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IBJ Supplement Final

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Nicole Cunningham

This summary provides information about Ronald McDonald House of Indiana and how it supports families of critically ill children. It also provides a call to action for readers to support the organization through donations. Ronald McDonald House of Indiana provides housing and support for families of critically ill children who must travel to Indianapolis hospitals for medical treatment. For 23 years, it has offered these families a home away from home where they can find comfort during difficult times. The organization relies on donations to continue its mission of supporting families and keeping them close to their hospitalized children. Readers are encouraged to make a donation to help families in need.

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IBJ Supplement Final
Each year thousands of families in Indiana face the fear of having a child with a life-threatening illness or injury. Oftentimes these families must travel from the comforts of their home to Riley Hospital for Children and other Indianapolis-area hospitals for specialized medical treatment. The Ronald McDonald House® of Indiana has been providing these families with a comfortable, affordable and caring "home-away-from-home" for 23 years. With your help we can continue to provide families with a refuge from the hospital, where they can cook a meal, share a laugh, shed a tear and find comfort during difficult times. You can make a gift of love that will extend beyond your lifetime. Please contact the Ronald McDonald House® at 317-269-2247 for more information. No family should have to endure the pain of being apart from their critically ill child Ronald McDonald House® of Indiana • 435 Limestone Street • Indianapolis, Indiana • 46202-2819 www.rmh-indiana.org • 317-269-2247 - I I
LEAVE A LEGACY 3 FROM THE DIRECTOR TABLE OF CONTENTS My name is Tami Tarpley, and I am proud to serve as national director for the LEAVE A LEGACY ® public awareness campaign conducted by the National Committee on Planned Giving, an organization that serves charitable fundraisers and estate-planning professionals across the United States. I hope that in this special supplement, you will learn more about how easy it is to leave a bequest to charity, as well as other types of planned-giving options that are available to you. I also believe you will be inspired by the donor stories shared on these pages, which prove that you can make a difference in the lives that follow through a bequest -- large or small -- to the charity of your choice. Americans are a generous people, so why is a program like LEAVEA LEGACY nec- essary? While it is true that more than 80 percent of Americans contribute to charitable organizations throughout their lifetimes, research conducted in 2000 indicates that only 8 percent of people chose to continue this support through a charitable bequest. Just consider the overwhelming support Americans provided to victims of the Sept. 11, 2001, terrorist attacks or, more recently, those devastated by the Indian Ocean tsunami. If we could harness that spirit of giving and motivate just 20 percent of Americans to leave a charitable bequest, the current number of charitable bequests would more than double. Imagine the impact we could have if each of us remembered a favorite charity in our will or estate plan. Since its creation in 1994, LEAVEA LEGACY has grown from a successful, month- long media campaign designed to promote the value of bequest giving in the Columbus, Ohio, area into a unified, national movement that operates daily in more than 165 com- munities in the United States -- with an additional 24 programs in Canada. Through local LEAVE A LEGACY programs, dedicated volunteers are actively pro- moting the importance of bequest giving in partnership with charities and businesses of all sizes through the use of a nationally produced media campaign kit, special events and much more. The public response has been overwhelming, and we look forward to continued growth in the coming years. In partnership with our friends at IBJ Corp., I believe we have created a publication that is both informative and inspirational. To learn more about LEAVE A LEGACY, please visit our newly expanded national Web site at www.leavealegacy.org or call the National Committee on Planned Giving at (317) 269-6274. I thank you for your interest in making a difference in the lives that follow! Sincerely, Tami Tarpley National LEAVE A LEGACY® Director Writing a Will....................................4 Giving Love.......................................5 IRA: A Nest Egg For Retirememnt And Beyond....................................13 Star Award.....................................13 Sharing Love For Art........................8 How Much Do You Leave Your Heirs?........................................9 Joy’s House .......................................10 IRA Rollover Legislation..................11 Bequest Helps Symphony...............12 Indiana Bequest.............................13
WRITING A WILL How to broach the subject, get started ■ BY NIKKI NICHOLS For many, writing a will is an uncomfortable, even depressing, sub- ject. It forces us to confront the unsa- vory subject of death. Because facing our own mortality can be intimidating, many people die without wills. In fact, an Associated Press news story published late in 2004 reported that 42 percent of Americans do not have a last will and testament in place at the time of their deaths. If you are having a hard time build- ing yourself up psychologically to write a will, be comforted you are not alone. But also heed this warning: If you don’t have a will, you’re giving up control of a vitally important piece of your legacy: your last wishes. Wills: A public image problem It’s a plain and simple truth: Settling an estate can be a sticky situation. Many estates are settled not only with the distribution of assets but with a fair amount of family squabbling and gen- erally prickly behavior. This uncom- fortable ritual usually occurs at the height of grief, and any perceived imbalances could lead to years of fami- ly discord and emotional trauma. To save your family needless heartache and uncertainty, make sure you consult with a professional, and be sure to understand that being specific about your intentions is of critical importance when writing the will. Remember charity in your will At the core of the LEAVE A LEGA- CY® campaign is the message that we should all do our part to make a differ- ence in the lives that follow. The idea is to choose charities of your choice at whatever amount works best within your resources and make a charitable bequest to that organization. What is a bequest? A charitable bequest is simply a dis- tribution from your estate to a charita- ble organization through your last will and testament. There are different kinds of bequests. For each, you must use very specific language to indicate the precise direction of your assets and to successfully carry out your final wishes. In any charitable bequest, be sure to name the recipient accurately. A bequest to “The Cancer Society” might go to national headquarters, when you meant it to go to the affiliate in your community. Whether it’s a hospital that showed you particularly compassionate care, an animal shelter you valued, an arts organization that brought you enjoy- ment, or an educational institution that helped you with scholarships, that char- ity depends on donors. Listed here are some common types of bequests and some sample bequest language to help familiarize you with the process of writing a will. These guidelines are not meant to be a substitute for the professional advice you receive from a trained estate attor- ney or financial planner. Specific bequests Specific bequests are made when a particular item or property is bequeathed for a designated purpose. (i.e., instruments bequeathed to the local school district for use in music education; dollar funds to be used in the operation of a school or church.) Specific bequest language: “I give, devise, and bequeath to NAME OF CHARITY/LOCATION, the sum of $_______ (or a description of a specif- ic asset), for the benefit of NAME OF CHARITY to be used for the following purpose: (state the purpose). If at any time in the judgment of the trustees of NAME OF CHARITY it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative pur- pose closest to the designated purpose.” General bequests General bequests are legacies left to certain people or causes that come from the general value of the estate and are made by designating a specific dollar amount, a particular asset or a fixed percentage of your estate to the cause of your choice. See WILL page 14 4 LEAVE A LEGACY
GIVING WITH LOVE Small town janitor surprises school with $80,000 dollar gift ■ BY NIKKI NICHOLS Jack Eggers was a living snapshot of simpler times gone by. He wasn’t into frills, never subscribed to cable, didn’t drive his car much, preferred to grow his own food, and steered clear of the big city never straying far from tiny Amo, Ind., where he was born and raised. Eggers, a school janitor, preferred to live a poor man’s existence. A year after his death, however, he showed that his poor man’s life was really a façade. Eggers was saving every penny so someday after he was gone, he could do some good. He accomplished his wishes by leaving sizeable bequests to the school, church, and community he loved. Todd Crosby is the principal of Mill Creek West Elementary School in Hendricks County, the school where Eggers had worked since 1988. Crosby said Eggers lived a solitary existence at his modest, two-bedroom house, but when he showed up for work, he show- ered the students and staff with care and compassion. “The kids absolutely loved him,” Crosby fondly recalled. “Jack would give high fives to them, even though he was 6’3 and he’d have to crouch down to their level.” Crosby said when any kind of prob- lem appeared, the kids would scour the halls looking for Eggers. They respected and cared for him the same way he cared for them. Eggers was famous for remember- ing birthdays and writing short poems for students and staff. He didn’t have a family of his own, so he viewed the stu- dents, in a sense, as his very own. “That’s what’s so different between businesses and schools,” Crosby said. “It’s more of a family atmosphere. Jack was like a big daddy. He kept track of and cared for everybody.” There came a time when the favor of kindness would have to be returned. In 2003, Eggers was diagnosed with an aggressive brain tumor. Along with neighbors, school staff members and friends, Crosby -- who lost a family member to a similar condition -- helped take Eggers to his doctor’s appoint- ments in Indianapolis. Crosby said Eggers didn’t like trav- eling to the city and disliked not being able to rely solely on himself. “He knew he had to trust the doctors in what they had to do, but he didn’t like the fact that other people had to take care of him,” Crosby said. “He was used to taking care of himself, and he didn’t want a lot of attention on himself.” Eggers had surgery, but it only briefly slowed the tumor’s progress. He took a leave of absence from his janito- rial duties but later decided to retire. Even while enduring all the pain, he managed to stop by the school to visit the kids from time to time. The students and staff all received frequent updates on his progress. In winter of 2004, Eggers died at age 69. A year later, Eggers’ goodness was revealed to everyone in a most unex- pected way. The man who never bought fancy clothes or nice things had amassed a large amount in savings. When his estate was settled in early 2005, Mill Creek West Elementary School received $80,000 from Eggers’ last will and testament. “When we were told the amount it was shocking,” Crosby said. “We just found out this past winter, two weeks before the checks arrived. The school board approved the acceptance of the donations.” Eggers also left an undisclosed amount to Amo Baptist Church and another $120,000 to the Hendricks County Community Foundation. At Mill Creek West, his money will be split between a new playground and a general fund. Because it’s used by the entire community, the playground will be converted into a family friendly park with walking trails and all the latest and best playground equipment. The grounds will be named “Jack Eggers Memorial Playground.” The school library will get an update, and its crown jewel will be “Jack’s Corner,” a place full of poetry books and nice artwork to celebrate his love of writ- ing and drawing. News of Eggers’ bequests made local headlines, and Crosby knows he wouldn’t like any kind of public recognition. Eggers’ only wish would be that the children of Mill Creek West would remain happy, healthy and safe. “Jack was so dedicated to everyone here. He cared about everyone who walked in the door,” Crosby said. And in a school where reading, writing and arithmetic are the main focus, Eggers taught lessons of kindness that will last a lifetime. “We don’t think about people when we’re with them,” Crosby said. “It always hits you when they’re gone. But even in his passing his legacy will live on.” ● “Eggers, a school janitor, preferred to live a poor man’s existence. A year after his death, however, he showed that his poor man’s life was really a façade. Eggers was saving every penny so someday after he was gone, he could do some good.” Todd Crosby, Principal, Mill Creek West Elementary School LEAVE A LEGACY 5
