Newsletter.FINAL 9/9/04 5:20 PM Page 1 f 2 CHARITABLE R EMEMBER ESTATE PLANNING & TAX TIPS F ALL SS TTANFORDANFORD 2004 Creating a Legacy Stanford football co-captains and all-American quarterback John Brodie, #12, ’58, and tackle Paul Wiggin, #79, ’57, check in with the referee before their 1956 game against Michigan State. Although Stanford lost that game 21–7, Brodie went on to play professionally for the San Francisco 49ers. Wiggin played for the Cleveland Browns and returned to Stanford during the 1980s as the football team’s head coach. EVERYBODY WINS ike many of Stanford’s alumni and friends, M. Carné also support herself. He asked if she had considered L Linder, ’40, wants to support her alma mater. The making a life income gift. Carné responded, “No, former owner of her own travel business has spent her what’s that?” retirement volunteering for the university, attending She learned that life income gifts provide donors Stanford football and basketball games, and organizing or their loved ones with regular income during their trips for her classmates. She was interested in supporting lifetimes, after which the remaining gift is used by the Stanford financially, as well. university. These types of gifts can help donors realize “I want to do what I can for Stanford,” Carné says. significant tax savings as well. When included in long- It was a conversation with her classmate range financial plans, life income gifts enable donors to Lyle Cook, ’40, then working in Stanford’s Office of support Stanford in ways they might not have imagined Development, that convinced her she could provide possible. There are several types of life income gifts significant monetary support to the university and from which to choose. ❖ Newsletter.FINAL 9/9/04 5:20 PM Page 2 REMEMBER STANFORD he and his wife, Betty, ’48, have set up three gift annuities at the university. The couple established one gift annuity using appreciated securities, which Bud says is a good way to minimize capital gains taxes on the sale of the stock. “If you have appreciated stock and you’re going to give it away anyway, then this is a way of getting a good income without any tax penalties,” Bud says. The Eldons also “We are committed to noted that, with the low supporting Stanford interest rates over the Carné Linder at her 1940 graduation from Carné Linder today anyway, and there Stanford. Behind her, Hoover Tower is still past several years, they under construction. received a better return happened to be a way on their cash through to consider these alternatives—just Since her conversation with Lyle Cook, Carné has two additional gift established four charitable gift annuities—one type of life annuities than they sitting on the money income gift—at Stanford. She made her gifts using highly would have earned had wasn’t a very attrac- appreciated stock, which resulted in capital gains tax they left it in the bank. tive alternative. savings as well as significant tax deductions. These gift “When interest rates are This way, we can going lower, giving cash annuities pay her a quarterly income for the rest of her give a better benefit is a better alternative life, more than she would have received from the stock to Stanford.” dividends, and will eventually support undergraduate because you get a much – Bud & Betty Eldon education at Stanford. better return,” Bud says. “The money is going to a great cause,” Carné says. While the Eldons benefit from their gift annuities, “And, the income I’m getting is certainly a great satisfac- they wouldn’t have made them if they hadn’t also wanted tion. I’m so grateful that Lyle Cook told me about this, to support Stanford—the place where they met, where and I’m sure there are a lot of other people who don’t their son and grandson earned their degrees, and where know about it, but who should.” another grandson currently attends. Bud also credits his Stanford education with leading to his successful career MAKING IT SIMPLE at Hewlett-Packard. Life income gifts suit the Gift annuities can be an excellent source of needs of many donors. The dependable cash flow during retirement. But for younger simplest type of life income donors, gift annuities may not make sound financial gift is the charitable gift sense. However, deferred gift annuities can be a good annuity (or “gift annuity”). way to make a gift to A gift annuity is a contract Stanford today while between the donor and ensuring a steady source Stanford. In exchange for of retirement funds in making a gift to Stanford, the future. By deferring the university promises to income payments, pay the donor and/or other younger donors can earn Bud Eldon was an electronic technician in the U.S. Navy during World War II. He was