PYR MID. New members LETTER FROM THE DIRECTOR A CELEBRATION OF PHILANTHROPY. What an exciting day we had!

Transcription

1

2 New members PYRAMID Legacy Society Mr. and Mrs. Albert A. Augustus Ralph E. Criswell Mildred H. Danch Mr. and Mrs. Eliot Gelb Richard and Cynthia Hassall Dorothea Jean Hassler Tim Hinesman Burritt S. and Joanne W. Hubbard, Jr. Edward B. Kraft Mr. and Mrs. Walter E. Kuhfeld Dr. Joan P. Lambros Daniel J. Lynch and Jayne McCarthy Lynch Dr. Murray A. Lytel and Gerri Lee Cole Lytel Mark A. and Deborah M. Miller A. Malachi Mixon, III Bernard E. Rand Salvatore and Barbara L. Randazzo Emma E. Randleman W. Neil and Polly Rossborough James J. and Chase C. Roth, Sr. Lee G. and Jane H. Seidman D.L. Vandervort Do your estate plans include The Cleveland Clinic? E V E R Y G I F T M A K E S A D I F F E R E N C E. Call the PYRAMID Legacy Society at 216/ Office of Development/UA Euclid Avenue, Cleveland, OH PYR MID V O L U M E 1 3 I S S U E 2 Anne Brindza, Editor Elizabeth Lear, Managing Editor LETTER FROM THE DIRECTOR What an exciting day we had! I m pleased to share with you that this year s 2005 Partners in Philanthropy Celebration was a great success. We were thrilled that so many Cleveland Clinic friends and staff were in attendance. One of the many highlights of the day was special recognition of all PYRAMID Legacy Society members, including a warm welcome to donors who have established endowments. We are happy to now include them as PYRAMID members, which will be a continuing reminder of the enduring impact of their legacy on the future of the Clinic. This year we were pleased to be able to extend a unique opportunity to share in the Clinic s progress. Lunch was arranged to allow donors to participate in personal conversations with physicians and researchers, letting attendees hear firsthand about breakthroughs in their own medical area of interest. The physicians with whom I spoke following the event also were grateful for this opportunity and thoroughly enjoyed the day s festivities. I think we can all draw inspiration from PYRAMID member Josephine Haywood, who was presented with the George Crile, Sr. Award at the event. Jo was an excellent choice to receive the award this year. She personifies the spirit of all our PYRAMID members with her contributions of time and talent. As well as establishing several forms of charitable planned gifts, she volunteers at The Cleveland Clinic Children s Hospital for Rehabilitation. Jo shared touching details and expressed the great fulfillment she has experienced while spending time with children in need of her warmth and caring. The feelings of the day were best summarized by Jo: I m honored by this award, but am only a representative of all those who, like me, want to give back to the Clinic for the care we ve received, and to help the Clinic continue helping others." I hope all of you will be able to join us next year so we can share with you what your philanthropy enables the Clinic to accomplish! Nelson J. Wittenmyer, Jr., Esq. Executive Director of Gift Planning Non-Profit Org. U.S. Postage PAID Cleveland, Ohio Permit No PYR MID More than 430 Cleveland Clinic supporters, friends and staff celebrated their partnership during the 2005 Partners in Philanthropy Celebration July 20 at the InterContinental Hotel and MBNA Conference Center. The entire day s events spoke to the importance of philanthropy for the not-for-profit Clinic s mission and future progress. Robert Kay, M.D., Chief of Staff, offered a warm welcome and thank you to all attending friends and supporters. He recognized the members of the PYRAMID Legacy Society for their thoughtful gift planning. He also honored all chair holders and, as new members of PYRAMID, those who have endowed the chairs. One of the reasons we re here is because of your support. Not just financially but emotionally and spiritually. And we want to thank you for that. You should feel pride in all the accomplishments here, Dr. Kay told the Clinic supporters. FALL 2005 Ideas on financial, estate and gift planning for friends of The Cleveland Clinic. A CELEBRATION OF PHILANTHROPY T H E PA R T N E R S I N P H I L A N T H R O P Y C E L E B R AT I O N H O N O R E D C L E V E L A N D C L I N I C S U P P O R T E R S (see page 2) George Crile, III (left) presented the George Crile, Sr. Award to PYRAMID member Josephine Haywood (right) at the 2005 Partners in Philanthropy Celebration. PYRAMID is published by the Office of Development for friends and supporters of The Cleveland Clinic. Its purpose is to identify opportunities that may be helpful in your charitable giving as well as your tax and financial planning. Please consult your professional advisors as to the applicability of any item to your situation. The Cleveland Clinic Foundation, founded in 1921, integrates clinical and hospital care with research and education in a private, not-for-profit group practice. The Clinic depends on the generosity of individuals, families, corporations and foundations to ensure its continued excellence in patient care, medical research and education. INSIDE THIS ISSUE A Celebration of Philanthropy Crile Award presented to Jo Haywood Gift Planning: A Cleveland Clinic Tradition Q&A: Answers to Questions from Our Readers Complimentary Booklet: Ways to Give The PYRAMID Legacy Society: Letter from the Director New PYRAMID Legacy Society Members 2005 The Cleveland Clinic Foundation