Lester never finished school, but he learned a lot mopping classroom floors. “You kids can be anything you want,” he’d say. Lester wasn’t rich, but because he included a gift to support the school’s tutoring program in his will, things will add up for a few more students. Include your favorite cause in your will or estate plan. Contact a charitable organization, attorney, financial advisor or local LEAVE A LEGACY® program to learn how. School janitor Lester Holmes died in 1992. After school today, he’ll help an 8-year-old understand math. Make a Difference in the Lives that Follow www leavealegacy org Make a Difference in the Lives that Follow www.leavealegacy.org LEAV E A LEGACY
LEAVE A LEGACY 7 IRA : A NEST EGG FOR RETIREMENT AND BEYOND ■ BY ED SNYDER, ChFC It is not uncommon for people to have plans to leave some of their assets to char- itable organizations upon their death. Donating the proceeds of an individual retirement account or other qualified retirement plan -- 401(k), 403(b), SEP, etc. -- is an option you should explore if you are considering a planned gift to a charity. As you know, contributions to an IRA or 401(k) plan grow on a tax-deferred basis. Thus, retirement plan assets increase in value without paying tax on the appreciation. By donating the proceeds from the plan to a qualified charity, you can avoid the likelihood of double taxation from estate and income taxes on distributions after death. This double taxation would most likely occur if these assets were left to other heirs, such as friends and family, because they do not have the preferred tax status afforded to qualified charities. What makes a gift of retirement plan assets such a valuable estate planning strategy? Normally, distributions to heirs upon death are exempt from income tax. However, certain assets, including distributions to the beneficiary from an inherited IRA or other retirement plan, are usually fully taxable. So,whenaretirementplanisgivenasan inheritance to a family member (other than a surviving spouse), both estate and income tax liability may arise on the transfer. Depending on the size of the estate, federal estate and income taxes on retire- ment plan assets can result in an effective tax rate of almost 60 percent. As a result, many people rightfully decide that it would be better to give their retirement assets to a charity rather than to taxing authorities. As a practical matter, there can be sig- nificant tax advantages of transferring retirement assets, which are subject to IRD, to a tax-exempt charity and transfer- ring non-taxable assets to your other heirs. With federal estate and income taxes totaling nearly 60 percent, this leaves the heirs with just over 40 percent of the value of the retirement assets. It might be wiser to apply these assets to your specific char- itable bequests. The simplest way to leave retirement assets to your desired charity is to name the charity as the beneficiary on the account’s beneficiary designation forms. It is important to specify this wish on the beneficiary designation forms, which can be obtained from the custodian or plan administrator, rather than making a provi- sion in your will. If you want to leave only a portion of an account to charity and also keep your heirs on the account as beneficiaries, you need to be sure that whomever would han- dle your estate after you are gone clearly understands the IRS rules for inherited retirement plans and designated beneficiar- ies as there are several pitfalls to avoid. ● ■ Ed Snyder, ChFC is a financial advisor at Oaktree Financial Advisors in Carmel. The Indiana Society of Association Executives has honored LEAVE A LEGACY ® with the “Best Philanthropic and Community Initiative Award.” Tami Tarpley, director of LEAVE A LEGACY, accepted the honor in late 2004 at ISAE’s annual Society’s Top Association Recognition awards. The gala dinner recognizes the best examples in several categories of association manage- ment, products, services, and events. National Committee on Planned Giving’s LEAVE A LEGACY campaign is a decade-old initiative that raises public awareness about leaving bequest gifts to charity in wills and estate plans. NCPG member councils sponsor local programs that operate in more than 150 U.S. cities. LEAVE A LEGACY ® CAMPAIGN WINS AWARD 65 I 6% I Get rid of capital gal, problems and un low Interest CDs Into a guarauteed lucerne for life. Witi a miuliourn Sl OSO ceutributleu, 65 6% von receIve a 75 1.1% charitable deductlou, tax free lucerne 85 9.5% and an lucerne stream. For a tree personalized Illustration,with no obligatIon,call Vivian CIII, Dir ector of Planned Giving, today: (3111224-1012 or vlvlan gIII@usc salvatlonarmy.org Tie Salvation Army Plauued GIving Departiueut 3101N. Meridian IndianapolIs, IN 462S8 (3111931-1000 or salvatlonarinyiudiana.oru Ga. 75 I 1.1% I 85 I 9.5% I .-
8 LEAVE A LEGACY Devoted volunteer bequeaths highly valuable paintings to IMA ■ BY NIKKI NICHOLS Susan Mallinson had a volunteer’s heart. And even though she has died, that heart continues to beat at the Indianapolis Museum of Art through paintings she bequeathed to the IMA in her will. Mallinson, a former teacher at Speedway High School, left the classroom to begin her family. With her husband, Harry, a former president of Eli Lilly and Co., she had three children. Her interest in art and volunteerism brought her to the IMA, where she became a docent. Ellen Lee, Wood-Pulliam senior cura- tor at the museum, knew Mallinson as dedicated, detail-oriented and ready to tackle any job, no matter the size. “When I say volunteer, I mean she was the ultimate volunteer. She was complete- ly devoted to the museum,” said Lee. “Susan would be up at two in the morn- ing working on projects for us. She had a genuine love of art and the mission of the IMA,” Lee said. Mallinson’s volunteer work at the museum extended into three decades, and she was also a trustee of the museum. In the 1970s, Mallinson began to col- lect art to decorate her own home. Her SHARING LOVE FOR ART son, Richard Mallinson, said she approached her art purchases with a great deal of care and advice. “She had some ideas in mind for an American painting, so some of the muse- um staff helped guide her in finding one she wanted. It turned out that it was a rea- sonably valuable piece.” Richard Mallinson is speaking of a 1912 painting by American artist William McGregor Paxton. The painting is called “Girl Sweeping” and is characteristic of Paxton, who was famous for painting women in elegant settings. Harriet Warkel, associate curator of American painting and sculpture at the IMA, said Paxton’s paintings are sought after for a number of reasons. “Paxton is considered a superb drafts- man and colorist,” Warkel said. “This piece also shows the various ways he painted textures, and it is an important example of his style and technique.” Mallinson also left to the IMA a paint- ing by another famous American artist, Edward August Bell. “The Statuette,” a work from 1912, shows Mallinson’s own taste for beautiful surroundings. “It shows an elegant woman holding a sculpture,” Lee said. “These are things Susan liked living with in her home. Through these two paintings, Susan has enabled the museum to enrich its American holdings.” After she moved to Vero Beach, Fla., Mallinson gave the IMA a donation and asked the curator to acquire a painting. The museum purchased a piece called “Monsieur Pool” by French Neo- Impressionist artist Albert Dubois-Pillet. The work features a handsome uniformed soldier. Lee said, “The museum has the nation’s best collection of Neo- Impressionist paintings, but this was one of the few painters we were missing.” Mallinson’s gifts have, in a sense, filled some previously empty canvas at the Indianapolis Museum of Art. With that in mind, Lee said it’s beneficial when some- one considering a bequest to a museum contacts the curators in advance. “We all love surprises, but in the case of a donor considering bequeathing a piece of art, it’s wonderful to let the muse- um know in advance so we can make sure it’s an appropriate fit with the museum’s collection,” she said. Mallinson did not live to see the muse- um’s $74 million expansion project com- plete. She died in August 2004 of compli- cations from a stroke at age 84. But Mallinson’s spirit is felt everywhere -- on the lush grounds, in the busy halls, but mostly on the walls of the IMA, where her three gifts hang today. Lee, who gave the eulogy at Mallinson’s funeral, said, “It is enormous- ly satisfying to me to see the galleries with the art she loved hanging on the wall, symbolizing her generosity. “The positive way to look at it is that I know she wanted a piece of her heart at the museum, and it’s here.” ● Mallinson “Monsieur Pool” by Albert Dubois-Pillet “Girl Sweeping” by William McGregor Paxton “The Statuette” by Edward August Bell
A look at the complex subject of how to divide your estate ■ BY MARK HELMUS Regardless of the size of one’s estate, many ask themselves how much should I leave my heirs? Because of significant increases in personal wealth through salaries, investments and retire- ment plans, this question is on the minds of many who are making their estate plans. Let’s review some of the issues that should be considered, along with some of the questions that need to be asked and answered. Forget about the amount – should I leave anything to my heirs? Unfortunately, but not surprisingly, there are no “correct” answers to ques- tions like this. As is often the case, familial circumstances and individual differences must be considered. So how does one go about determin- ing if bequests should be made to heirs? One general approach is to truly look at the bequest like a gift -- not an expectation or a right, but a gift that you wish to give to those you love and who are important to you. This may seems overly simple; how- ever, your estate is exactly that – yours. You’ve worked, invested and saved to accumulate assets. Giving any or all of it away is a deci- sion that should be made based upon your personal feelings about those who stand to receive your gifts. OK – then how much should I give to those I feel strongly about? Sorry, but an answer similar to the question above applies here … it depends. I encourage you to consider asking yourself the following questions. • What are the needs of my heirs? • For those who have dissimilar needs, is the difference because of circumstance, effort or a combination of both? • Should I help those who are strug- gling financially or with health or other issues more than the others? • How responsible have my heirs been with their own finances? • Do I think they can effectively handle or manage the gift that I am considering? • Should I give anything to my adult children who have been on their own for a while? • Should I give anything to my grand- children, or is that the responsibility of my children? • Will what I give my heirs ultimately be more harmful to them than if I gave them less or nothing at all? This list represents only the tip of the iceberg. The answers you provide will lead to other unique questions and issues about you, your family and those important to you. The results of your discussion and deliberations can, however, help you determine not only if and how much to give, but also how and when. What options do I have in terms of gifts for my heirs? While the simple bequest by will or trust is most common, there are so many options available that they could literally fill this entire publication. That said, following are some methods for making gifts from your estate: Lifetime -- While we have been focus- ing on gifts at death, we shouldn’t for- get about opportunities during life. You may give up to $11,000 per year or up to a total of $1 million during your life- time to as many individuals as you choose with no gift tax implications. Also, gifts to charitable organizations support essential programs and services and can also provide valuable income and capital gain benefits. Depending upon the size of your estate, individual and charitable gifts during life can also help minimize or eliminate estate taxes. Bequest -- Gifts through a will or trust (bequests) can be structured in several ways. Most common are the specific and percentage bequests. A specific bequest is often used when the donor wants to give a certain item or asset to an individual or organization. The per- centage bequest divides one’s estate between multiple heirs or beneficiary organizations. This is best utilized when the value of the estate is unknown, which is frequently the case. A contingent bequest can be either specific or a percentage but is contin- gent upon another condition before it can be made. For example, a bequest might be contingent upon the death of both spouses, the heir reaching a certain age or graduating from college. Beyond basic outright gifts during life and bequests upon your death, which by far constitute the majority of gifts made by individuals, there are a number of other assets and gift “vehi- cles” that you may wish to discuss with your estate or tax planning attorney, accountant or financial planner. Retirement plans -- Be wary here. While these assets make great gifts for charitable organizations, they do not necessarily make the best gifts for heirs. In a nutshell, gifts of retirement income to individuals other than the retiree HOW MUCH DO YOU LEAVE YOUR HEIRS? See HEIRS page 14 LEAVE A LEGACY 9
