fall 2011

News and Information from Planned Giving ALSO In this issue

IRA Rollover to Expire Soon Mendillo Highlights Endowment Success page 3 Unusual Assets: and Outlines Priorities for the Coming Year Rare Shell Collection Given to Harvard page 4 “Our mission and Harvard’s are inextricably linked,” said Jane Mendillo, president and chief executive officer of Harvard Management Company (HMC). Bequests at Harvard This deep-rooted commitment to supporting the teaching, learning, and page 4 research that go on at Harvard every day serves as the foundation of Gift Annuities at Harvard HMC’s strategy for the endowment. Following the September release of page 5 the HMC Endowment Report, Mendillo sat down with Gift Strategies to share her thoughts on the endowment’s strong performance in fiscal year Family, Finance, and 2011 and to outline her strategy for the coming year. Philanthropy Dinners pages 6 and 7 Jane Mendillo (Continued on page 2)

Best Supporting Role: Harvard Couple Uses Lead Trust to Support and Future Generations

The one course that economics con- After graduating, she earned her centrator David Wong AB ’85 and PhD in comparative literature from comparative literature concentrator Princeton University as well as an June Yip AB ’85 took together at MA in cinema studies from the Harvard was a class on Japanese University of California, Los Angeles cinema. This shared experience left (UCLA). She remains connected such a lasting impression that when with UCLA, teaching courses in David Wong AB ’85 and June Yip AB ’85 David and June decided to establish a Chinese cinema. June and David lead trust at Harvard, they chose to admire the community-focused direct the initial distributions from efforts of the HFA—public screenings their newly founded trust toward and lectures by visiting filmmakers immediate and long-term funding for and scholars—and hope their gift will Record Low the Harvard Film Archive (HFA). help the HFA expand and flourish. Lead Trust Rate June’s support of the HFA is rooted David pursued a different path at The interest rate for charitable lead trusts in personal and professional connec- Harvard and, after graduation, went is at a record low of 1.4 percent (at press tions. Although she was always a on to receive his MBA at Stanford time), giving donors a tax-efficient way to movie fan, it was not until she dis- University. His work has focused on transfer wealth to future generations while covered the HFA and the Carpenter private equity and growth capital, but benefiting Harvard in the interim. Contact Center for the Visual Arts that she he has fond memories of the wide University Planned Giving at 800-446-1277 began to think seriously about cinema variety of classes that he took at as a focus for her future career. Harvard and is a firm believer in the for more information. (Continued on page 3) 1 Mendillo Highlights Endowment Success and Outlines Priorities for the Coming Year (Continued from page 1­)