3 (continued from page 1) As part of the day s events, attendees enjoyed a State of the Clinic address by Delos M. Cosgrove, M.D., Chief Executive Officer and President, which covered operations trends and new initiatives, such as the Cleveland Clinic Lerner College of Medicine of Case Western Reserve University. He discussed capital expansion projects, including the new Cleveland Clinic Heart Center and an adjacent building that will house the Cleveland Clinic Glickman Urological Institute. During lunch, attendees were seated with physicians and researchers and had the opportunity to personally join in discussions with field leaders covering the attendees' chosen health topics, such as cardiology, ophthalmology and oncology. As lunch concluded, George Crile, III, grandson of the Clinic co-founder, presented the George Crile, Sr. Award to Josephine Haywood. This annual award honors a PYRAMID Legacy Society member for his or her extraordinary service, commitment and contributions of Two years from now the campus will look substantially different, something worthy of the type of medicine that is practiced in it, Dr. Cosgrove said. It s an amazing transformation from when I came here 30 years ago and something that I m proud of. And I think all of you will be too. presented to And PYRAMID member Jan Widiger remarked, Dr. Cosgrove offered more details in his State of the Clinic than I was aware of. JO HAYWOOD Next, a multimedia presentation Innovations The Future of Health Care by Joseph F. Hahn, M.D., Chairman, CCF Innovations, gave attendees glimpses into the creative minds of medical inventors and perspective on how the Clinic actively nurtures innovation to speed successful devices and therapies to market. Top: Bruce Trapp, Ph.D., participates in lunchtime discussion with attendees. Center: Dr. Cosgrove shares plans for the future at the MBNA Conference Center. Bottom Left: PYRAMID member Evelyn Brown Bottom Right: Joseph F. Hahn, M.D. It was a pleasure for us to participate in the Partners in Philanthropy Celebration. The format and information on the programs given by Dr. Cosgrove and others gave us all a better understanding of where the money goes and the good that it does. Chuck Sted Left: An attendee engages in conversation with Delos M. Cosgrove, M.D., Chief Executive Officer and President. Right: Chuck and Marilyn Sted 2 Overall, the day was one of sharing and partnership. The Clinic physicians conveyed their gratitude to generous supporters by sharing current accomplishments as well as visions of future medical advancements. At day s end, friends and supporters departed with a greater understanding of the impact of their giving. CRILE AWARD After the presentation, PYRAMID member Charles Clark commented, The building program under way is truly impressive. It amazes me, the new things that are going on, said William McPeek, a PYRAMID member who has benefited personally from a medical device invented by Dr. Cosgrove. time, talent and resources. Mrs. Haywood has supported the Clinic with various charitable planned gifts as well as spending her time as a volunteer at The Cleveland Clinic Children s Hospital for Rehabilitation. With the warm smile that has comforted countless hospitalized children, Josephine Haywood graciously accepted the 2005 George Crile, Sr. Award at the Partners in Philanthropy Celebration. This energetic 90-year-old PYRAMID Legacy Society member has given the precious gift of herself as a popular volunteer at The Cleveland Clinic Children s Hospital for Rehabilitation. Whether she is sharing a book, a smile or a game of patty-cake, Mrs. Haywood brightens the days of young patients. It was her membership in the PYRAMID Legacy Society that brought her to this rewarding experience, which in turn helped solidify the focus of her philanthropic legacy. Mrs. Haywood knew she wanted her and her late husband Harry s legacy to benefit Cleveland-area children but was not sure how. Then, already a PYRAMID member after establishing several gift annuities with the Clinic in memory of her husband, she attended The Cleveland Clinic s 2002 PYRAMID Day and toured the Children s Hospital for Rehabilitation. Impressed with what she saw, Mrs. Haywood signed on as a volunteer and later as a leading supporter. It was the inspiration I was looking for, she said. It has been one of the most rewarding experiences of my life. Through volunteering, she became familiar with children at the hospital and specifically those of the Cleveland Clinic Center for Autism. Mrs. Haywood ultimately selected the Center for Autism as her major estate designation and legacy to benefit future generations of Cleveland children. The Haywoods planned gift will contribute to the highest priority of the Center. Before journalist and author George Crile, III, presented Mrs. Haywood with the award named for his grandfather and Clinic co-founder George Crile, he said, Jo has not only given so generously of her own resources but also of her spirit of volunteerism. Upon acceptance, Mrs. Haywood responded, The Clinic is a wonderful place for people in need, and we are so fortunate to have it in our backyard. It has been a pleasure to support The Cleveland Clinic with my philanthropic dollars and time. 3