10 LEAVE A LEGACY Looking to the future with more visible bequest program ■ BY NIKKI NICHOLS A bright-eyed elderly man exits the passenger side of his daughter’s car and asks, “What is this place?” This place is Joy’s House, a renovated 19th century farm- house that has found a new life hosting Indianapolis-area adults who need supervised care during the day. Danette Siertle drops off her dad, Howard, at Joy’s House every Friday morning. It’s a routine that began almost a year ago, but Howard doesn’t ever remember his previous visits because Alzheimer’s disease has ravaged his 78- year-old mind. “He doesn’t know he’s lived in Indianapolis for two years. He thinks he’s just here on vacation,” said Siertle. Joy’s House opened its doors to guests like Howard in November 2000 after an ambitious fund-raising cam- paign. Now that Joy’s House has hit its stride, its founder, Tina McIntosh, is set- ting an eye to the future -- a future that includes a more visible campaign for bequests, and in turn, a more secure future for Joy’s House and the families it serves. Joy’s House, contrary to its name, was conceived after a number of person- al tragedies in the life of McIntosh. In October 1998, one of her best friends died. A month later, her father was beaten with baseball bats by a group of five men in Fort Wayne. The alterca- tion occurred when her father, an alco- holic for as long as she can remember, was intoxicated and walking home from a local bar. McIntosh was told her father would likely not live through the night. Funeral planning began. Her father’s condition, much to the astonishment of doctors, began to improve. McIntosh drove to Fort Wayne to take care of her father, with whom she had a strained relationship. Her two con- siderably younger siblings also helped. The long drive between Indianapolis and Fort Wayne could be arduous … but was also meditative. McIntosh had volunteered during college at a facility that provided day services to adults who could not be alone. Before long, the idea of starting a similar facility in Indianapolis began to blossom in her mind. “This whole concept of adult day services kept coming back to me,” recalled McIntosh. “I found myself praying a lot and during these drives, I started listening and questioning what the priorities were in my life.” McIntosh’s mother took her on a Bahamian cruise. Surrounded by the openness and serenity of the ocean McIntosh is so drawn to, she finally sur- rendered to the idea of opening her own adult day services center. She came home, quit her job as a suc- cessful event planner, set meetings with others in the industry, and began the journey that has brought so much joy to others’ lives. “My family and friends have always been very gracious,” she said. “Secretly I think most of them thought I had lost my mind. Joy’s House would not be here without their hard work and support, and it’s been amazing to me to see them go from simply supporting me out of love to becoming very passionate about the families we serve.” McIntosh’s enthusiasm was conta- gious, so much so that soon her friends became believers in the project. They helped network in the community and continue to inspire others to donate funds to the cause. The initial capital campaign brought in $115,000, with which Joy’s House bought the old farmhouse at 62nd Street just west of Keystone Avenue. With donations from Lowe’s Hardware and other local businesses, the house was brought to tip-top shape, in time to wel- come the home’s first guests. The guests are given supervised care throughout the day, with a small staff and volunteers. Each adult is given the respectful greeting of “Mister” or “Miss” before his or her first name. Guests have access to all the trappings of home -- comfortable furnishings, a tele- vision, and even a piano. Staff and volunteers lead stimulating activities, such as working in the sprawl- ing backyard garden. The garden is Mr. Howard’s favorite part according to his daughter. “He can out-garden me any day,” said Siertle, who said her father is still extremely physically fit. “When I saw the garden area, I knew he would be a perfect fit to help with this. Dad’s impression is that he’s there as a volun- teer. He feels like he has a purpose.” Joy’s House has the capacity to host 25 guests per day, and their families have started to rely on the great comfort Joy’s house has brought them. “I have two young children, and my children need me, too,” Siertle said. “I was using so much energy on my father that I didn’t have any energy left for the rest of my family. What Joy’s House does and knowing Dad’s there, I can shut down. I don’t have to worry about what would happen if he wandered away from home because he’s safe.” To ensure that this peace of mind can continue for local families well into the future, McIntosh and her supporters are crafting new ways to ensure sustainabil- ity of Joy’s House in an already crowded charitable marketplace. “I definitely think that exploring bequests is a great start,” McIntosh said. “In the end, we are a business and we have to ask for the support to continue to serve adults and their families.” To meet these needs, McIntosh says Joy’s House is trying to rely more on internal fundraising rather than asking JOY’S HOUSE OFFERS SAFE, LOVING SANCTUARY See JOY’S HOUSE page 13 McIntosh
LEAVE A LEGACY 11 IRA ROLLOVER LEGISLATION INTRODUCED National Committee on Planned Giving urges Congress to act Reps. Wally Herger, R-Calif., and Earl Pomeroy, D-N.D., introduced the Public Good IRA Rollover Act (H.R.1607) in the U.S. House of Representatives April 12. This bipartisan legislation would allow individuals age 701/2 or older to contribute amounts cur- rently held in IRA accounts directly to qualified charities and individuals age 591/2 to make charitable gifts through split interest arrangements, without hav- ing to first recognize the income for tax purposes, and then take a charitable deduction. According to data compiled by the Investment Company Institute, nearly one-half of American households have IRA accounts, and there are about $2.5 trillion in those accounts and a similar amount in other qualified plan accounts that could be transferred to IRA accounts. In his floor statement, Herger noted that Congress has exempted withdrawals from IRA accounts under certain circum- stances, such as to finance the purchase of a home or a college education. He called on Congress to encourage older Americans to support charities by allow- ing withdrawals from their IRA assets without suffering adverse tax conse- quences. The National Committee on Planned Giving, which represents more than 10,000 charitable fundraisers and donor advisors, has long advocated for passage of the charitable IRA rollover legislation. Last session, the provision passed both houses of Congress as part of the CARE Act but was not enacted because of parti- san disagreements over the process to negotiate and resolve differences in the two bills. Tanya Howe Johnson, president of NCPG, said, “Generous individuals all over the country want to give excess Create a Legacy of Learning Designate a planned or estate gift and help the museum provide extraordinary learning experiences to children and families for generations to come. For more information, please contact Kelly Lamm at (317) 334-3206 or online at kellyl@ChildrensMuseum.org 3000 North Meridian St. • Indianapolis • ChildrensMuseum.org LutheranChild& FamilyServices Child OF INDIANA/KENTUCKY For every child or family in need, There’s a person who wants to give. We help them find each other. Your planned gift to Lutheran Child & Family Services of IN/KY can touch the lives of children and families of the future. Call 317-359-5467 for more information. www.lutheranfamily.org money in their IRAs to charity, but they are stymied by the complexity of the process and the prospect that their IRA contribution will not receive the same tax treatment as other charitable gifts. As philanthropists, they want to support charity, but as people who have worked hard for their money and are planning carefully for retirement, they want to be sensible about their giving, and they want their legislators to support them in that effort.” In his floor statement introducing the bill, Herger acknowledged the NCPG and other IRA charitable rollover coali- tion organizations. NCPG was instru- mental in providing research and infor- mation to Herger throughout the process of drafting and introducing this legisla- tion. President George Bush has endorsed the charitable IRA rollover and included it in his budget for fiscal years 2005 and 2006. ●
12 LEAVE A LEGACY ■ BY NIKKI NICHOLS The Indianapolis Symphony Orchestra is playing on a very high note these days. Of the 18 other full-time, professional orchestras in the United States, the ISO is one of the only orchestras with a balanced budget. How? With great effect, it takes 87 gifted musicians, thousands of loyal concertgoers, and successful drives to bring ticket holders into a more intimate rapport with the orchestra through vari- ous charitable giving vehicles. Fred and Jane Schlegel are two long- time patrons of the Indianapolis Symphony Orchestra who have been attending symphony concerts for 35 years. They are captivated by the orchestra’s energy brought forth by the many world-renowned conductors that have led the group. The most recent installment to the conductor’s podium is Mario Venzago, who in the Schlegels’ estimation, has brought a new verve to the concert- going experience. Fred, a partner at the law firm of Baker and Daniels, said, “Mario brings both quality and excitement. His posi- tive contribution is beyond question.” The Schlegels are more than audi- ence members, however. Through the years, they’ve volunteered and held leadership positions with the symphony. In addition to their volunteer work, they have made and pledged many charitable gifts to the orchestra. Among them, Fred has given a life insurance policy to the orchestra, and he and his wife together will leave bequests to the symphony in their wills. The Schlegels have also set up a charitable remainder trust. This type of trust allows that whatever is left of a trust set up in their wills after bequests are made will be divided and given to several local charities, including the ISO, the Indianapolis Opera, the Indiana Repertory Theater, and the Festival Music Society. Bob Swaney knows the Schlegels well. He works in the development office of the ISO, helping to facilitate those charitable gifts the symphony needs to keep going. He said the Indianapolis Symphony sets itself apart from other orchestras insofar as one third of the operating budget comes from charitable gifts. “We are in the smallest market among the 18 professional orchestras in the U.S., and it takes a lot of creativity year after year to balance those budg- ets,” Swaney said. “Philanthropy is huge. Most of those other full-time orchestras don’t rely on charitable gifts nearly much as we do.” Perhaps one reason the orchestra has maintained such success with sustaining the endowment is the variety of ways the public can make gifts. “We own the hall and the building, so there are naming opportunities for structural items like rooms and other things along those lines,” Swaney said. “Even the box office lobby has a name.” Swaney said an extremely intriguing option to many donors involves having a more personal connection to