Q: How did the economic landscape At the same time, we have filled out strategy, we plan to incrementally and in FY11 feel in comparison with FY10? our real estate team and added signif- judiciously move more assets in-house. The landscape was strong through icantly to our risk group and invest- Given the benefits of our hybrid model, most of the year. Overall, we saw ment support organization. including the alignment of interests, cost efficiency, and greater transparency continued growth in public and We also made progress fostering we gain, it makes good sense for private equity markets, especially greater interchange among the tal- Harvard to allocate a larger proportion emerging markets. By the end of the ented individuals in our company. As of the total portfolio to internal man- fiscal year, the long upward climb in we have filled out our organizational agement in the coming years. equity market values that started in structure and made greater use of more March 2009 lost momentum as more integrated teams, we are gaining deeper Q: Does the recent market volatility worries on the economic front emerged insights by combining perspectives impact those plans? both here in the U.S. and in Europe. from public markets, private markets, No. Although current markets are Nevertheless, we believe our strategy traditional assets, alternatives, deriva- choppy and future returns are uncer- will enable us to generate attractive tives, and U.S. and foreign currency. tain, we have been able to structure returns for Harvard over the long term. Q: What were the biggest challenges? the portfolio so that it is more liquid Q: What were HMC’s goals for the and agile, even in difficult markets. endowment last year? Though the overall performance We strive to take advantage of oppor- exceeded our benchmarks and tunities that may present themselves We had three main goals for the expectations, there were areas of the in times of market volatility. portfolio: growth, liquidity, and risk portfolio that faced challenges in management. I am pleased to report FY11. Emerging market equities Q: How does the endowment support that we made significant progress in experienced wide disparities in returns Harvard’s mission? each of these areas, which enabled us from one country to another. In the Our primary goal, which drives all of to have strong growth of the portfolio’s real estate market, prices in core real our work, is to grow the endowment assets, all in support of the University’s estate (such as fully leased properties) so that Harvard can continue to day-to-day operations and priorities escalated rapidly while other real develop leading academic programs, now and over the long term. estate (property not fully developed) provide financial aid, and fund science Q: What were the major accomplishments showed much slower signs of recovery and medical research. Returns from within the portfolio last year? from the 2008–2009 crisis. the endowment, combined with the Across the board, every asset class Q: What are your objectives for the critical support that Harvard receives had a positive nominal return. As of portfolio in the coming year? from donors, make it possible for Harvard to strive for and achieve an June 30, 2011, the portfolio was valued We remain committed to our stance extraordinarily high level of excellence at $32 billion, reflecting a 21.4 percent as long-term investors and will today and in the future. ❖ total investment return. Our domestic continue to refine our strategies to equity, natural resources, and fixed strengthen our returns in each invest- income portfolios, in particular, did ment class while maintaining discipline To read the HMC Endowment very well. through any market shifts. Report, please visit We made great progress in strength- We also plan to continue building our ening our internal investment team team. We made significant progress http://alumni.harvard.edu/give/ with several important new additions. in this area in FY11, and I want to publications/hmc We have a new internal group focusing capitalize on that momentum by on credit markets and a recent in-house expanding the breadth of our coverage addition who is an expert in trading through the internal team. Chinese equities. We have also added active commodities trading to our Though external management will internal management capabilities. always be an important part of our 2

417450.CS5.indd 2 10/25/11 8:48 AM Best Supporting Role (Continued from page 1)

important role that liberal arts education has played in his life. As an investment professional, David was also attracted to both the efficiency and efficacy of the lead trust: “As we explored different investment options, the lead trust at A film reel is examined at the Harvard Film Archive Harvard really resonated because it lets us accomplish one of our estate planning goals: to transfer some of our estate to our children while supporting Harvard in a current and meaningful way.” DONOR David and June, who have also served as co-chairs on their reunion class giving committees since their 15th reunion, see their trust as another way to ensure that future generations of students can have access to the same opportunities that they did. The two came to Harvard via different routes: June, a Taiwan native who grew up in Del Mar, California, GIFT applied to Harvard sight unseen, knowing only of its reputation. David, on the other hand, was very familiar with Harvard; he was the fourth in his large Chinese LEAD ANNUAL American family to make the journey from Los Angeles to TRUST INCOME Cambridge. Neither one of them, however, would have been able to attend Harvard without the help of the generous PRINCIPAL AT financial aid they received, so they share a sense of gratitude TRUST END for this support and for the experiences they gained together at Harvard. Charitable Lead Trust Equally important in their decision to give is their confidence With a charitable lead trust, you that their gift can have a real impact. “By making a gift can make annual gifts to Harvard to Harvard,” noted June, “you have the chance to affect for a term of years, after which the lives of those within and beyond its walls. We feel the property reverts to your family honored to be able to make a small contribution toward ❖ at little or no tax cost. positive change.”

IRA Rollover to Expire Soon The tax-free IRA rollover gift opportunity expires Looking to find out more about December 31, 2011. planned giving at Harvard?

If you are 70½ or older, you can transfer up to $100,000 from your Contact Harvard University’s Planned Giving team at IRA to Harvard in the form of an outright gift. You can meet your 800-446-1277 or [email protected] to obtain personalized required minimum distribution and avoid income tax on the transfer. information on the wide range of income and tax benefits Visit http://alumni.harvard.edu/give/ira or call University Planned that are available to you. Giving at 800-446-1277 for more information and sample instruction letters to initiate your gift.

