, Engineering Partners, and Continued on page 4

Rich and Carm Gr eenlee

IN THIS ISSUE •H elping Others Pays in So Many Ways •C ase Study: Creating an Iowa State Gift Annuity

Iowa State University Foundation 2505 University Boulevard P.O. Box 2230 Ames, Iowa 50010-2230 Toll-free: 800.621.8515 www.isugift.org

The ISU Foundation is acknowledged by Iowa State University as the preferred channel for administering trust and estate gifts that benefit the university. This is accomplished by using the name Iowa State University Foundation in your legal documents. Please contact the foundation for additional information.

Visit www.isugift.org to meet other donors and learn why they believe it is important to invest in the future of Iowa State University.

•T wo-Minute Quiz: Gift Annuities •G ift Impact: Student Says Thank You

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TIME TO GIVE BACK

HELPING OTHERS PAYS IN SO MANY WAYS

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hen it comes to supporting Iowa State University’s long-term future, the charitable gift annuity is one method favored by many of our donors. When you set up a charitable gift annuity (CGA) with the ISU Foundation, we’ll provide you with lifetime payments that remain constant even with a fluctuating stock market. This offers you the opportunity to supplement your retirement income and continue to make a difference at Iowa State.

HOW IT WORKS

? Did You Know? Thanks to donor support, more than 80 new endowed faculty positions were created during Campaign Iowa State.

A CGA is a simple contract between you and the ISU Foundation. You make a donation using cash or marketable securities and we, in turn, pay you a fixed amount for life. With this type of gift, you can feel secure knowing you can count on receiving stable payments for as long as you live.

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.

YOUR TAX BENEFITS Gift annuities offer additional benefits besides secure and stable payments. You can also receive an income tax deduction for a portion of your gift in the year you set up your CGA.

[2] G ift annuities make lifetime payments you can never outlive. You can also provide payments for another individual, such as your spouse. [3] Y our payments may begin immediately, or you can defer the start of your payments into the future, such as five or 10 years from now, which may increase your annual payout as well as your income tax deduction. [4] Y ou can choose to restrict your gift for a particular purpose or leave it unrestricted so we can be sure resources are available for our most urgent needs as they arise.

See Your Benefits You can request a free no-obligation illustration of how a gift annuity could benefit you and Iowa State by returning the enclosed survey or calling us at 800.621.8515.

Here is a quick overview of helpful items to know before establishing a gift annuity: [1] You can use cash or, if you’d rather not give straight out of pocket, you can use stocks to fund your gift annuity.

TWO LIVES

Age

Rate

Ages

Rate

50

3.7%

50/55

3.3%

55

4.0%

55/60

3.7%

60

4.4%

60/65

4.0%

65

4.7%

65/70

4.4%

70

5.1%

70/75

4.8%

75

5.8%

75/80

5.3%

80

6.8%

80/85

6.1%

85

7.8%

85/90

7.3%

90+

9.0%

90/95+

8.8%

CASE STUDY: CREATING AN IOWA STATE GIFT ANNUITY Since Roger and Karen, who are both 70 years old, would like to secure their retirement income, they decide to create a charitable gift annuity with the ISU Foundation. This way they can make the $10,000 cash gift they’ve always wanted and, in exchange, they will receive $460 each year for as long as either one is living. Unlike some pension plans, their gift annuity payments do not stop or reduce in size at the death of the first spouse. In addition, approximately $369 of each $460 payment is income tax–free to them.

Continued from page 1 Carm now works part-time as a buyer for a small gift shop. The Greenlees have three children and nine grandchildren. All live nearby in the Twin Cities. Their youngest son, Greg, followed in his parents’ footsteps and attended Iowa State, earning a degree in civil engineering. He is now a principal at his dad’s company, Engineering Partners.

SAYING THANK YOU WITH A WIN-WIN GIFT

WHAT YOU NEED TO KNOW

CHECK OUT YOUR PAYMENT RATE ONE LIFE

Your age when the payments begin and the amount of your donation determine the size of your payment. The older you are, the higher your fixed rate (see charts, below). You receive payments for life, and, if you choose, you can have the payments continue for the life of another person. After that, the remaining funds are used to support our students and programs (or the area you choose to support).

THANK YOU FOR YOUR SUPPORT!

(After more than 20 years, when they reach their combined life expectancy, the entire gift annuity payment then becomes taxable as ordinary income.) They can also deduct approximately $2,587* as an income tax deduction when they itemize on their tax return. Roger and Karen are happy with their choice of a CGA — they are able to make a meaningful charitable gift to Iowa State and at the same time give themselves stable and secure payments for life.

*Based on annual payments and a 1.4 percent charitable midterm federal rate.

In 2008, the construction engineering program began planning for its 50th anniversary. Part of the celebration included a fundraising effort to create and name a laboratory in honor of Rich’s former professor Tom Jellinger. Rich wanted to honor the man who helped define his career path, so the Greenlees made a pledge to support the Tom and Ro Jellinger Laboratory in Town Engineering Hall. After talking with representatives from the ISU Foundation, the couple figured out a way they could do something meaningful. They decided

to create the Greenlee Lectureship in Construction Engineering. They liked the idea of an annual lecture series to bring well-known speakers to campus and to help bring prestige to Iowa State’s construction engineering program. The Greenlees decided to establish a charitable gift annuity to fund their lecture series. With this type of gift, they qualify for an immediate income tax deduction for part of their gift and receive fixed payments for the remainder of their lives. The proceeds from the charitable gift annuity will one day create an endowed fund for the Greenlee Lectureship, ensuring that the lecture continues for many years to come. In addition to their gift annuity, Rich and Carm decided to make an annual cash gift right away, so that the lecture could get started more quickly. The first lecture will likely happen next spring, to coincide with the annual banquet in construction engineering. “We had a very good education at Iowa State,” Carm said. “It was time for us to give back.”

LET US KNOW We realize that many of you have remembered Iowa State in your estate plans and, for many different reasons, have chosen not to reveal your intentions to us. To this visionary group, we’d like to take this opportunity to express our sincere gratitude and encourage you to step forward. By sharing your plans with us, we can ensure that your gift will be used exactly as you intend. Use the enclosed survey or contact us to notify us of your intentions.

Your gift, large the or small, helps lty cu fa , students a and staff of Iow . ity rs ve State Uni

“ We wanted to do something to benefit students as a whole.” — Carm Greenlee