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INSIGHTSINSIGHTSA C H A R I T A B L E P L A N N I N G G U I D E F O R I S U A L U M N I A N D F R I E N D S

FALL 2009

I O W A S T A T E U N I V E R S I T Y F O U N D A T I O N

OBSERVING DEPARTMENTAL NEEDS FIRSTHAND

s a longtime faculty member in the College

of Engineering, Howard Johnson saw firsthand the need for newfacilities and programmatic support in his home department of agriculture and biosystemsengineering.

So it was not difficult for Howard

and his wife, Pat, to choose to

support the department with their

philanthropy. “We both have degrees

from Iowa State and strong ties to the

university,” Howard says. “Our gift

goes to the department. I worked

there a long time and daily saw the

need for additional support. We

always wanted to assist the department.”

The Johnsons have established a

charitable gift annuity for teaching

facilities and equipment in the department

of agriculture and biosystems engineering.

A gift annuity is a contractual

agreement between a donor or donors

and the Iowa State University Foundation

in which assets are transferred in

exchange for a lifetime annuity, to be

paid back to the donor(s). The donor(s)

receives an immediate charitable income

tax deduction, with the rates based on

the age of the donor(s) at the time the

annuity is established.

“With the charitable gift annuity

we were able to get some tax

assistance, establish some

annual income and help

Iowa State at the

same time.

—Howard Johnson

To learn how you can easily provide support for future ISU students, go to www.foundation.iastate.edu/studentsupport

The ISU Foundation is acknowledged by Iowa State University as the preferred channel for administering trust and estate gifts that benefit the university. This is accomplished by using the name Iowa State University Foundation in your legal documents. Please contact the foundation for additional information.

MEET THE STAFFIowa State University Office of Gift Planning

Lynda JacobsonAssistant Vice President of Development

Lynda joined the ISU Foundation

in August 1999 and is responsible

for the organization’s gift planning

efforts. Lynda is a frequent presenter

at professional conferences on gift

planning. She holds bachelor’s and

master’s degrees from Minnesota State University, Mankato, and

worked in her alma mater’s foundation office for a number of

years, including as director of planned giving.

Paul CaspersenExecutive Director of Development

Paul came to the ISU Foundation in

spring 2009 after serving as a wealth

management advisor and managing

principal of the Ames office of

TIAA-CREF. Paul has also previously

worked in the financial sector with

Wells Fargo Private Client Services,

Edward Jones Investments, Van Kampen Investments, and Olde

Discount Stockbrockers. A certified financial planner, Paul is a

graduate of the University of Northern Iowa.

Gregg HindersAdministrative Coordinator

A graduate of Central College in Pella,

Iowa, Gregg is a native Iowan with

professional experience as a personal

banker/consumer lender with First

State Bank and Iowa State Bank, both

in Parkersburg, Iowa. Gregg joined the

ISU Foundation in 2008.

Kathy TeigDevelopment Assistant

Kathy became a member of the

ISU Foundation staff in the spring

of 2009. Kathy has worked as an

administrative assistant to the

president and personnel officer

with Wartburg Theological Seminary

in Dubuque, Iowa; as an office

manager/case aide for Catholic Social Services in Marinette, Wis.;

and as a claims examiner with The Principal Financial Group.

IOWA STATE UNIVERSITY FOUNDATION

2505 UNIVERSITY BOULEVARD

P.O.BOX 2230AMES, IOWA 50010-2230TOLL-FREE: 800.621.8515www.isugift.org

Share the following suggested wording with your estate planning attorney to add to your will or living trust.

I give, devise and bequeath to the Iowa State University

Foundation, a not-for-profit corporation, existing under

the laws of the State of Iowa, and located at Ames, Iowa,

______ (percent of my estate, dollars, property, securities,

etc.) to be used for ______ (however you wish for your

gift to be used) at Iowa State University.

>> HOW TO REMEMBER IOWA STATEUNIVERSITY IN YOUR WILL

OUR MISSION

Iowa State University works

to create, share and apply

knowledge to make Iowa and

the world a better place. The

Iowa State University Foundation

is a private non-profit organization

dedicated to securing and stewarding

private gifts and grants that benefit

Iowa State University. Each year,

thousands of generous benefactors

make gifts to show their

support for Iowa State.