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417450.CS5.indd 3 10/28/11 11:22 AM Unusual Assets: Rare Shell Collection Given to Harvard

Harvard planned gifts come in all shapes and sizes, from traditional gifts in the form of funds to more unusual assets, such as real estate, art, and even crustaceans. Recently, Harvard became the beneficiary of a unique planned gift, given in the form of a bequest Harvard’s Museum of Comparative Zoology of a prized collection of over 5,000 rare shells. The original owner of the collection was Joseph George Claud-Mantle, the son of a British officer and Indian woman who made his way to America in the late nineteenth century and became a successful engineer. Bequests at Harvard After his death in 1934, his family preserved Did you know that... their ancestor’s legacy and set out to find it a permanent home where the public could 1 The Cambridge Queen’s Head pub in the basement of Memorial Hall is appreciate the collection. Staff members from named after the Queen’s Head Inn and Tavern in , England, Harvard’s Museum of Comparative Zoology which was given by John Harvard as a bequest to the College. traveled to Canton, Connecticut (where The pub currently serves a microbrew developed for Harvard aptly Claud-Mantle’s descendants currently reside), named “1636 Ale.” to pick up the shells and bring them back to Cambridge—where they will join Harvard’s existing collection and provide researchers 2 In 1716, Daniel Williams established Harvard’s first annuity to provide with access to data from species and a scholarship fund. locations previously underrepresented in Harvard’s holdings. ❖ 3 Over the last 10 years, bequests have accounted for 10 percent of the University’s gift receipts.

Make a Bequest It is easy to support Harvard through a bequest—simply include the following language in your estate plan:

“I give ( ______dollars or _____ percent or all of the residue of my estate) to the President and Fellows of , a Massachusetts educational, charitable corporation (for its general purposes or for the benefit of School or Unit).”

A sample of some of the rare shells contained in Claud-Mantle’s collection Bequests can be tailored to your individual objectives. Please contact Harvard University’s Planned Giving team at 800-446-1277 or [email protected].

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417450.CS5.indd 4 10/28/11 10:52 AM University Planned Giving News

Harvard University Gift Annuity Rates Charitable Gift Annuity Annuity rates are based on your age or the age(s) of your beneficiary(ies) when A charitable gift annuity is a simple contract quarterly payments begin. between you and Harvard that offers a tax-advantaged way to provide guaranteed Donor makes …and annuity …or waits 5 years income for yourself and/or someone else. a gift today at begins immediately before annuity begins current age(s)… at this rate: at this rate:

60 4.9% 6.7% DONOR 60/60 4.0 5.1

70 6.2 8.7

70/70 5.5 7.8

80 8.0 11.3 ANNUAL GIFT INCOME 80/80 7.5 9.5 HARVARD ACCOUNT If you hold CDs (certificates of deposit), you may want to consider taking advantage of more favorable payment rates by donating cash to Harvard to PRINCIPAL AT establish a charitable gift annuity. Current CD rates range from ½ percent to TRUST END 1 ¾ percent versus gift annuity rates of 4 percent or higher.

Staff Announcements UPG welcomes two new staff members to the team, Tanya Rotolo and Ronald Berry ALM ’10. Tanya is a graduate of St. Lawrence University and holds a degree in psychology. Ronald earned his undergraduate degree in sociology from New York University and his master’s degree in managing nonprofits from the . As a staff assistant, Tanya will be working closely with the UPG team to coordinate all of our marketing and communications activities, while Ronald will be serving as a planned giving coordinator providing strategic support to the team and working closely on planned gift processing. UPG is also happy to announce three recent promotions within the department. Alasdair Halliday AB ’82 has assumed the role of philanthropic adviser and director of planned giving. Jane Verrill has been promoted to assistant director of planned giving, and Lauren LaHatte has been promoted to planned giving coordinator. Congratulations to all!

