GENEROUS AND DEVOTED alumni often wish to give something back
to the GSB in return for the rewards of their education. One way
to do so is through a planned gift. Such gifts include bequests
and a variety of charitable life income plans.
Both have significant advantages. Bequests to the university help
reduce estate taxes, and for some people, willing assets after
their death is the only way they can make a significant contribution.
Life income gifts allow the donor to give something back to themselves
as well as the university. In addition to an immediate charitable
tax deducation, the donor can often retain or even increase the
return from an asset through such a gift. Three examples demonstrate
the power of planned gifts.
The simplest and perhaps best-known form of planned gift is a
bequest, like the one from
Jim Powers, A.B. 50, M.B.A. 53. Powers remembered with gratitude how his
Chicago education shaped his life, and planned for years to will
a portion of his assets to the GSB upon his death.
Powers, an Alabama native who enjoyed a long career as a certified
public accountant, died in November, 1997. This spring, his family
returned to campus to plant a tree in his memory and present the
GSB with a $50,000 check.
His university and GSB experiences gave Powers an education, a
career, lifelong friends, and his wife, Dorothy. They met while
she was pursuing a masters degree in bacteriology and married
on campus in 1953.
"The University of Chicago, and the business school, really opened
up the whole world to him. There was not an intellectual tradition
in his family [so] his exposure here was just wonderful," his
He joined Peat Marwick and handled major accounts like J.C. Penney
and Singer sewing machines, ultimately retiring as partner in
charge of KPMG. He remained involved with the school as an active
alumnus and fundraising volunteer. He was proud when his daughter,
Victoria, chose to attend Chicago and earned her bachelors degree
in 1980. He also maintained friendships with the southern boys
hed bonded with while suffering together through cold Chicago
"He found work that he loved, and the university steered him there.
And for that he was always very grateful. He remembered with gratitude
how it shaped his life, and he wanted to share some of it, give
it back to students coming after him," his wife says. "It was
probably 20 years ago that he started talking about leaving a
gift to the school. He stipulated that the money could be used
in any way Professor [Sidney] Davidson (then Dean) saw fit." His
bequest was fully deductible for estate tax purposes.
Robert Appelbaum, Ph.B. 47, M.B.A. 50, decided to get more mileage from his
individual retirement account by naming the university as the
beneficiary. The gift was wise estate planning, he says.
"My wife and children are taken care of," Appelbaum explains ,
"and my children would only get about 22 cents on the dollar after
taxes" from anything left in the IRA. "Really, its just common
sense to do this."
The current tax system makes it difficult to leave a qualified
retirement plan401(k), 403(b), Keogh Plan, or IRAto individuals
other than ones spouse. Funds remaining in the plan upon the
individuals death can be subject to significant income and estate
taxes. Using plan assets for a charitable gift may allow money
that would otherwise go for taxes to support a charity instead.
Appelbaum, who is chairman of Penguin Frozen Foods, the suburban
Chicago company he began in 1950, says he chose to give to his
alma mater because he believes in the University of Chicago. "The
longer Im out of there [the university], the more I appreciate
it," Appelbaum says. "Its really a great institution; it gave
me a foundation. And I believe education is the great equalizer."
Appelbaum began considering his gift six years ago. "We think
were immortal," he says with a chuckle, "but Im glad Ive got
it taken care of." He encourages others to consider this type
of planned giving.
"Everybody who has any estate whatsoever should think about this.
If you leave [retirement funds] to their family, theyll end up
with so little," he adds. "Instead they can do infinitely more
with a charitable contribution."
Robert Nagel, 63, has used a different type of gifta deferred payment charitable
gift annuityas part of his personal financial planning. He gave
appreciated securities to the university for the benefit of the
GSB, in exchange for an annuity that will pay a fixed income for
the rest of his life after he reaches age 65.
In honor of his gift, the GSB will name the faculty office suites
at the Gleacher Center for Nagel. This amenity, he says, would
have made his life much easier when he was a guest lecturer in
the 190 program. "When I taught for Dick Thain [former senior
lecturer at the GSB], they were always moving people around so
that I could have a desk, make a phone call, get ready to teach,"
he recalls. "The idea of having the luxury of a faculty office
is just wonderful. I saw a great need for it, and I wanted to
support something near and dear to my heart."
Nagel regularly contributes to the Annual Fundhe has served as
Deans Circle Fund chairman for several yearsbut he wanted to
provide an additional gift. The annuity also made good financial
sense and reflected his gratitude to the GSB.
"Financially, this was a good opportunity for me to realize paper
profits," explains Nagel, who is president and CEO of Chicago
consulting firm Newport Associates Inc. "But I would not have
been in this situation, in the job where I accumulated wealth
I could share, if I hadnt gotten the Chicago M.B.A." He claimed
an immediate, substantial income tax charitable deduction in the
year he made the gift; when he begins to draw the annuity, a portion
of the income will be tax free.
Nagel decided on an annuity because the rate was attractive, he
said, and the university manages its money well. "I saw it as
a good way to support the school and make a good investment,"
he says. "Id like to encourage other people to do this as well."
There are many types of charitable life income plans that can
provide income to the donor and immediate benefits to the school.
Donating appreciated assets can also be a valuable strategy to
consider as part of lifetime financial planning and estate planning.
For more information on planned gifts, contact Reginald Best in
the GSB Development Office at (773) 702-7571.