4 GIFT PLANNING A CLEVELAND CLINIC TRADITION Each year, thousands of people contribute time, money and talent to America s charitable organizations, including The Cleveland Clinic. Their inspiration may be an expression of gratitude for a service well performed, demonstration of deep-felt humanitarian concerns or an attempt to preserve the memory of a loved one. This outpouring of private philanthropy is the foundation of every charitable endeavor. A P P R E C I AT E D S E C U R I T I E S R E A L E S TAT E An alternative to a gift of cash or property deserving careful consideration is a gift of appreciated securities that you have owned for more than one year. Substantially greater tax benefits result because you $3,300. If you paid $3,000 for the stock you are con- Personal residences, farms, vacation homes and commercial and rental property are often the subject of gifts. Like gifts of long-term, appreciated securities, gifts of real estate can be attractive because of the double tax benefit an immediate charitable deduction and the avoidance of capital-gain tax. However, family considerations do not always permit the making of an outright gift of a personal residence or farm. Instead, you may want to consider a gift of a remainder interest in such property. Even though you will retain the right to possess and enjoy the property for as long as you (and your spouse) live, you ll obtain a current income-tax deduction for the tributing and owned it for more than 12 months, you will present value of our remainder interest. avoid capital-gain taxation. gift example If you are in the 33% tax bracket and contribute $10,000 worth of long-term appreciated stock to The Cleveland Clinic, you will realize an actual income-tax savings of also avoid a capital-gain tax of $1,050 (15% of $7,000). Thus, the actual cost of a $10,000 gift of long-term appre- LIFE INSURANCE ciated securities can be reduced to only $5,650 ($10,000 One frequently overlooked asset is life insurance. If the original need for which a policy was purchased no longer exists, a gift of the policy can be very Considering today s economy and the increased complexity and scope of our nation s tax structure, the judicious planning of one s charitable gifts is vital. The need for planning is twofold: first, to ensure that the gift will be put to the best possible use; and second, to ensure that the gift best fits your financial needs and objectives. CASH less income-tax savings of $3,300 less capital-gain tax savings of $1,050). There are different types of gifts, as well as different ways to give. The following pages highlight examples of each, along with their inherent tax A gift of cash is the simplest and most direct way to contribute to charity. You may designate your gift for a specific purpose, or you may choose to leave your gift undesignated to benefit the area of greatest need. The out-of-pocket cost of a cash gift is less than the dollar amount of the gift because of the charitable income-tax deduction. benefits. TYPES OF GIFTS The type of asset you donate and the way you transfer it to the Clinic will determine the tax and financial benefits resulting from your gift; certain kinds of gifts may be more advantageous than others from these standpoints. You have the option of choosing a plan that will secure maximum benefits for you and your situation. gift example rewarding, particularly if it is fully paid up. ALICE KRUSE Initiating an endowed fund with a gift of stock let me EDWARD BR ANDON A person in the 28% tax bracket can make a con- create a fitting tribute to my husband, who taught Gifting life insurance is a very creative and easy tribution of $1,000 at an actual cost of only $720. many physical therapy students during his career way to leverage a usually unrealized asset that we all as Director of the Frank E. Bunts Educational have, the insurable value of our lives. For me, it was Institute, simply a marvelous way to do something positive for The charitable income-tax deduction is $280. TA N G I B L E P E R S O N A L P R O P E R T Y Antiques, rare books, prized collections and works of art are some of the items of personal property contributed to charity. As long as the property you donate to us is related to the purpose of the Clinic, you may deduct its full which was staffed by Cleveland Clinic faculty. The Robert D. Kruse Memorial The Cleveland Clinic. Scholarship Fund for Allied Health Professionals will provide scholarships to promising allied health students from a variety of fields. fair-market value. 4 5