the orches- tra. This can be accomplished by endowing one of the orchestra chairs. In fact, 18 of the orchestra’s 87 chairs are endowed. The Schlegels’ planned gifts will endow the chair now occupied by prin- cipal violist Michael Strauss. “He’s a very enjoyable performer,” said Fred. “His musical skills are fantas- tic. His ever-present enthusiasm is engaging. He also has a great sense of humor.” Swaney said that some people have an existing relationship with the musi- cian, but it’s not unusual for donors to endow chairs occupied with musicians with whom they’ve had no prior contact. “If the donor doesn’t know the musi- cian, perhaps that person played the French horn, so he/she would want to be associated with the French horn player.” “Music is a wonderful, comfortable remembrance,” added Swaney. “Coming to hear the orchestra helps that surface again. When a naming opportu- nity comes along, donors can reconnect to something from 40 or 50 years ago.” Some symphony donors prefer to take a more behind the scenes approach to giving, choosing not to have their names added to programs or publicly displayed plaques. The ISO staff respects these donors’ wishes to remain private but always understands why oth- ers like to be recognized. “People like to connect themselves publicly to the institution, and it may potentially encourage others to give,” Swaney said. “People want to be associ- ated with a winner. People see it as strong motivator.” The ISO has found that focusing on a small number of planned giving vehi- cles works best. “Most people are comfortable with putting a bequest in their wills. The big task at hand is getting people to write a will,” Swaney said. Fred has advice for anyone who has given even the slightest thought to leav- ing a charitable gift or bequest to the Indianapolis Symphony Orchestra. “Just do it! Do it if you like Indianapolis or the ISO or both,” he said. “I view this as much a gift to the city as a gift to the ISO. Indianapolis without the ISO just wouldn’t be the same.” ● BEQUESTS HELP SYMPHONY PLAY ON Strauss
LEAVE A LEGACY 13 Bequests keeping pace with nation, but there’s room to grow ■ BY NIKKI NICHOLS Charitable organizations need finan- cial assistance from people like you to continue their work. More than 80 per- cent of Americans contribute to the not- for-profit groups of their choice throughout their lifetimes, but only about 8 percent leave a gift to charity in their will. In Indiana, research shows that Hoosiers are keeping pace with the nation in both how many residents have a will and the number of wills that con- tain charitable bequests. According to the Associated Press, 42 percent of all Americans claimed to have a will in 2004. In a 2004 survey of Indiana residents taken by the Center on Philanthropy at Indiana University, 46 percent of Hoosiers indicated they have a will. Nearly 13 percent of Indiana residents in the survey indicated they currently have a charity named in their will, and another 23.4 percent would consider naming one in their will in the future. While the news is encouraging, the Indiana numbers still contain plenty of INDIANA BEQUESTS room for growth in both the need to write wills and the number of wills that contain charitable bequests. A further breakdown of the numbers shows a disparity in the giving trends of Hoosiers compared to the national aver- age, further underscoring the need for additional bequest awareness in Indiana and elsewhere. The following statistics, released in 2000, compare the estate gifts of Hoosiers to the national average. 2000 Indiana Bequest Statistics* • 2,143 Indiana residents left total estates of $3.6 billion, or 1.7 percent of the $217 billion total estates left in the U.S. • 358 Indiana residents made charita- ble bequests (gifts to charity through a person’s will) totaling more than $245.3 million, or 1.5 percent of the $16.8 billion bequeathed to charity. • The average Indiana estate was $1.7 million, compared to the U.S. aver- age of $2 million. • The average dollar amount of Indiana charitable bequests was $685,000, compared to the U.S. average of $932,000. • 17 percent of Indiana estates included a charitable bequest, compared to the U.S. average of 17 percent. • Among those who left charitable bequests, Indiana residents bequeathed 31 percent of their estates to charity compared to 28 percent of the estates for the average of those in the U.S. • 6.7 percent of the assets of all estates settled in Indiana were distributed in charitable bequests compared to 7.7 percent average of the U.S. It’s important to note that the amount indicated as bequeathed by Indiana resi- dents to charity does not necessarily stay in Indiana. Indiana not-for-profits also benefit from bequests to charity from estates settled in other states. The total amount bequeathed to chari- ty in Indiana does not reflect those planned gifts such as charitable remainder trusts, charitable lead trusts, foundations, etc., whose creation often results from estate planning. Changes in the federal estate tax will also have an impact on state tax revenues. ● *Indiana bequest data provided by the Forum of Regional Associations of Grantmakers, with data analysis provided by the Connecticut Council for Philanthropy. Source: IRS Statistics of Income Division. for grants from foundations and local corporations. “We see the support of foundations and corporations as a continual part of our budget but just not to a degree that it has been in the past,” she said. McIntosh is starting to consider ways to market other charitable giving vehicles to the community -- ways other than the usual, outright charitable gift of cash. Inspired by the LEAVE A LEGA- CY® initiative to begin more bequest marketing, McIntosh and two friends, Indianapolis attorneys Tammy Stevens and George Slater, hosted a special estate-planning workshop April 23. Both Stevens and Slater offered visitors free power of attorney forms and living wills and also offered to write a will for patrons free of charge if they agreed to leave a bequest of any size to Joy’s House. Sixteen families were represented at the event. This workshop is another example of how Joy’s House has given something to the community while also helping to ensure a bright future. And Joy’s House has brought a new kind of fulfillment to its founder. “I have learned that my little troubles are really nothing compared to chal- lenges that alter your life’s plans,” said McIntosh. “I learn not to complain to a 46-year-old man who has been living with multiple sclerosis about the cold that I have had for three weeks. It just doesn’t seem to compare, now does it?” While McIntosh revels most of all in the fulfillment derived by her husband and two children, along with the new- found sobriety of her father, she knows Joy’s House was a true calling sent to her in those troubled times. “I could see it, hear it, touch it, and I know it’s where God wants me to be.”● JOY’S HOUSE Continued from page 10
WILL Continued from page 4 and/or spouse can have extremely neg- ative tax consequences – as high as 70 percent with combined estate and income taxes. For an individual who plans to leave equal amounts to his children -- one through a $100,000 bequest and the other as the beneficiary of a $100,000 IRA – he or she has potentially made two very different gifts. Depending upon the value of the donor’s estate and the income tax bracket of his children, the latter child may receive as little as $30,000 from the gift. Insurance -- Basic life insurance can be a good asset to give to both heirs and charitable organizations, particularly if you no longer need the policy. Wealth replacement insurance is another popu- lar option for those who want to give to both heirs and charity. Be sure to talk with a qualified insurance professional about options with your existing policies or about future needs for your heirs. What if I’m concerned about my heirs’ ability to handle money now? Many parents and grandparents strug- gle with this issue. If this is a concern, there are several charitable gift options that you to may want to consider. • Gifts to help my heirs attend college (Deferred Charitable Gift Annuity) • Support my heirs during their life time with regular and consistent income streams rather than a large lump sum (Charitable Gift Annuity or Charitable Remainder Trust) • Help charity now, then, when my heir(s) are older and more mature, have the gift “revert” back to them from the charity (Charitable Lead Trust) We’re ready to move forward with our plans. Where, and how do we get started? If you haven’t done so already, start by scheduling an appointment with a qualified professional advisor. This might be an estate planning attorney, accountant or financial advisor – or a combination of the three. These professionals can guide you through a process of understanding your assets and resources, your future needs and wants, and what you ulti- mately wish to do with what you’ve accumulated. If you’re not sure where to start, I encourage you to visit the gift-planning representative of a not-for-profit organ- ization that you support. They can help you think through some of these issues and refer you to professionals like those mentioned. In short, certain charitable gift vehi- cles can help you make gifts to your heirs and support charitable organizations. In the process, you get to experience the personal joy and satisfaction of giving. The final benefit – a tax savings for you – is truly the icing on the cake. Enjoy the opportunity to pass on what is yours. Giving should be a rewarding, enriching and enjoyable act. Give in a way that feels good! ● HEIRS Continued from page 9 14 LEAVE A LEGACY Battling affluenza Affluenza is a recently coined term that describes the potentially negative personal and societal affects that can result from an unhealthy relationship with money. According to the Affluenza Project, this social “disease” has been defined as “… a dysfunctional relationship with money/wealth, or the pursuit of it.” If you’d like to know more, visit the pro- ject’s Web site, (www.affluenza.com) or call them at (414) 481-1500. One method I’ve recently learned of to help fight affluenza is called “The Gifting Game.”Thisnewboardgameisdesignedto help families talk and learn about philan- thropy in a fun context and, in the process, develop and share their own beliefs about the value of money and charitable giving. To learn more about it, contact the Foundation Source at (800) 839-0054. General bequest language: “I give, devise, and bequeath to NAME OF CHARITY/LOCATION, the sum of $________(or a description of the specific asset), for the benefit of NAME OF CHARITY and its general purposes.” Residuary bequests Residuary bequests are made when you intend to leave the residue portion of your assets after other terms of the will have been satisfied. Residuary bequest language: “All the rest, residue, and remainder of my estate, both real and personal, I give to NAME OF CHARITY/LOCATION, for its general purposes.” Contingency bequests Contingency bequests allow you to leave a portion of your estate to a par- ticular charity if your named benefici- ary does not survive you. Contingency bequest language: “I devise and bequeath the residue of the property, real and personal and wher- ever situated, owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of ben- eficiary) does not survive me, I devise and bequeath my residuary estate to NAME OF CHARITY/LOCATION, for its general purposes.” Without a will, there is no mecha- nism in place to make a bequest, so here are the steps you should take to make sure your wishes are granted: • Make a list of organizations or caus- es that you would like to support. • Make a detailed list of your assets (financial, real estate, vehicles, jewelry, collectibles, musical instru- ments, etc.) • Schedule an appointment with your financial analyst or attorney, or planned giving officer at the organi- zation you intend to support. These professionals will help guide you through the process. ●
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Alphonso Pettis is still making a difference. You can, too. “When I made this gift to the citizens of Indianapolis, I had only in mind something for those who had done so much for me.” Alphonso Pettis, first donor to The Indianapolis Foundation in 1920 In his will, Mr. Pettis left The Indianapolis Foundation more than $300,000. Over time and with superior investment, it is worth nearly $3 million today! This gift, when pooled and invested with others, provides at least $150,000 each year to local not-for-profits through The Indianapolis Foundation Community Endowment Fund. Make a lasting gift to The Indianapolis Foundation or Legacy Fund Community Endowment in your will or estate plan. Contact Central Indiana Community Foundation or your professional advisor for more information about charitable bequests and make a difference in our community – forever. p 317.634.2423 G www.cicf.org If you take charitable giving seriously, you need to know about us. . . . S ps .. S I Th INDIANAPOLIS II I F O U N D A T I O N L E G A C Y F U N D C E N T R A L I N D I A N A I COMMUNITY FOUNDATION I Inspiring philanthropy

