1 PLANNED GIVING REPORT 2023-2024
DEAR ALUMNI AND FRIENDS: Students research how the brain processes information about its sensory environment in professor Michael Burger’s neurobiology lab. Cover: Innovation is a pillar of our identity. During Technical Entrepreneurship Week, Rossin College graduate students hosted peers from TU Dortmund University in Germany to develop commercial business models for emerging technologies such as thermal batteries and portable oxygen filters licensed from NASA and Lehigh’s patent pool. 2
3 In assessing Lehigh’s remarkable momentum, it is impossible to overstate the impact of the Tower Society. This philanthropic community has opened doors, elevated programs, and fueled innovation. Through contributions to financial aid and scholarships, we have made Lehigh more accessible to the most deserving students. Through endowed chairs and professorships, we have propelled Lehigh into the ranks of the most competitive research universities in the country. I hope you are as proud of these achievements as I am. This marks my last year as chair of the Tower Society. It has been my distinct pleasure to serve my alma mater in this way. The progress we have generated through our collective action inspires me and fills me with profound hope for what comes next. It is my distinct pleasure to pass the baton to my longtime friend, Kevin Clayton ’84 ’13P. With his leadership and your generous support, Lehigh’s already formidable ability to prepare students to lead lives of impact will only become more impressive. Planned giving is a philanthropic strategy that can have tremendous benefits for institutions and individuals. In the following pages, you will learn more about the diverse opportunities to protect your assets through tax-wise vehicles while supporting Lehigh on a foundational level. When you make a planned gift to Lehigh, you safeguard its ability to continue its long tradition of molding innovators and leaders. A planned gift joins personal and institutional legacies. It honors a shared history and creates a blueprint for a bold future. Lehigh is in the midst of a transformational moment, one that would not be possible without you. By investing in Lehigh’s future, you have ensured that its mission endures for generations. Your commitment has created opportunities, inspired growth, and made a lasting difference in the lives of countless students and faculty. Thank you for everything you do for this great university. With warmest regards, Mike Caruso ’67 Chair, Tower Society Earlier this year, The Wall Street Journal ranked Lehigh #15 among the top 500 universities in the country. While I was excited by this news, I was not surprised. The present climate has challenged higher education, yet Lehigh continues to soar above by remaining committed to its values and preparing students to lead productive lives in service of society. Because of your enduring support, Lehigh is poised to reach even greater heights. As assistant vice president of planned giving and family philanthropy, I am privileged to hear many inspiring stories about Lehigh’s role in shaping the lives of graduates and the trajectories of their families. Mike Caruso ’67, who has chaired our Tower Society for 14 years, exemplifies how Lehigh transforms lives. Through his leadership and generosity, Mike has helped transform Lehigh. As he completes his tenure, we extend our deepest gratitude and warmly welcome Kevin Clayton ’84 ’13P, who will carry forward this important work as the new Tower Society chair. At its heart, planned giving is about building the future. A planned gift offers a special opportunity to create something lasting that reflects your values and experiences at Lehigh while nurturing the growth and success of students on campus. Whether you choose to support financial aid, athletics, or a specific program, your planned gift ensures that Lehigh continues to excel in preparing students to lead in tomorrow’s world. In the following pages, you will learn about the various planned giving vehicles that allow you to create a lasting legacy, protect your income, and make a tangible impact at Lehigh. You will also read about Mike and Kevin and learn the names of other planned giving donors whose bequests were realized this past year. We are deeply grateful for their generosity as they share their values and memories with our community. My team is honored to help alumni and friends create lasting legacies at Lehigh. We’re here to answer any questions you may have about planned giving and look forward to hearing how Lehigh has shaped your life. Thank you for all that you do for Lehigh. With kindest regards, Lorraine Wiedorn ’84G ’13P ’17P Assistant Vice President, Planned Giving and Family Philanthropy
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Outfielder Brooke Cannon ’24 helped lead the softball team to the final of the Patriot League Tournament in Boston. On and off the field, Lehigh’s student-athletes embody grit, perseverance, and the unyielding pursuit of progress. 5 ...................................................... ........... .................................................................. ................................................................. ................................... ................................................................. ............................................................................. TABLE OF CONTENTS Planned Giving Overview 6 Planned Giving Total Assets Under Management 7 Realized Bequests 9 A Lehigh Legacy: Mike Caruso ’67 10 Gift Annuity Disclosure Statement 12 Board of Trustees 14 Contact Us 15