beneficiaries a fixed amount a better annuity rate drafted into service after his freshman year each year, based on their at Stanford and returned to earn his degree than if they received the after the war. ages and the size of the gift, payments immediately. for the rest of their lives. Charles “Bud” Eldon, ’48, M.B.A. ’50, has been a Bud and Betty Eldon today volunteer fundraiser for Stanford since 1957 (he received the Gold Spike Award for volunteer service in 1972), and ❖ 2 Newsletter.FINAL 9/9/04 5:20 PM Page 3 CHARITABLE ESTATE PLANNING DOUBLE COUNTING “It is nice to do such Currently, Stanford provides donors with the opportunity things while you’re still to further enhance the benefit of their gift annuities. alive—you can see some of Economics Professor Emeritus John Gurley, ’42, Ph.D. the results,” John says. He ’51, and his economist wife, Yvette, M.S. ’65, under- and Yvette have already standably wanted to maximize the value of their gift to received thank-you notes Stanford. They learned that Stanford has two programs from those supported that would match their gifts: The Campaign for by their funds. He also Undergraduate Education and the Hewlett Challenge observed, “It’s good to get in the School of Humanities and Sciences. these affairs in order, for The Gurleys established two annuities which, when then you don’t have to combined with certain other gifts they made, totaled over keep thinking about these $1 million in present value for Stanford. The matching matters—the whole thing John and Yvette Gurley funds doubled the size of their gifts and became available is done.” immediately to establish two endowed funds: one for John, who was a Stanford professor from 1961 undergraduate education and one to support graduate to 1990, applied to Stanford in 1938 but was denied. students in economics conducting research through the He finally was accepted as a junior transfer on a tennis Stanford Institute for Economic Policy Research. The latter scholarship. “Once I induced Stanford to focus less fund, the B.F. Haley and E.S. Shaw Fund, holds a special on my grades and more on my forehand, it was easy,” place in the Gurleys’ hearts, as it recognizes two Stanford he says. professors who played important roles in their lives. John’s association with Stanford goes back to 1940 “We wanted to honor Haley and Shaw,” Yvette and Yvette’s to 1946. They both have a great appreciation says, “because they were not only our mentors but ones of Stanford. “We have both been part of Stanford for who helped us tremendously in our careers—and to a very long time,” John says. “We are lucky to be in a honor them in a way that would continue their own position to be able to match our appreciation with some early contributions to the economics department.” gifts—and then get the gifts themselves matched!” v RECENT ESTATE GIFTS living trust. The gifts will be used partly to endow MARY V. SUNSERI, the James and Doris McNamara Fund, which will A.M. ’40, much-loved A sampling of recent estate gifts to Stanford is NEWS SERVICE provide scholarships for undergraduates majoring mathematics professor described below. in art, and partly for addition to the Doris at Stanford, left a specific DANILY C. BELL, ’29, designated the remainder CHUCK PAINTER/STANFORD McNamara Endowed Fund for Women in the gift of $1,000 to the math- of certain charitable trusts and also provided for Graduate School of Business. The latter fund ematics and computer a bequest to the university through his living trust. provides professionally facilitated counseling, science library. She also Mary Sunseri, beloved These generous gifts created the Danily C. and member of Stanford’s guidance, and support for women students. gifted a residue of her mathematics faculty Laura Louise Bell Professorship in the Humanities, ELIZABETH SARGENT NOEL, wife of the late trust estate, totaling over from 1943 to 1986 the Danily and Laura Louise Bell Scholarship Francis W. Noel, EDD ’54, left combined gifts $250,000, to the Mary V. Sunseri Fellowship Fund for undergraduate financial aid, and the Bell totaling $573,164 through her interest in Fund for the support of graduate students in Family Stanford University Fund providing fellow- Stanford’s Pooled Income Fund, as well as a mathematics, and to the Leo F. Sunseri Men’s ships for graduate students in the School of portion of the residue of her estate through Basketball Scholarship Fund in the Department Humanities and Sciences, with a preference for her living trust, to the Noel Scholarship Fund, of Athletics. those in the history department. which supports students enrolled in the School NANCY BELCHER WATSON, ’47, gave 10 per- DONN CARLSMITH, ’50, designated Stanford of Education.