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IBJ Supplement Final

  • 2. Each year thousands of families in Indiana face the fear of having a child with a life-threatening illness or injury. Oftentimes these families must travel from the comforts of their home to Riley Hospital for Children and other Indianapolis-area hospitals for specialized medical treatment. The Ronald McDonald House® of Indiana has been providing these families with a comfortable, affordable and caring "home-away-from-home" for 23 years. With your help we can continue to provide families with a refuge from the hospital, where they can cook a meal, share a laugh, shed a tear and find comfort during difficult times. You can make a gift of love that will extend beyond your lifetime. Please contact the Ronald McDonald House® at 317-269-2247 for more information. No family should have to endure the pain of being apart from their critically ill child Ronald McDonald House® of Indiana • 435 Limestone Street • Indianapolis, Indiana • 46202-2819 www.rmh-indiana.org • 317-269-2247 - I I
  • 3. LEAVE A LEGACY 3 FROM THE DIRECTOR TABLE OF CONTENTS My name is Tami Tarpley, and I am proud to serve as national director for the LEAVE A LEGACY ® public awareness campaign conducted by the National Committee on Planned Giving, an organization that serves charitable fundraisers and estate-planning professionals across the United States. I hope that in this special supplement, you will learn more about how easy it is to leave a bequest to charity, as well as other types of planned-giving options that are available to you. I also believe you will be inspired by the donor stories shared on these pages, which prove that you can make a difference in the lives that follow through a bequest -- large or small -- to the charity of your choice. Americans are a generous people, so why is a program like LEAVEA LEGACY nec- essary? While it is true that more than 80 percent of Americans contribute to charitable organizations throughout their lifetimes, research conducted in 2000 indicates that only 8 percent of people chose to continue this support through a charitable bequest. Just consider the overwhelming support Americans provided to victims of the Sept. 11, 2001, terrorist attacks or, more recently, those devastated by the Indian Ocean tsunami. If we could harness that spirit of giving and motivate just 20 percent of Americans to leave a charitable bequest, the current number of charitable bequests would more than double. Imagine the impact we could have if each of us remembered a favorite charity in our will or estate plan. Since its creation in 1994, LEAVEA LEGACY has grown from a successful, month- long media campaign designed to promote the value of bequest giving in the Columbus, Ohio, area into a unified, national movement that operates daily in more than 165 com- munities in the United States -- with an additional 24 programs in Canada. Through local LEAVE A LEGACY programs, dedicated volunteers are actively pro- moting the importance of bequest giving in partnership with charities and businesses of all sizes through the use of a nationally produced media campaign kit, special events and much more. The public response has been overwhelming, and we look forward to continued growth in the coming years. In partnership with our friends at IBJ Corp., I believe we have created a publication that is both informative and inspirational. To learn more about LEAVE A LEGACY, please visit our newly expanded national Web site at www.leavealegacy.org or call the National Committee on Planned Giving at (317) 269-6274. I thank you for your interest in making a difference in the lives that follow! Sincerely, Tami Tarpley National LEAVE A LEGACY® Director Writing a Will....................................4 Giving Love.......................................5 IRA: A Nest Egg For Retirememnt And Beyond....................................13 Star Award.....................................13 Sharing Love For Art........................8 How Much Do You Leave Your Heirs?........................................9 Joy’s House .......................................10 IRA Rollover Legislation..................11 Bequest Helps Symphony...............12 Indiana Bequest.............................13
  • 4. WRITING A WILL How to broach the subject, get started ■ BY NIKKI NICHOLS For many, writing a will is an uncomfortable, even depressing, sub- ject. It forces us to confront the unsa- vory subject of death. Because facing our own mortality can be intimidating, many people die without wills. In fact, an Associated Press news story published late in 2004 reported that 42 percent of Americans do not have a last will and testament in place at the time of their deaths. If you are having a hard time build- ing yourself up psychologically to write a will, be comforted you are not alone. But also heed this warning: If you don’t have a will, you’re giving up control of a vitally important piece of your legacy: your last wishes. Wills: A public image problem It’s a plain and simple truth: Settling an estate can be a sticky situation. Many estates are settled not only with the distribution of assets but with a fair amount of family squabbling and gen- erally prickly behavior. This uncom- fortable ritual usually occurs at the height of grief, and any perceived imbalances could lead to years of fami- ly discord and emotional trauma. To save your family needless heartache and uncertainty, make sure you consult with a professional, and be sure to understand that being specific about your intentions is of critical importance when writing the will. Remember charity in your will At the core of the LEAVE A LEGA- CY® campaign is the message that we should all do our part to make a differ- ence in the lives that follow. The idea is to choose charities of your choice at whatever amount works best within your resources and make a charitable bequest to that organization. What is a bequest? A charitable bequest is simply a dis- tribution from your estate to a charita- ble organization through your last will and testament. There are different kinds of bequests. For each, you must use very specific language to indicate the precise direction of your assets and to successfully carry out your final wishes. In any charitable bequest, be sure to name the recipient accurately. A bequest to “The Cancer Society” might go to national headquarters, when you meant it to go to the affiliate in your community. Whether it’s a hospital that showed you particularly compassionate care, an animal shelter you valued, an arts organization that brought you enjoy- ment, or an educational institution that helped you with scholarships, that char- ity depends on donors. Listed here are some common types of bequests and some sample bequest language to help familiarize you with the process of writing a will. These guidelines are not meant to be a substitute for the professional advice you receive from a trained estate attor- ney or financial planner. Specific bequests Specific bequests are made when a particular item or property is bequeathed for a designated purpose. (i.e., instruments bequeathed to the local school district for use in music education; dollar funds to be used in the operation of a school or church.) Specific bequest language: “I give, devise, and bequeath to NAME OF CHARITY/LOCATION, the sum of $_______ (or a description of a specif- ic asset), for the benefit of NAME OF CHARITY to be used for the following purpose: (state the purpose). If at any time in the judgment of the trustees of NAME OF CHARITY it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative pur- pose closest to the designated purpose.” General bequests General bequests are legacies left to certain people or causes that come from the general value of the estate and are made by designating a specific dollar amount, a particular asset or a fixed percentage of your estate to the cause of your choice. See WILL page 14 4 LEAVE A LEGACY
  • 5. GIVING WITH LOVE Small town janitor surprises school with $80,000 dollar gift ■ BY NIKKI NICHOLS Jack Eggers was a living snapshot of simpler times gone by. He wasn’t into frills, never subscribed to cable, didn’t drive his car much, preferred to grow his own food, and steered clear of the big city never straying far from tiny Amo, Ind., where he was born and raised. Eggers, a school janitor, preferred to live a poor man’s existence. A year after his death, however, he showed that his poor man’s life was really a façade. Eggers was saving every penny so someday after he was gone, he could do some good. He accomplished his wishes by leaving sizeable bequests to the school, church, and community he loved. Todd Crosby is the principal of Mill Creek West Elementary School in Hendricks County, the school where Eggers had worked since 1988. Crosby said Eggers lived a solitary existence at his modest, two-bedroom house, but when he showed up for work, he show- ered the students and staff with care and compassion. “The kids absolutely loved him,” Crosby fondly recalled. “Jack would give high fives to them, even though he was 6’3 and he’d have to crouch down to their level.” Crosby said when any kind of prob- lem appeared, the kids would scour the halls looking for Eggers. They respected and cared for him the same way he cared for them. Eggers was famous for remember- ing birthdays and writing short poems for students and staff. He didn’t have a family of his own, so he viewed the stu- dents, in a sense, as his very own. “That’s what’s so different between businesses and schools,” Crosby said. “It’s more of a family atmosphere. Jack was like a big daddy. He kept track of and cared for everybody.” There came a time when the favor of kindness would have to be returned. In 2003, Eggers was diagnosed with an aggressive brain tumor. Along with neighbors, school staff members and friends, Crosby -- who lost a family member to a similar condition -- helped take Eggers to his doctor’s appoint- ments in Indianapolis. Crosby said Eggers didn’t like trav- eling to the city and disliked not being able to rely solely on himself. “He knew he had to trust the doctors in what they had to do, but he didn’t like the fact that other people had to take care of him,” Crosby said. “He was used to taking care of himself, and he didn’t want a lot of attention on himself.” Eggers had surgery, but it only briefly slowed the tumor’s progress. He took a leave of absence from his janito- rial duties but later decided to retire. Even while enduring all the pain, he managed to stop by the school to visit the kids from time to time. The students and staff all received frequent updates on his progress. In winter of 2004, Eggers died at age 69. A year later, Eggers’ goodness was revealed to everyone in a most unex- pected way. The man who never bought fancy clothes or nice things had amassed a large amount in savings. When his estate was settled in early 2005, Mill Creek West Elementary School received $80,000 from Eggers’ last will and testament. “When we were told the amount it was shocking,” Crosby said. “We just found out this past winter, two weeks before the checks arrived. The school board approved the acceptance of the donations.” Eggers also left an undisclosed amount to Amo Baptist Church and another $120,000 to the Hendricks County Community Foundation. At Mill Creek West, his money will be split between a new playground and a general fund. Because it’s used by the entire community, the playground will be converted into a family friendly park with walking trails and all the latest and best playground equipment. The grounds will be named “Jack Eggers Memorial Playground.” The school library will get an update, and its crown jewel will be “Jack’s Corner,” a place full of poetry books and nice artwork to celebrate his love of writ- ing and drawing. News of Eggers’ bequests made local headlines, and Crosby knows he wouldn’t like any kind of public recognition. Eggers’ only wish would be that the children of Mill Creek West would remain happy, healthy and safe. “Jack was so dedicated to everyone here. He cared about everyone who walked in the door,” Crosby said. And in a school where reading, writing and arithmetic are the main focus, Eggers taught lessons of kindness that will last a lifetime. “We don’t think about people when we’re with them,” Crosby said. “It always hits you when they’re gone. But even in his passing his legacy will live on.” ● “Eggers, a school janitor, preferred to live a poor man’s existence. A year after his death, however, he showed that his poor man’s life was really a façade. Eggers was saving every penny so someday after he was gone, he could do some good.” Todd Crosby, Principal, Mill Creek West Elementary School LEAVE A LEGACY 5