ACTION LIST 3 WAYS TO LEARN MORE TODAY

Remembering the Iowa State

University Foundation in your will

is the most enduring statement

you can make about your belief

in our mission. The support you

have offered throughout your

lifetime can go on for years

to come.

HOW IT WORKSTo make a charitable

bequest, you need a

current will or revocable

living trust. Your gift can be made

as either a specific bequest or as a

percentage of your estate. Through

a specific bequest, you give a certain

amount of cash, securities or property.

Most people, however, do not know

what the exact size of their estate will

be at their death. Therefore, making a

gift by using a percentage amount can

be a more desirable way to divide your

estate—allowing you to give in the

correct proportions to family, friends

and the organizations you hold dear.

SIMPLE, YET POWERFULRemember ISU in Your Will

Return the reply card to receive your free guide, and make sure your will is the best it can be.

Visit us online at www.isugift.org to learn more about supporting the future of Iowa State University.

Contact our staff with questions or comments about anything covered in this publication. We’re happy to help, at no obligation. (800.621.8515)

Continued inside

Contact us to learn more about this simple, powerful way to support Iowa State in the future.>>

”IN THIS ISSUE• Tidying Up Your Year-End

Giving Plans

• 4 Easy Steps to Creating A Charitable Gift Annuity

• Simple, Yet Powerful:Remember ISU in Your Will

• Meet the Staff: Iowa StateUniversity Office of Gift Planning

©2009 Iowa State University Foundation and The Stelter CompanyThe information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited inexamples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxesonly. Individual state taxes and/or state law may impact your results.

hile it’s always wise to thinkof ways to preserve yourwealth, you can look at the

end of the year as an opportune time tobe tax-savvy with your finances.

DECIDE HOW YOU WOULD LIKE THE ISU FOUNDATION TO USE YOUR GIFTNow is the time to make sure you have

a plan in place to protect your wealth

with valuable and often overlooked tax

deductions. Making these moves now can

help save you from an unnecessary tax

bite in 2009.

Start by estimating how much income

you expect to earn by the end of 2009.

Knowing this information can help you

decide how much you may want to give

to favorite causes, resulting in reduced

income taxes.

TIDYING UP YOUR YEAR-END GIVING PLANSSmall Moves That Can Pay Off

Following are a few innovative year-end

giving ideas that can reduce your potential

tax hit or even boost your income this year

while getting a tax break.

GIVING AND RECEIVINGWhen you support Iowa State University,

you not only make a difference in the lives

of students, faculty and staff, but you also

receive a tax deduction. You can usually

itemize and write off the amount you’re

donating, resulting in lower taxable income.

If you are unsure whether your gift is tax-

deductible, you can always check with us.

GETTING INCOME FROM YOUR GIFTWhether you’re still working or retired, you

may decide after assessing your finances that

you need more income. Consider setting up

a life income gift to benefit a charitable

organization such as the ISU Foundation.

In exchange for your gift of cash or

securities, or possibly real estate, you (or

a beneficiary you designate) receive

income for life. Plus, you get a partial

charitable tax deduction the year you

make the gift. Once the payment

period ends — or you or your

beneficiary passes on — the

remaining assets go to Iowa State.

USING TAX-SMARTSTRATEGIES TO MAKE GIFTSConsider donating appreciated

property instead of cash. If you

donate property you have owned for more

than a year, the amount you can write off is

the asset’s value on the day you make the

gift. So if the property has increased in value

while you’ve owned it, you won’t owe tax

on its appreciation.

If the property’s value is now below

your original purchase price, you could

sell to take a capital loss as allowed by law,

thus reducing your taxable income. Then

donate the cash to Iowa State. Both cases are

win-win situations — you help the university

while smartly managing your taxes.

CONTACT US TO LEARN MORE.

GIFT IMPACTCharitable Remainder Trust“Receiving the Eldred and Donna

Harman Scholarship has providedme with financial security and academic confidence as I completemy final year at Iowa State. Thisscholarship has allowed me to surpass my academic limits andgiven me the ability to propel myfuture goals and expectations.”

Justine HoschCascade, IowaSenior, Animal Science MajorRecipient of the Eldred J. and DonnaHarman Scholarship

CHARITABLE REMAINDER TRUSTA charitable trust to benefit Iowa Stateis established when you transfer assetssuch as cash, securities or real estate toa trust where the assets are invested topay an annual, lifetime or term-of-yearsincome to you or other beneficiaries.When the trust matures, the remainingtrust assets are distributed by thetrustee according to your wishes.

