BROOKINGS PARTNERS YEAR-END GIFT PLANNING GUIDE. Dr. Ann Johanson Going the Distance for Students RECOGNIZING THE IMPORTANCE OF PLANNED GIFTS

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1 BROOKINGS PARTNERS RECOGNIZING THE IMPORTANCE OF PLANNED GIFTS FALL 2015 YEAR-END GIFT PLANNING GUIDE Dr. Ann Johanson Going the Distance for Students

2 YEAR-END GIFT PLANNING GUIDE The following quick reference guide provides important information and deadlines for year-end charitable giving. For assistance with year-end gifts, please contact the Office of Planned Giving at or DECEMBER 31, 2015 Date by which charitable contributions must be completed to qualify for a 2015 charitable income tax deduction. Checks must be postmarked no later than December 31, Electronic or wire transfers of securities or cash must be received into the Washington University account by December 31. If you are contributing securities that are held in certificate form, please contact the Office of Planned Giving for instructions. Credit Card Charges must be incurred by December Reasons to Establish a Charitable Gift Annuity before Year End charitable income tax deductions 2 Attractive lifetime payments 3 Partial tax-free payments 4 Capital gain tax savings when you use appreciated securities to fund your gift 5 Support for the purpose you designate at Washington University when payments end Gift Annuity Sample Payment Rates* ONE LIFE AGE FIXED RATE % % % % % % % *Rates are subject to change. TWO LIVES AGES FIXED RATE 60 & % 65 & % 70 & % 75 & % 80 & % 85 & % 90 & % GIFTS.WUSTL.EDU/GIFTFORM.ASPX The new online gift form provides a quick and easy way to make a gift. page 6

3 An Exceptional Game Changer DR. ANN JOHANSON AB 56 IS THE CONSUMMATE TEAM PLAYER. An accomplished athlete, she lettered in varsity basketball, softball, volleyball and field hockey as a premedical student at Washington University. Team sports helped me to build leadership and communication skills that have been beneficial throughout my life, she says. In addition to the rigors of the pre-med curriculum, she recalls the daily sprints from Francis Field House to the quad. We had ten minutes between classes, she recollects. I had to change clothes and run to physics class at the opposite end of campus. I m amazed at how often I was able to make it on time, she says with disbelief. After graduation, Ann taught physical education at Mary Institute in St. Louis and then earned her medical degree from the University of Missouri Columbia. She completed her residency at St. Louis Children s Hospital and a fellowship at Johns Hopkins Medical School. Then she accepted a professorship at the University of Virginia where she became the first female full professor in pediatrics and developed a pediatric endocrinology division at the University of Virginia Medical Center. In 1983, Genentech, a California-based biotechnology firm, hired Ann as the first physician in their endocrine clinical research department. She continued to break ground for women in the field when she became the first female endocrinology director at the company. Among her many outstanding achievements during her 20-year tenure at Genentech was the development and clinical use of synthetic recombinant human growth hormone (rhgh), which significantly improves the lives of children deficient in growth hormone. Her modesty is apparent as she discusses her accomplishments, emphasizing collaboration and acknowledging the contributions of colleagues. Since retiring, Ann has moved back to St. Louis. As a volunteer for Washington University, she is active with the Eliot Society and her class reunion, and she is looking forward to celebrating her 60th reunion in the spring. In 2013, she received a Distinguished Alumni Award from the College of Arts & Sciences for her outstanding career contributions and groundbreaking achievements in pediatric endocrinology. A longstanding supporter of the university, Ann is particularly passionate about supporting scholarships. She has established several charitable gift annuities and has named Washington University as a beneficiary of her IRA. These gifts will endow the Ann J. Johanson Scholarship Fund to benefit premedical students in Arts & Sciences. Reflecting on her motivation to support scholarships through her planned gifts, Ann says, I have been so very blessed by many gifts I didn t earn or may not have deserved and that so many in in our society haven t received. Therefore I feel obligated to share some of my good fortune with others for their benefit.

4 College of Arts & Sciences Campaign Priorities Planned gifts are an important source of support for the College of Arts & Sciences and Leading Together: The Campaign for Washington University. Consider how you can combine a planned gift with your current gifts to support the College of Arts & Sciences, University College and the Graduate School of Arts & Sciences and the goals of the Leading Together campaign. Supporting Talented Students Regardless of Financial Circumstances Undergraduate scholarships and graduate fellowships Attracting and Retaining Top Faculty Endowed professorships and research support Creating and Strengthening Intellectual Centers of Faculty Excellence Interdisciplinary centers focusing on the university-wide priorities of diversity, community and culture and global health and the environment Enhancing the Teaching and Learning Environment Improved facilities and state-of-theart laboratory and research space for the humanities, social sciences and natural sciences page 2