  • 6. Lester never finished school, but he learned a lot mopping classroom floors. “You kids can be anything you want,” he’d say. Lester wasn’t rich, but because he included a gift to support the school’s tutoring program in his will, things will add up for a few more students. Include your favorite cause in your will or estate plan. Contact a charitable organization, attorney, financial advisor or local LEAVE A LEGACY® program to learn how. School janitor Lester Holmes died in 1992. After school today, he’ll help an 8-year-old understand math. Make a Difference in the Lives that Follow www leavealegacy org Make a Difference in the Lives that Follow www.leavealegacy.org LEAV E A LEGACY
  • 7. LEAVE A LEGACY 7 IRA : A NEST EGG FOR RETIREMENT AND BEYOND ■ BY ED SNYDER, ChFC It is not uncommon for people to have plans to leave some of their assets to char- itable organizations upon their death. Donating the proceeds of an individual retirement account or other qualified retirement plan -- 401(k), 403(b), SEP, etc. -- is an option you should explore if you are considering a planned gift to a charity. As you know, contributions to an IRA or 401(k) plan grow on a tax-deferred basis. Thus, retirement plan assets increase in value without paying tax on the appreciation. By donating the proceeds from the plan to a qualified charity, you can avoid the likelihood of double taxation from estate and income taxes on distributions after death. This double taxation would most likely occur if these assets were left to other heirs, such as friends and family, because they do not have the preferred tax status afforded to qualified charities. What makes a gift of retirement plan assets such a valuable estate planning strategy? Normally, distributions to heirs upon death are exempt from income tax. However, certain assets, including distributions to the beneficiary from an inherited IRA or other retirement plan, are usually fully taxable. So,whenaretirementplanisgivenasan inheritance to a family member (other than a surviving spouse), both estate and income tax liability may arise on the transfer. Depending on the size of the estate, federal estate and income taxes on retire- ment plan assets can result in an effective tax rate of almost 60 percent. As a result, many people rightfully decide that it would be better to give their retirement assets to a charity rather than to taxing authorities. As a practical matter, there can be sig- nificant tax advantages of transferring retirement assets, which are subject to IRD, to a tax-exempt charity and transfer- ring non-taxable assets to your other heirs. With federal estate and income taxes totaling nearly 60 percent, this leaves the heirs with just over 40 percent of the value of the retirement assets. It might be wiser to apply these assets to your specific char- itable bequests. The simplest way to leave retirement assets to your desired charity is to name the charity as the beneficiary on the account’s beneficiary designation forms. It is important to specify this wish on the beneficiary designation forms, which can be obtained from the custodian or plan administrator, rather than making a provi- sion in your will. If you want to leave only a portion of an account to charity and also keep your heirs on the account as beneficiaries, you need to be sure that whomever would han- dle your estate after you are gone clearly understands the IRS rules for inherited retirement plans and designated beneficiar- ies as there are several pitfalls to avoid. ● ■ Ed Snyder, ChFC is a financial advisor at Oaktree Financial Advisors in Carmel. The Indiana Society of Association Executives has honored LEAVE A LEGACY ® with the “Best Philanthropic and Community Initiative Award.” Tami Tarpley, director of LEAVE A LEGACY, accepted the honor in late 2004 at ISAE’s annual Society’s Top Association Recognition awards. The gala dinner recognizes the best examples in several categories of association manage- ment, products, services, and events. National Committee on Planned Giving’s LEAVE A LEGACY campaign is a decade-old initiative that raises public awareness about leaving bequest gifts to charity in wills and estate plans. NCPG member councils sponsor local programs that operate in more than 150 U.S. cities. LEAVE A LEGACY ® CAMPAIGN WINS AWARD 65 I 6% I Get rid of capital gal, problems and un low Interest CDs Into a guarauteed lucerne for life. Witi a miuliourn Sl OSO ceutributleu, 65 6% von receIve a 75 1.1% charitable deductlou, tax free lucerne 85 9.5% and an lucerne stream. For a tree personalized Illustration,with no obligatIon,call Vivian CIII, Dir ector of Planned Giving, today: (3111224-1012 or vlvlan gIII@usc salvatlonarmy.org Tie Salvation Army Plauued GIving Departiueut 3101N. Meridian IndianapolIs, IN 462S8 (3111931-1000 or salvatlonarinyiudiana.oru Ga. 75 I 1.1% I 85 I 9.5% I .-
  • 8. 8 LEAVE A LEGACY Devoted volunteer bequeaths highly valuable paintings to IMA ■ BY NIKKI NICHOLS Susan Mallinson had a volunteer’s heart. And even though she has died, that heart continues to beat at the Indianapolis Museum of Art through paintings she bequeathed to the IMA in her will. Mallinson, a former teacher at Speedway High School, left the classroom to begin her family. With her husband, Harry, a former president of Eli Lilly and Co., she had three children. Her interest in art and volunteerism brought her to the IMA, where she became a docent. Ellen Lee, Wood-Pulliam senior cura- tor at the museum, knew Mallinson as dedicated, detail-oriented and ready to tackle any job, no matter the size. “When I say volunteer, I mean she was the ultimate volunteer. She was complete- ly devoted to the museum,” said Lee. “Susan would be up at two in the morn- ing working on projects for us. She had a genuine love of art and the mission of the IMA,” Lee said. Mallinson’s volunteer work at the museum extended into three decades, and she was also a trustee of the museum. In the 1970s, Mallinson began to col- lect art to decorate her own home. Her SHARING LOVE FOR ART son, Richard Mallinson, said she approached her art purchases with a great deal of care and advice. “She had some ideas in mind for an American painting, so some of the muse- um staff helped guide her in finding one she wanted. It turned out that it was a rea- sonably valuable piece.” Richard Mallinson is speaking of a 1912 painting by American artist William McGregor Paxton. The painting is called “Girl Sweeping” and is characteristic of Paxton, who was famous for painting women in elegant settings. Harriet Warkel, associate curator of American painting and sculpture at the IMA, said Paxton’s paintings are sought after for a number of reasons. “Paxton is considered a superb drafts- man and colorist,” Warkel said. “This piece also shows the various ways he painted textures, and it is an important example of his style and technique.” Mallinson also left to the IMA a paint- ing by another famous American artist, Edward August Bell. “The Statuette,” a work from 1912, shows Mallinson’s own taste for beautiful surroundings. “It shows an elegant woman holding a sculpture,” Lee said. “These are things Susan liked living with in her home. Through these two paintings, Susan has enabled the museum to enrich its American holdings.” After she moved to Vero Beach, Fla., Mallinson gave the IMA a donation and asked the curator to acquire a painting. The museum purchased a piece called “Monsieur Pool” by French Neo- Impressionist artist Albert Dubois-Pillet. The work features a handsome uniformed soldier. Lee said, “The museum has the nation’s best collection of Neo- Impressionist paintings, but this was one of the few painters we were missing.” Mallinson’s gifts have, in a sense, filled some previously empty canvas at the Indianapolis Museum of Art. With that in mind, Lee said it’s beneficial when some- one considering a bequest to a museum contacts the curators in advance. “We all love surprises, but in the case of a donor considering bequeathing a piece of art, it’s wonderful to let the muse- um know in advance so we can make sure it’s an appropriate fit with the museum’s collection,” she said. Mallinson did not live to see the muse- um’s $74 million expansion project com- plete. She died in August 2004 of compli- cations from a stroke at age 84. But Mallinson’s spirit is felt everywhere -- on the lush grounds, in the busy halls, but mostly on the walls of the IMA, where her three gifts hang today. Lee, who gave the eulogy at Mallinson’s funeral, said, “It is enormous- ly satisfying to me to see the galleries with the art she loved hanging on the wall, symbolizing her generosity. “The positive way to look at it is that I know she wanted a piece of her heart at the museum, and it’s here.” ● Mallinson “Monsieur Pool” by Albert Dubois-Pillet “Girl Sweeping” by William McGregor Paxton “The Statuette” by Edward August Bell
  • 9. A look at the complex subject of how to divide your estate ■ BY MARK HELMUS Regardless of the size of one’s estate, many ask themselves how much should I leave my heirs? Because of significant increases in personal wealth through salaries, investments and retire- ment plans, this question is on the minds of many who are making their estate plans. Let’s review some of the issues that should be considered, along with some of the questions that need to be asked and answered. Forget about the amount – should I leave anything to my heirs? Unfortunately, but not surprisingly, there are no “correct” answers to ques- tions like this. As is often the case, familial circumstances and individual differences must be considered. So how does one go about determin- ing if bequests should be made to heirs? One general approach is to truly look at the bequest like a gift -- not an expectation or a right, but a gift that you wish to give to those you love and who are important to you. This may seems overly simple; how- ever, your estate is exactly that – yours. You’ve worked, invested and saved to accumulate assets. Giving any or all of it away is a deci- sion that should be made based upon your personal feelings about those who stand to receive your gifts. OK – then how much should I give to those I feel strongly about? Sorry, but an answer similar to the question above applies here … it depends. I encourage you to consider asking yourself the following questions. • What are the needs of my heirs? • For those who have dissimilar needs, is the difference because of circumstance, effort or a combination of both? • Should I help those who are strug- gling financially or with health or other issues more than the others? • How responsible have my heirs been with their own finances? • Do I think they can effectively handle or manage the gift that I am considering? • Should I give anything to my adult children who have been on their own for a while? • Should I give anything to my grand- children, or is that the responsibility of my children? • Will what I give my heirs ultimately be more harmful to them than if I gave them less or nothing at all? This list represents only the tip of the iceberg. The answers you provide will lead to other unique questions and issues about you, your family and those important to you. The results of your discussion and deliberations can, however, help you determine not only if and how much to give, but also how and when. What options do I have in terms of gifts for my heirs? While the simple bequest by will or trust is most common, there are so many options available that they could literally fill this entire publication. That said, following are some methods for making gifts from your estate: Lifetime -- While we have been focus- ing on gifts at death, we shouldn’t for- get about opportunities during life. You may give up to $11,000 per year or up to a total of $1 million during your life- time to as many individuals as you choose with no gift tax implications. Also, gifts to charitable organizations support essential programs and services and can also provide valuable income and capital gain benefits. Depending upon the size of your estate, individual and charitable gifts during life can also help minimize or eliminate estate taxes. Bequest -- Gifts through a will or trust (bequests) can be structured in several ways. Most common are the specific and percentage bequests. A specific bequest is often used when the donor wants to give a certain item or asset to an individual or organization. The per- centage bequest divides one’s estate between multiple heirs or beneficiary organizations. This is best utilized when the value of the estate is unknown, which is frequently the case. A contingent bequest can be either specific or a percentage but is contin- gent upon another condition before it can be made. For example, a bequest might be contingent upon the death of both spouses, the heir reaching a certain age or graduating from college. Beyond basic outright gifts during life and bequests upon your death, which by far constitute the majority of gifts made by individuals, there are a number of other assets and gift “vehi- cles” that you may wish to discuss with your estate or tax planning attorney, accountant or financial planner. Retirement plans -- Be wary here. While these assets make great gifts for charitable organizations, they do not necessarily make the best gifts for heirs. In a nutshell, gifts of retirement income to individuals other than the retiree HOW MUCH DO YOU LEAVE YOUR HEIRS? See HEIRS page 14 LEAVE A LEGACY 9
