Below are some real-life examples of how Northeastern
donors have made planned gifts.
| • | Charitable Remainder Trust |
| • | Charitable Gift Annuity |
| • | Deferred Charitable Gift Annuity |
| • | Bequest |
| • | Planned Gift of Retirement Assets |
Charitable Remainder Trust
Irving
Levine, E ’57, is the classic American success story. He ventured
out west in 1961 with $100 in his pocket to try his hand in California.
With luck, hard work and drive, Levine built the flourishing Multiquip Construction Equipment Corp. in Carson, California.
He recently sold the company, which allowed Levine more time for his family and charitable endeavors. But the sale also left him with tax issues and the question of what to do with a lump sum of money.
Levine had always credited his business success to his education, and so decided to establish a charitable remainder trust benefiting Northeastern.
“This gift was the smart thing to do. It was a great solution for me, because I was able to benefit the university while avoiding capital gains tax and securing income for my family all at the same time,” says Levine.
“This gift is an expression of my thanks and respect for Northeastern. But the real advantage is that it will help educate young minds — there’s nothing more important than that.”
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Charitable Gift Annuity
“If
we can do it, so can you,” say Bill and Louise Collins, (E
'56, LA '56) . With a little imagination, they were able to make
a meaningful gift to Northeastern University.
“We first met at Northeastern, and the University has always played an important role in our lives,” says Bill. “When we saw others of our generation giving back, we were inspired to express our appreciation as well; that’s why we set up a charitable gift annuity. The bonus is that it will provide us income well into the future.”
“We realized that you don’t have to be the wealthiest person to make a real difference in the future of an institution,” explains Louise. “It is a great source of pride to know that we are doing just that — making a difference for Northeastern University. And all it took was a little imagination."
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Deferred Charitable Gift Annuity
Boston
trusts and estate attorney Janet M. Smith, L’79, often sees
baby boomer clients with a particular problem.
“They’ve realized terrific gains through investments and face stiff capital gains tax. They don’t need income now, but will in retirement,” says Smith.
“I often advise them to set up a deferred gift annuity, which provides a tax deduction now and income in retirement.”
Smith makes this recommendation from her personal experience. She and her husband set up a deferred gift annuity with Northeastern to benefit the Law School. They transferred appreciated stock to create a fund that will generate fixed payments when they retire.
“Northeastern prepared me professionally and gave me a competitive edge. This is a great way of thanking the university. It let me make a gift I could afford, knowing it will also provide income when I need it,” notes Smith.
“I encourage more mid-career professionals to explore this option. It’s a way of helping Northeastern and building a sound financial plan for the future.”
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Bequest
“Investing
in a Northeastern education as a student was one of the most important
decisions of my life,” says Paul Hirtle, E '56.
Not only did Northeastern prepare him for a successful professional career with Sylvania, Polaroid, and GTE, but he also met his late wife, Joanne, while on co-op.
In gratitude, Hirtle plans to leave the majority of his estate to Northeastern. His bequest will one day establish two endowed funds in mechanical engineering — for scholarships, equipment, and research — creating a lasting legacy to his generosity.
“Through this bequest, I am able to help ensure the future of the University and its students. That, to me, is incredibly rewarding,” says Hirtle.
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Planned Gift of
Retirement Assets
Donald
J. Kramer, BA ’59, graduated from Northeastern University
with the belief he was well prepared.
“I always felt I knew more than people I was up against,” he quips.
After managing and selling a series of small technology companies, Kramer became a venture capitalist and served on multiple corporate boards.
Kramer’s professional success luckily provided him with substantial
retirement assets. After reviewing his financial situation, Kramer decided
to designate Northeastern as the beneficiary of one of his retirement
accounts.
“I had accumulated assets in a tax-free sheltered account and expected it would provide for my family. But I learned the government would take 70 percent once I died because of double taxation — you have to pay income tax, plus a hefty estate tax.”
“By creating a planned gift at Northeastern, I avoid the double tax and put the funds to good use to help the university at minimal cost to me. It’s win-win-win,” declares Kramer. “It’s effective retirement planning, and lets me give back to the school that launched me.”
Designating Northeastern as the ultimate beneficiary of your retirement assets can be a tax efficient way to support the University.
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