Ann Garvey: Values Matter When it Comes to Giving

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Ann Garvey, vice president for student affairs, is planning to create a scholarship for Augsburg students with funds from her IRA.

Ann Garvey, Augsburg's vice president for student affairs, has invested much of her life in the College she has been a part of since 1998. As a member of the President's Cabinet, Ann holds responsibility for what she jokingly calls the ‘care and feeding' of all undergraduate and graduate students.

As an extension of her deep commitment to the College, she designed her estate plans to include a specific percent of her Roth IRA (rather than a dollar amount) for scholarships for Augsburg students.

"I wouldn't characterize myself as adventurous when it comes to investments," Ann laughs. "Augsburg is very important to me, but I don't know what my future needs will be." She also hopes to make a lump-sum gift if her circumstances allow.

Investing in Hope

"[Making this commitment for scholarships] propels forward something that is important to me," Ann says. She sees firsthand the stress of paying for college causes students and families.

"When I was in college, the average cost was 10 percent of a family's average income. Today, it's 40 percent," Ann says. That reality is hard for someone who sees education as a hope industry. "Education helps people live better lives in all sorts of ways," Ann says.

Over the past 30 years, Ann has held a variety of positions in student affairs. She's pleased to see the College fully embracing and celebrating its urban location and its commitment to intentional diversity. "The curriculum engages the city in a variety of different ways," Ann explains, noting the College actively pursues partnership with people and resources. "Augsburg is always evolving."

Values-Based Philanthropy

The daughter of an attorney and a social worker, Ann places a high value on philanthropy, volunteerism and, of course, education; values she saw in action while growing up in Eau Claire, Wisconsin. "I saw my parents involved in the community, their church, the Boy Scouts...they made financial gifts, but they also volunteered as much as they were able," Ann says.

When Ann's father died a few years ago, she learned he had made estate gifts to several charities that were important to him. She learned her mother, who is still living, has made similar arrangements. That knowledge got her thinking, and she wondered what her own philanthropic contribution could be. "I'm at that age when people start getting lots of calls about planned giving," Ann laughs. "This is when people start thinking about retirement and their legacy-what mark they want to make."

Future Plans

"I hope to live long enough and do well enough to endow a scholarship while I'm still alive," Ann, who also supports the Augsburg Fund and other College initiatives, says. Ann is already doing better financially than she expected. "I never thought I'd live long enough to see same-sex marriage," Ann says.

She did all of her retirement planning based on being legally single her entire life. When Ann married her partner in 2013, the change in legal status impacted her financial future, but the importance of estate planning remains the same. "I'm just dipping my toes into philanthropy, and plan to look at other options for giving," Ann says.

A charitable bequest is one or two sentences in your will or living trust that leave to Augsburg University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Augsburg University, a nonprofit corporation currently located at 2211 Riverside Ave., CB 142, Minneapolis, MN 55454, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Augsburg University or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Augsburg University as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Augsburg University as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Augsburg University where you agree to make a gift to Augsburg University and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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