5 WAYS TO GIVE L I F E I N C O M E P L A N S Basically, a life-income gift plan with the Clinic is an arrangement under which you make a gift of cash or property (stocks, bonds, real estate) in exchange for a stream of income for life: You transfer an asset but reserve the right to receive payments from the asset. There are several benefits from this type of gift arrangement: A stream of income for life, to more than one beneficiary if you wish A charitable income-tax deduction in the year you make the gift A charitable estate-tax deduction for a portion of the gift A gift that will benefit the Clinic in the future. Life-income gifts may be made in the form of gift annuities or trusts. G I F T A N N U I T I E S The gift annuity is perhaps the simplest and most popular charitable life-income arrangement. It does not require a complicated agreement, and the amount needed to fund it can be as little as $5,000. Basically, a gift annuity is a contract between the donor and the charity. In exchange for a gift of cash or marketable securities, fixed payments are guaranteed to the beneficiary(ies) for life. ELIZABETH HOLAN I started supporting The Cleveland Clinic with charitable gift annuities about a decade ago. They return so much each year while also supporting the Clinic. I have found that gift annuities are an excellent way to thank the Clinic for the kind, superlative care that my husband received throughout the years. G I F T S I N T R U S T In its simplest terms, a trust is an arrangement under which an individual transfers legal title to property to another (the trustee) who manages the property for the benefit of the individuals and/or organization specified in the trust agreement. Trusts that make lifetime payments to the specified beneficiaries and ultimately benefit charity are known as charitable remainder trusts. These trusts fall under two basic types: The charitable remainder unitrust The charitable remainder annuity trust The principal difference between the two types of trusts is the nature of the payments made to the beneficiaries: Payments from a unitrust vary according to the investment performance of the trust. Payments from an annuity trust are fixed when the trust is created and will not vary over the lifetimes of the beneficiaries. PLANNING POINTER: If you fund either of these trusts with long-term appreciated securities, you will receive the general benefits life-income plans plus an additional tax benefit: You will avoid capital-gain tax on the appreciation, thus preserving more of your gift to produce the payments. PLANNING POINTER: A gift annuity will generate the same benefits as other life-income plans plus an additional tax benefit: a portion of each annuity payment will not be subject to federal income tax. B E Q U E S T S ROBERT & ELEANORE RISMAN Gift planning lets us make the most of our charitable donations. Establishing a charitable remainder unitrust with The Cleveland Clinic, for instance, has allowed us to show our support for the organization and, at the same time, receive income from the invested funds and continue to benefit from market upturns. We feel so fortunate to have a worldrenowned medical institution here in Cleveland. It simply must be supported. Any of a number of various types of bequests may be used by individuals to memorialize their philanthropic interests. The choice depends on each person s unique circumstances and personal and financial objectives. A specific bequest identifies particular assets, while a percentage bequest expresses the gift as a percentage of the total estate, regardless of size. It is also possible to make a gift of what is left after taxes, debts, expenses and other bequests have been satisfied (a residual bequest). In addition to the personal satisfaction of making a philanthropic bequest, there are definite federal estate-tax benefits. A charitable estate-tax deduction is allowed for the full value of the gift. You should consult your attorney about the applicability to your own situation of the legal principles contained herein. Q and A ANSWERS TO QUESTIONS FROM OUR READERS What information do I need to include in my will to ensure that my bequest wishes are honored? If you are considering provisions for The Cleveland Clinic in your will, we recommend the following sample bequest language: I bequeath to The Cleveland Clinic Foundation, Cleveland, Ohio, [insert dollar amount, percentage of estate or description of property] to be used for its exempt purposes. Your estate gift will be distributed per your expressed wishes. However, if you prefer to leave your gift unrestricted, it will provide the Clinic with flexibility to direct it to the area of greatest need, to enable us to achieve our goals and carry out our mission. Please feel free to contact our Gift Planning Department for specific bequest language at 216/ COMPLIMENTARY BOOKLET: WAYS TO GIVE If you would like more information on how you can make a gift through any of the gift opportunities mentioned in this issue, please return the enclosed card to receive the booklet, Ways to Give.We would be delighted to provide you with additional information for selecting the gift method that best suits your individual objectives. Alternately, for more information about how you can make a gift to The Cleveland Clinic, please call our Gift Planning Department at 216/ , or brindza@ccf.org. 6 7