THERE ARE MANYWAYS TO GIVE

To learn about the many types of gifts you canmake to supportIowa StateUniversity andtheir benefits to you, contact the Iowa StateUniversityFoundation today!

4 EASY STEPS TO CREATING A CHARITABLE GIFT ANNUITYEstablishing a charitable gift annuity is smart, rewarding…and simple! In just four steps, you can create a gift that will provide for your future as well as ours.

THANK YOU!

It is through your

generosity that we

can make a

difference in the

lives of students.

For a personal illustration of how a CGA could benefit you, call the Iowa State University Foundation today.

FINALIZE YOUR CHARITABLE GOALS

Think about your goals and

desires for our future and then

determine what you wish to

support. You may either restrict

your gift to benefit a particular

program or leave the gift

unrestricted, allowing the

university to use your gift for

our most pressing needs.

DETERMINE WHICH ASSET TO DONATE

You can fund your gift annuity

with cash, stocks or bonds.

When making your decision,

consider the asset’s fair market

value and cost basis. Also,

compare the asset’s income to

the proposed gift annuity

payments (call us for rates based

on your age).

STATE WHO SHOULDRECEIVE THE

PAYMENTSGift annuities make lifetime

payments you can never

outlive. You can also provide

payments for another

individual—typically your

spouse, but could also be a

parent, child, family member

or friend.

DECIDE YOUR PAYMENT DATE

Your payments may begin

immediately, or you may defer

them into the future. Deferring

your payments benefits you by

increasing your annual payout

as well as your income tax

deduction. You must also

decide how you want to

receive your payments.

2 31 4

According to the Johnsons, the charitable

gift annuity was a good fit for their

philanthropic endeavors. “With the

charitable gift annuity we were able to

get some tax assistance, establish some

annual income and help Iowa State at

the same time,” Howard says.

Howard’s professional life revolved

around his career at Iowa State. He

earned bachelor’s (’49), master’s (’50) and

doctoral (’59) degrees from the university,

as well as a master’s from the University of

Iowa in 1954.During his graduate studies,

he worked in the department in a variety

of positions before joining the faculty in

1959, where he remained until retiring in

1988 as an Anson Marston Distinguished

Professor of Engineering.

His involvement with the department

and Iowa State didn’t conclude with his

retirement. In 2005, he

published Agricultural

Engineering Century:

Iowa State University,

a historical look at

the department.

Pat is a 1952

family and consumer

sciences graduate of Iowa

State and was employed as an instructor

in that department. She has volunteered

on many community service committees

in Ames and served as finance advisor

for her college sorority, Alpha

Gamma Delta.

Their children are Iowa State

graduates: Cynthia in English and

journalism ’76, Lynette in botany ’77

and Malcolm in civil engineering ’82.

GIVE A MEANINGFUL GIFTYou have worked hard to accumulate assets throughout your life. When you create a will, you have the ability to determine how your assets are distributed at death. To learn how to make a meaningful gift and save specific assets, send for our complimentary guide, Make Your Final Wishes Come True,by completing and returning the enclosed reply card.

Continued from cover

>>TIME IS RUNNING OUTIf you’re 701/2 or older, you can make tax-free gifts of up to$100,000 directly from your IRA to qualified charities like theISU Foundation. But don’t wait long — this opportunityexpires Dec. 31, 2009. Contact us to learn more.

JUSTINE HOSCH

bite in 2009.

income taxes.

THANK YOU!

It is through your

generosity that we

can make a

difference in the

lives of students.

on your age).

or friend.

2 31 4

the department.

Pat is a 1952

family and consumer

Gamma Delta.

JUSTINE HOSCH

bite in 2009.

income taxes.

THANK YOU!

It is through your

generosity that we

can make a

difference in the

lives of students.

on your age).

or friend.

2 31 4

the department.

Pat is a 1952

family and consumer

Gamma Delta.

JUSTINE HOSCH

FALL 2009

Iowa State at the

same time.

—Howard Johnson

OUR MISSION

to come.

bequest, you need a

Continued inside

Giving Plans

FALL 2009

Iowa State at the

same time.

—Howard Johnson

OUR MISSION

to come.

bequest, you need a

Continued inside

Giving Plans

document

Documents

iowa state bank

degreesfrom iowa state

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university of northern

n d f r i e n d sfall

minnesota state university

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isu foundation staff