  • 10. 10 LEAVE A LEGACY Looking to the future with more visible bequest program ■ BY NIKKI NICHOLS A bright-eyed elderly man exits the passenger side of his daughter’s car and asks, “What is this place?” This place is Joy’s House, a renovated 19th century farm- house that has found a new life hosting Indianapolis-area adults who need supervised care during the day. Danette Siertle drops off her dad, Howard, at Joy’s House every Friday morning. It’s a routine that began almost a year ago, but Howard doesn’t ever remember his previous visits because Alzheimer’s disease has ravaged his 78- year-old mind. “He doesn’t know he’s lived in Indianapolis for two years. He thinks he’s just here on vacation,” said Siertle. Joy’s House opened its doors to guests like Howard in November 2000 after an ambitious fund-raising cam- paign. Now that Joy’s House has hit its stride, its founder, Tina McIntosh, is set- ting an eye to the future -- a future that includes a more visible campaign for bequests, and in turn, a more secure future for Joy’s House and the families it serves. Joy’s House, contrary to its name, was conceived after a number of person- al tragedies in the life of McIntosh. In October 1998, one of her best friends died. A month later, her father was beaten with baseball bats by a group of five men in Fort Wayne. The alterca- tion occurred when her father, an alco- holic for as long as she can remember, was intoxicated and walking home from a local bar. McIntosh was told her father would likely not live through the night. Funeral planning began. Her father’s condition, much to the astonishment of doctors, began to improve. McIntosh drove to Fort Wayne to take care of her father, with whom she had a strained relationship. Her two con- siderably younger siblings also helped. The long drive between Indianapolis and Fort Wayne could be arduous … but was also meditative. McIntosh had volunteered during college at a facility that provided day services to adults who could not be alone. Before long, the idea of starting a similar facility in Indianapolis began to blossom in her mind. “This whole concept of adult day services kept coming back to me,” recalled McIntosh. “I found myself praying a lot and during these drives, I started listening and questioning what the priorities were in my life.” McIntosh’s mother took her on a Bahamian cruise. Surrounded by the openness and serenity of the ocean McIntosh is so drawn to, she finally sur- rendered to the idea of opening her own adult day services center. She came home, quit her job as a suc- cessful event planner, set meetings with others in the industry, and began the journey that has brought so much joy to others’ lives. “My family and friends have always been very gracious,” she said. “Secretly I think most of them thought I had lost my mind. Joy’s House would not be here without their hard work and support, and it’s been amazing to me to see them go from simply supporting me out of love to becoming very passionate about the families we serve.” McIntosh’s enthusiasm was conta- gious, so much so that soon her friends became believers in the project. They helped network in the community and continue to inspire others to donate funds to the cause. The initial capital campaign brought in $115,000, with which Joy’s House bought the old farmhouse at 62nd Street just west of Keystone Avenue. With donations from Lowe’s Hardware and other local businesses, the house was brought to tip-top shape, in time to wel- come the home’s first guests. The guests are given supervised care throughout the day, with a small staff and volunteers. Each adult is given the respectful greeting of “Mister” or “Miss” before his or her first name. Guests have access to all the trappings of home -- comfortable furnishings, a tele- vision, and even a piano. Staff and volunteers lead stimulating activities, such as working in the sprawl- ing backyard garden. The garden is Mr. Howard’s favorite part according to his daughter. “He can out-garden me any day,” said Siertle, who said her father is still extremely physically fit. “When I saw the garden area, I knew he would be a perfect fit to help with this. Dad’s impression is that he’s there as a volun- teer. He feels like he has a purpose.” Joy’s House has the capacity to host 25 guests per day, and their families have started to rely on the great comfort Joy’s house has brought them. “I have two young children, and my children need me, too,” Siertle said. “I was using so much energy on my father that I didn’t have any energy left for the rest of my family. What Joy’s House does and knowing Dad’s there, I can shut down. I don’t have to worry about what would happen if he wandered away from home because he’s safe.” To ensure that this peace of mind can continue for local families well into the future, McIntosh and her supporters are crafting new ways to ensure sustainabil- ity of Joy’s House in an already crowded charitable marketplace. “I definitely think that exploring bequests is a great start,” McIntosh said. “In the end, we are a business and we have to ask for the support to continue to serve adults and their families.” To meet these needs, McIntosh says Joy’s House is trying to rely more on internal fundraising rather than asking JOY’S HOUSE OFFERS SAFE, LOVING SANCTUARY See JOY’S HOUSE page 13 McIntosh
  • 11. LEAVE A LEGACY 11 IRA ROLLOVER LEGISLATION INTRODUCED National Committee on Planned Giving urges Congress to act Reps. Wally Herger, R-Calif., and Earl Pomeroy, D-N.D., introduced the Public Good IRA Rollover Act (H.R.1607) in the U.S. House of Representatives April 12. This bipartisan legislation would allow individuals age 701/2 or older to contribute amounts cur- rently held in IRA accounts directly to qualified charities and individuals age 591/2 to make charitable gifts through split interest arrangements, without hav- ing to first recognize the income for tax purposes, and then take a charitable deduction. According to data compiled by the Investment Company Institute, nearly one-half of American households have IRA accounts, and there are about $2.5 trillion in those accounts and a similar amount in other qualified plan accounts that could be transferred to IRA accounts. In his floor statement, Herger noted that Congress has exempted withdrawals from IRA accounts under certain circum- stances, such as to finance the purchase of a home or a college education. He called on Congress to encourage older Americans to support charities by allow- ing withdrawals from their IRA assets without suffering adverse tax conse- quences. The National Committee on Planned Giving, which represents more than 10,000 charitable fundraisers and donor advisors, has long advocated for passage of the charitable IRA rollover legislation. Last session, the provision passed both houses of Congress as part of the CARE Act but was not enacted because of parti- san disagreements over the process to negotiate and resolve differences in the two bills. Tanya Howe Johnson, president of NCPG, said, “Generous individuals all over the country want to give excess Create a Legacy of Learning Designate a planned or estate gift and help the museum provide extraordinary learning experiences to children and families for generations to come. For more information, please contact Kelly Lamm at (317) 334-3206 or online at kellyl@ChildrensMuseum.org 3000 North Meridian St. • Indianapolis • ChildrensMuseum.org LutheranChild& FamilyServices Child OF INDIANA/KENTUCKY For every child or family in need, There’s a person who wants to give. We help them find each other. Your planned gift to Lutheran Child & Family Services of IN/KY can touch the lives of children and families of the future. Call 317-359-5467 for more information. www.lutheranfamily.org money in their IRAs to charity, but they are stymied by the complexity of the process and the prospect that their IRA contribution will not receive the same tax treatment as other charitable gifts. As philanthropists, they want to support charity, but as people who have worked hard for their money and are planning carefully for retirement, they want to be sensible about their giving, and they want their legislators to support them in that effort.” In his floor statement introducing the bill, Herger acknowledged the NCPG and other IRA charitable rollover coali- tion organizations. NCPG was instru- mental in providing research and infor- mation to Herger throughout the process of drafting and introducing this legisla- tion. President George Bush has endorsed the charitable IRA rollover and included it in his budget for fiscal years 2005 and 2006. ●
  • 12. 12 LEAVE A LEGACY ■ BY NIKKI NICHOLS The Indianapolis Symphony Orchestra is playing on a very high note these days. Of the 18 other full-time, professional orchestras in the United States, the ISO is one of the only orchestras with a balanced budget. How? With great effect, it takes 87 gifted musicians, thousands of loyal concertgoers, and successful drives to bring ticket holders into a more intimate rapport with the orchestra through vari- ous charitable giving vehicles. Fred and Jane Schlegel are two long- time patrons of the Indianapolis Symphony Orchestra who have been attending symphony concerts for 35 years. They are captivated by the orchestra’s energy brought forth by the many world-renowned conductors that have led the group. The most recent installment to the conductor’s podium is Mario Venzago, who in the Schlegels’ estimation, has brought a new verve to the concert- going experience. Fred, a partner at the law firm of Baker and Daniels, said, “Mario brings both quality and excitement. His posi- tive contribution is beyond question.” The Schlegels are more than audi- ence members, however. Through the years, they’ve volunteered and held leadership positions with the symphony. In addition to their volunteer work, they have made and pledged many charitable gifts to the orchestra. Among them, Fred has given a life insurance policy to the orchestra, and he and his wife together will leave bequests to the symphony in their wills. The Schlegels have also set up a charitable remainder trust. This type of trust allows that whatever is left of a trust set up in their wills after bequests are made will be divided and given to several local charities, including the ISO, the Indianapolis Opera, the Indiana Repertory Theater, and the Festival Music Society. Bob Swaney knows the Schlegels well. He works in the development office of the ISO, helping to facilitate those charitable gifts the symphony needs to keep going. He said the Indianapolis Symphony sets itself apart from other orchestras insofar as one third of the operating budget comes from charitable gifts. “We are in the smallest market among the 18 professional orchestras in the U.S., and it takes a lot of creativity year after year to balance those budg- ets,” Swaney said. “Philanthropy is huge. Most of those other full-time orchestras don’t rely on charitable gifts nearly much as we do.” Perhaps one reason the orchestra has maintained such success with sustaining the endowment is the variety of ways the public can make gifts. “We own the hall and the building, so there are naming opportunities for structural items like rooms and other things along those lines,” Swaney said. “Even the box office lobby has a name.” Swaney said an extremely intriguing option to many donors involves having a more personal connection to the orches- tra. This can be accomplished by endowing one of the orchestra chairs. In fact, 18 of the orchestra’s 87 chairs are endowed. The Schlegels’ planned gifts will endow the chair now occupied by prin- cipal violist Michael Strauss. “He’s a very enjoyable performer,” said Fred. “His musical skills are fantas- tic. His ever-present enthusiasm is engaging. He also has a great sense of humor.” Swaney said that some people have an existing relationship with the musi- cian, but it’s not unusual for donors to endow chairs occupied with musicians with whom they’ve had no prior contact. “If the donor doesn’t know the musi- cian, perhaps that person played the French horn, so he/she would want to be associated with the French horn player.” “Music is a wonderful, comfortable remembrance,” added Swaney. “Coming to hear the orchestra helps that surface again. When a naming opportu- nity comes along, donors can reconnect to something from 40 or 50 years ago.” Some symphony donors prefer to take a more behind the scenes approach to giving, choosing not to have their names added to programs or publicly displayed plaques. The ISO staff respects these donors’ wishes to remain private but always understands why oth- ers like to be recognized. “People like to connect themselves publicly to the institution, and it may potentially encourage others to give,” Swaney said. “People want to be associ- ated with a winner. People see it as strong motivator.” The ISO has found that focusing on a small number of planned giving vehi- cles works best. “Most people are comfortable with putting a bequest in their wills. The big task at hand is getting people to write a will,” Swaney said. Fred has advice for anyone who has given even the slightest thought to leav- ing a charitable gift or bequest to the Indianapolis Symphony Orchestra. “Just do it! Do it if you like Indianapolis or the ISO or both,” he said. “I view this as much a gift to the city as a gift to the ISO. Indianapolis without the ISO just wouldn’t be the same.” ● BEQUESTS HELP SYMPHONY PLAY ON Strauss