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417450.CS5.indd 5 10/25/11 8:49 AM Upcoming UPG Events: University Planned Giving Events View to the Future Luncheon New York Dinner and discussion on Wednesday, October 26, 2011

Family, Finance, and Philanthropy Family, Finance, and Philanthropy Dinners This past spring, guests enjoyed Family, Finance, and Philanthropy Chicago programs in San Francisco, Los Angeles, and New York. Monday, December 5, 2011 Los Angeles If you are interested in receiving materials or sponsoring a program in your Wednesday, February 29, 2012 area, please contact Mary Abbott at 800-466-1277 or [email protected]. New York Tuesday, May 8, 2012

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San Francisco, march 2011 1. George G. Montgomery, Jr. MBA ’59 and Henry E. Riggs MBA ’60 2. Ralph F. (Fred) Caspersen AB ’64, Ruth M. Owades MBA ’75, EXED ’93, Held at the Fairmont San Francisco, the reception was and Michele Disario Stratton AB ’67 hosted by William H. C. AB ’78 and Diana S. Chang, Barry J. Murphy AB ’73 and Rosemary Dunbar, and 3. Diana S. Chang and William H. C. Chang AB ’78 Dwight D. Taylor AB ’41, LLB ’44, AMP ’71. 4. Barry J. Murphy AB ’73, Rosemary Dunbar, and Dwight D. Taylor AB ’41, LLB ’44, AMP ’71

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417450.CS5.indd 6 10/28/11 10:53 AM Los Angeles, march 2011

Charles Wolf, Jr. SB ’44, MPA ’48, PhD ’49 sponsored the evening at the Peninsula Beverly Hills. 1. Robert A. Schultz AM ’65, PhD ’71, Jacqueline L. Landry, Merrill Fellow ’04, and Dana Goldinger Hollinger 2. Charles W. Collier MTS ’73 and Charles A. Collier, Jr. AB ’52, LLB ’55 3. Charles Wolf, Jr. SB ’44, MPA ’48, PhD ’49, Theresa Van De Wint Wolf, Jann Williams, Kenneth S. Williams AB ’78, and Allan L. Alexander JD ’65 1

New York, may 2011

Held at the Harvard Club of New York City, this event was hosted by Catherine A. Gellert AB ’93 and Morris E. Zukerman AB ’66, MBA ’70 4. Karen D. Zukerman and Morris. E. Zukerman AB ’66, MBA ’70 5. Janet Nezhad Band AB ’83, MBA ’89, JD ’90 and Anthony K. Obst AB ’67, MBA ’72 6. William S. Bahary AB ’57, John A. K. Bradley AB ’55, and Susan K. Bahary

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417450.CS5.indd 7 10/25/11 8:49 AM University Planned Giving Non-Profit Org. Harvard University U.S. Postage 124 Mount Auburn Street PAID Cambridge, Massachusetts 02138-5795 Nashua, NH Permit No. 375

University Planned Giving professionals How to Reach Harvard’s Planned Giving Professionals can help you develop gift plans for University Planned Giving 617-495-4647 anne McClintock any part of the University: Harvard University 800-446-1277 124 Mount Auburn Street 617-495-8130 (fax) Harvard University President’s Fund Cambridge, MA 02138-5795 Harvard College email: [email protected] Graduate School of Arts and Sciences Internet: http://alumni.harvard.edu/give/planned-giving Business School School of Dental Medicine Business School 617-495-6027 Don Etheridge Graduate School of Design Divinity School Harvard College, GSAS 617-495-4352 Peter Kimball Graduate School of Education Law School 617-496-9265 Charles Gordy School of Engineering and Applied Sciences Extension School Medical School 617-384-8449 Mary Moran Perry Kennedy School 800-922-1782 Law School Senior Philanthropic Adviser 617-495-5218 Charles Collier Medical School School of Public Health Radcliffe Institute for Advanced Study Memorial Church American Repertory Theater Arnold Arboretum

Alumni Affairs and Development Communications © 2011 President and Fellows of Harvard College UPG 12-244 11/11

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