5 Tax-Wise Giving: Maximize Charitable Tax Deductions and the Value of Your Gift Giving long-term appreciated assets to the university is one of the most tax-efficient ways to give because you may claim a charitable income tax deduction based on the property s full fair-market value and usually deduct more than you paid for the asset. You do not pay capital gain tax on the appreciation of the asset when the property is sold by the university. Property is considered long-term when you have held it for more than one year. While publicly traded securities and real estate are among the most commonly contributed assets, privately held securities, artwork and rare collections are a few of the many appreciated assets that may be used to make your gift. Publicly traded Securities Publicly traded securities may be used to make an outright gift or to establish a charitable life income plan, such as a charitable gift annuity or unitrust to supplement your income. Giving appreciated stocks, bonds or mutual funds that you have held for more than one year allows you to claim a charitable tax deduction based on the gift s full fair-market value and avoid capital gain tax on the appreciation of the securities. Closely Held or Privately Held Securities If you are selling a business and would like to support the university, you may give the university closely held securities in companies that are not publicly traded. Given the complexity of closely held securities and the specific Internal Revenue Service (IRS) regulations on valuing closely held securities, it is important to consult with your financial and legal advisers and the Office of Planned Giving before making your gift. If you are able to contribute your closely held securities to the university, you may deduct the fair market value of your gift and avoid capital gain tax; however, the IRS will require an appraisal from a qualified appraiser to substantiate your deduction. Real Estate Gifts of real estate, such as a primary residence, second home, commercial building, farm, or rental property, provide numerous tax advantages and other benefits. You may use real estate to make an outright gift or to fund a charitable remainder unitrust, which provides lifetime income to you and/or other beneficiaries. You may also donate a personal residence, continue to live in it, and get a partial tax deduction through a retained life estate. Gifts of real estate involve specific procedures including a review of the property prior to making your gift. Please contact the Office of Planned Giving for specific information on how gifts of real estate can be completed. Collections, Artwork, and other Tangible Personal Property You can donate artwork, rare books, and other collections to the university and receive a charitable income tax deduction. The University Libraries, the Mildred Lane Kemper Art Museum, or other entities will work with you to review the property to determine if it is an appropriate gift for the university. A qualified appraisal of the donated property will be required for tax purposes. For information on these and other ways to use appreciated assets to make a gift, contact the Office of Planned Giving at or or plannedgiving@wustl.edu. page 3

6 BROOKINGS PARTNERS Passion. Plan. Impact. I am interested in supporting Washington University in my will or trust. I would like a personal illustration of how a charitable gift annuity would benefit me. Use the amount checked below for my illustration: $5,000 $10,000 $25,000 $50,000 other $ FOLD IN HALF AND SEAL. PLEASE DO NOT STAPLE. My gift may be: cash securities ($ ) (cost basis) My birth date is. Please include a second individual whose birth date is. I am interested in making a gift of real estate & receiving lifetime payments. I have included Washington University in my estate plan. I wish to join the Robert S. Brookings Partners in recognition of my planned gift for the university. I am interested in designating Washington University as beneficiary of my IRA, 401K or other qualified retirement plan. Thank you for supporting Washington University! Name (Please Print) Address City/State/Zip Daytime Phone Preferred Consult with your legal or tax advisor before making a charitable gift. Tax-Free Charitable IRA Gift Update Many donors have inquired about making tax-free charitable IRA rollover gifts for The law, which expired at the end of 2014, allowed individuals ages 70½and older to make tax-free gifts totaling up to $100,000 directly from their IRA to Washington University and other qualified public charities. As of the press date, the law has not been extended. Please visit plannedgiving.wustl.edu for further updates. page 4

7 The Robert S. Brookings Partners recognizes individuals who have chosen to support Washington University through estate gifts, life income plans or other planned gifts. The generosity of these donors helps ensure the continued excellence of the university for generations to come. For information or to notify us of a gift in your will, trust or other planned gift, please contact the Office of Planned Giving at or page 5

8 BROOKINGS PARTNERS Checks, cash, securities, and credit card contributions must be completed by year end to qualify for a 2015 charitable income tax deduction. FALL 2015 Office of Planned Giving Washington University in St. Louis Campus Box 1193 One Brookings Drive St. Louis, MO Nonprofit Org. U.S. Postage PAID St. Louis, MO Permit No DECEMBER 31, 2015 Checks must be postmarked no later than December 31, If you are contributing securities that are held in certificate form, please contact the Office of Planned Giving for instructions. To make your gift online visit: gifts.wustl.edu The Office of Planned Giving is here to assist you. (800) (314) plannedgiving.wustl.edu