  • 13. LEAVE A LEGACY 13 Bequests keeping pace with nation, but there’s room to grow ■ BY NIKKI NICHOLS Charitable organizations need finan- cial assistance from people like you to continue their work. More than 80 per- cent of Americans contribute to the not- for-profit groups of their choice throughout their lifetimes, but only about 8 percent leave a gift to charity in their will. In Indiana, research shows that Hoosiers are keeping pace with the nation in both how many residents have a will and the number of wills that con- tain charitable bequests. According to the Associated Press, 42 percent of all Americans claimed to have a will in 2004. In a 2004 survey of Indiana residents taken by the Center on Philanthropy at Indiana University, 46 percent of Hoosiers indicated they have a will. Nearly 13 percent of Indiana residents in the survey indicated they currently have a charity named in their will, and another 23.4 percent would consider naming one in their will in the future. While the news is encouraging, the Indiana numbers still contain plenty of INDIANA BEQUESTS room for growth in both the need to write wills and the number of wills that contain charitable bequests. A further breakdown of the numbers shows a disparity in the giving trends of Hoosiers compared to the national aver- age, further underscoring the need for additional bequest awareness in Indiana and elsewhere. The following statistics, released in 2000, compare the estate gifts of Hoosiers to the national average. 2000 Indiana Bequest Statistics* • 2,143 Indiana residents left total estates of $3.6 billion, or 1.7 percent of the $217 billion total estates left in the U.S. • 358 Indiana residents made charita- ble bequests (gifts to charity through a person’s will) totaling more than $245.3 million, or 1.5 percent of the $16.8 billion bequeathed to charity. • The average Indiana estate was $1.7 million, compared to the U.S. aver- age of $2 million. • The average dollar amount of Indiana charitable bequests was $685,000, compared to the U.S. average of $932,000. • 17 percent of Indiana estates included a charitable bequest, compared to the U.S. average of 17 percent. • Among those who left charitable bequests, Indiana residents bequeathed 31 percent of their estates to charity compared to 28 percent of the estates for the average of those in the U.S. • 6.7 percent of the assets of all estates settled in Indiana were distributed in charitable bequests compared to 7.7 percent average of the U.S. It’s important to note that the amount indicated as bequeathed by Indiana resi- dents to charity does not necessarily stay in Indiana. Indiana not-for-profits also benefit from bequests to charity from estates settled in other states. The total amount bequeathed to chari- ty in Indiana does not reflect those planned gifts such as charitable remainder trusts, charitable lead trusts, foundations, etc., whose creation often results from estate planning. Changes in the federal estate tax will also have an impact on state tax revenues. ● *Indiana bequest data provided by the Forum of Regional Associations of Grantmakers, with data analysis provided by the Connecticut Council for Philanthropy. Source: IRS Statistics of Income Division. for grants from foundations and local corporations. “We see the support of foundations and corporations as a continual part of our budget but just not to a degree that it has been in the past,” she said. McIntosh is starting to consider ways to market other charitable giving vehicles to the community -- ways other than the usual, outright charitable gift of cash. Inspired by the LEAVE A LEGA- CY® initiative to begin more bequest marketing, McIntosh and two friends, Indianapolis attorneys Tammy Stevens and George Slater, hosted a special estate-planning workshop April 23. Both Stevens and Slater offered visitors free power of attorney forms and living wills and also offered to write a will for patrons free of charge if they agreed to leave a bequest of any size to Joy’s House. Sixteen families were represented at the event. This workshop is another example of how Joy’s House has given something to the community while also helping to ensure a bright future. And Joy’s House has brought a new kind of fulfillment to its founder. “I have learned that my little troubles are really nothing compared to chal- lenges that alter your life’s plans,” said McIntosh. “I learn not to complain to a 46-year-old man who has been living with multiple sclerosis about the cold that I have had for three weeks. It just doesn’t seem to compare, now does it?” While McIntosh revels most of all in the fulfillment derived by her husband and two children, along with the new- found sobriety of her father, she knows Joy’s House was a true calling sent to her in those troubled times. “I could see it, hear it, touch it, and I know it’s where God wants me to be.”● JOY’S HOUSE Continued from page 10
  • 14. WILL Continued from page 4 and/or spouse can have extremely neg- ative tax consequences – as high as 70 percent with combined estate and income taxes. For an individual who plans to leave equal amounts to his children -- one through a $100,000 bequest and the other as the beneficiary of a $100,000 IRA – he or she has potentially made two very different gifts. Depending upon the value of the donor’s estate and the income tax bracket of his children, the latter child may receive as little as $30,000 from the gift. Insurance -- Basic life insurance can be a good asset to give to both heirs and charitable organizations, particularly if you no longer need the policy. Wealth replacement insurance is another popu- lar option for those who want to give to both heirs and charity. Be sure to talk with a qualified insurance professional about options with your existing policies or about future needs for your heirs. What if I’m concerned about my heirs’ ability to handle money now? Many parents and grandparents strug- gle with this issue. If this is a concern, there are several charitable gift options that you to may want to consider. • Gifts to help my heirs attend college (Deferred Charitable Gift Annuity) • Support my heirs during their life time with regular and consistent income streams rather than a large lump sum (Charitable Gift Annuity or Charitable Remainder Trust) • Help charity now, then, when my heir(s) are older and more mature, have the gift “revert” back to them from the charity (Charitable Lead Trust) We’re ready to move forward with our plans. Where, and how do we get started? If you haven’t done so already, start by scheduling an appointment with a qualified professional advisor. This might be an estate planning attorney, accountant or financial advisor – or a combination of the three. These professionals can guide you through a process of understanding your assets and resources, your future needs and wants, and what you ulti- mately wish to do with what you’ve accumulated. If you’re not sure where to start, I encourage you to visit the gift-planning representative of a not-for-profit organ- ization that you support. They can help you think through some of these issues and refer you to professionals like those mentioned. In short, certain charitable gift vehi- cles can help you make gifts to your heirs and support charitable organizations. In the process, you get to experience the personal joy and satisfaction of giving. The final benefit – a tax savings for you – is truly the icing on the cake. Enjoy the opportunity to pass on what is yours. Giving should be a rewarding, enriching and enjoyable act. Give in a way that feels good! ● HEIRS Continued from page 9 14 LEAVE A LEGACY Battling affluenza Affluenza is a recently coined term that describes the potentially negative personal and societal affects that can result from an unhealthy relationship with money. According to the Affluenza Project, this social “disease” has been defined as “… a dysfunctional relationship with money/wealth, or the pursuit of it.” If you’d like to know more, visit the pro- ject’s Web site, (www.affluenza.com) or call them at (414) 481-1500. One method I’ve recently learned of to help fight affluenza is called “The Gifting Game.”Thisnewboardgameisdesignedto help families talk and learn about philan- thropy in a fun context and, in the process, develop and share their own beliefs about the value of money and charitable giving. To learn more about it, contact the Foundation Source at (800) 839-0054. General bequest language: “I give, devise, and bequeath to NAME OF CHARITY/LOCATION, the sum of $________(or a description of the specific asset), for the benefit of NAME OF CHARITY and its general purposes.” Residuary bequests Residuary bequests are made when you intend to leave the residue portion of your assets after other terms of the will have been satisfied. Residuary bequest language: “All the rest, residue, and remainder of my estate, both real and personal, I give to NAME OF CHARITY/LOCATION, for its general purposes.” Contingency bequests Contingency bequests allow you to leave a portion of your estate to a par- ticular charity if your named benefici- ary does not survive you. Contingency bequest language: “I devise and bequeath the residue of the property, real and personal and wher- ever situated, owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of ben- eficiary) does not survive me, I devise and bequeath my residuary estate to NAME OF CHARITY/LOCATION, for its general purposes.” Without a will, there is no mecha- nism in place to make a bequest, so here are the steps you should take to make sure your wishes are granted: • Make a list of organizations or caus- es that you would like to support. • Make a detailed list of your assets (financial, real estate, vehicles, jewelry, collectibles, musical instru- ments, etc.) • Schedule an appointment with your financial analyst or attorney, or planned giving officer at the organi- zation you intend to support. These professionals will help guide you through the process. ●
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  • 16. Alphonso Pettis is still making a difference. You can, too. “When I made this gift to the citizens of Indianapolis, I had only in mind something for those who had done so much for me.” Alphonso Pettis, first donor to The Indianapolis Foundation in 1920 In his will, Mr. Pettis left The Indianapolis Foundation more than $300,000. Over time and with superior investment, it is worth nearly $3 million today! This gift, when pooled and invested with others, provides at least $150,000 each year to local not-for-profits through The Indianapolis Foundation Community Endowment Fund. Make a lasting gift to The Indianapolis Foundation or Legacy Fund Community Endowment in your will or estate plan. Contact Central Indiana Community Foundation or your professional advisor for more information about charitable bequests and make a difference in our community – forever. p 317.634.2423 G www.cicf.org If you take charitable giving seriously, you need to know about us. . . . S ps .. S I Th INDIANAPOLIS II I F O U N D A T I O N L E G A C Y F U N D C E N T R A L I N D I A N A I COMMUNITY FOUNDATION I Inspiring philanthropy