6 PLANNED GIVING OVERVIEW One of the most popular ways to make a gift now, without reducing your income, is through Lehigh’s Planned Giving Program. The following types of life income gifts are offered to help you provide meaningful support to Lehigh while also addressing your personal financial goals and plans. Charitable Gift Annuity Lehigh offers both immediate and deferred payment annuities. A person who enters into a gift annuity agreement with Lehigh is accomplishing two goals — making a gift to Lehigh and securing a fixed income for life. In the case of a deferred payment annuity, the person agrees to wait one or more years before life income payments start in return for a higher annuity rate than the immediate annuity payment offers. Lehigh follows the annuity rates established by the American Council on Gift Annuities, a national organization of charities that offer gift annuities. The council reviews rates every two years, at which time rates may be changed for new gift annuities. The annuity rates are lower than those offered by commercial annuities, but donors have the satisfaction of obtaining a charitable income tax deduction, should they itemize, for part of the gift’s value as well as doing something of lasting benefit for the university. The rates have been computed to produce a “residuum,” or gift to Lehigh at the agreement’s expiration, which is on average 50% of the initial contribution. The rates are based on actuarial tables of mortality experience among gift annuitant lives and consideration for the income rate expected from the invested reserve funds. Beneficiaries receive monthly annuity payments for life according to the terms of a simple contract. These payments are fixed and guaranteed by the university’s revenues and assets. Information may be found at plannedgiving.lehigh.edu. Pooled Income Fund Lehigh’s pooled income fund is an irrevocable trust fund that operates similarly to a mutual fund. Contributions are pooled under the trusteeship of Lehigh. All income earned by the fund in each quarter is paid out to the participants in pro rata shares. All dividends and interest must be paid out to life beneficiaries. The terms of the gift are irrevocable, and Lehigh ultimately receives the principal. Charitable Remainder Trusts These gift vehicles are individually managed portfolios managed by Lehigh or a trustee you choose. These include charitable annuity trusts, charitable lead trusts, and charitable remainder trusts. A charitable remainder trust pays the life income beneficiary a percentage of the fair market value of the trust assets as revalued annually. This fixed percentage, no less than 5% (as dictated by the IRS), is determined jointly by you and Lehigh’s Treasurer’s Office when the trust agreement is prepared. Income is paid quarterly.
7 Students in the Lehigh University Philharmonic Orchestra often perform alongside music faculty and community members from other fields such as engineering, economics, and chemistry. Our commitment to hands-on, interdisciplinary learning is what propels Lehigh students to GO Beyond. Planned Giving Total Assets Under Management Fiscal year ending June 30, 2024 TYPE OF GIFT MARKET VALUE NUMBER OF PARTICIPANTS Charitable Gift Annuities 20,081,025 198 Pooled Life Income Funds 10,136,816 28 Charitable Remainder Unitrusts 10,609,298 15 Funds Held in Trust by Others 4,673,961 10 TOTAL PLANNED GIVING ASSETS $45,501,100 251
8 As founding chair of Lehigh’s bioengineering program, Vice Provost for Research Anand Jagota champions innovative approaches to education. Currently, Jagota’s lab is engaged in research projects focused on solutionbased processing of carbon nanotubes, the biomimetics of fibrillar adhesion, and adhesion and mechanical properties.
9 REALIZED BEQUESTS The Office of Planned Giving and Family Philanthropy recognizes the following individuals who together in fiscal year 2024 provided $11,474,294 for Lehigh through their estates and bequests. Their visionary gifts support a strong tradition of philanthropy at Lehigh and are invaluable to future generations of students. We are forever grateful for the programs they have supported through their generosity. In fiscal year 2024, the following bequests were received for restricted purposes. Virginia Lyon Anderson 1926W Anderson and Lyon Memorial Fund Irvy T. Barker 1963 Irvy and Sharon Barker Scholarship Fund George E. Barnes 1966 Global Studies William A. Clark 1945 Ann and William A. Clark ’45 Scholarship Webster Dawley 1949 Webster Dawley ’49 Endowment Fund Carol D. DeYoung 1956W Carol and Adrian DeYoung ’56 Endowed Scholarship Fund Elinor Georgopulo 1942W Panos B. Georgopulo Memorial Scholarship Barry W. Haacke 1964 Barry W. Haacke ’64 Bequest for the College of Business Bernard R. Hale 1930 Bernard R. and M. Virginia Hale Endowed Scholarship Percival L. Hallowell 1918 Hallowell Memorial Scholarship John J. Harmon 1959 1983P President’s Capital Projects Fund Mary Jo Hill Mary Jo Hill Museum Operation Fund for Preservation of the Collection Donald M. Jackson 1964 Department of Industrial and Systems Engineering Allan Judson 1950 College of Arts and Sciences Suzanne V. McClurg 1959W Endowed Faculty Development Fund Walter Moran 1952 The Walter L. Moran Scholarship Fund Lillian T. Savage Lillian Taylor Savage Endowed Scholarship Fund John C. Sebastian 1996P Michael C. “Bear” Sebastian Endowed Choral Arts Fund Allison V. Smith Oliver Hobson Smith Endowment Fund Richard W. Stoeltzing 1950 Lehigh Fund Michael A. Vianello 1962 Michael A. Vianello ’62 Endowed Fund for Biological Sciences Biddle A. Whigham 1948 Biddle A. Whigham Scholarship Fund The following individuals left unrestricted bequests to the university. William R. Brainerd 1960 Phyllis J. Carter Joel L. Caves 1980G Robert R. Cockley 1948 Edward K. Delany 1958 Millicent Jane Drake Robert W. Giess 1961 Julius M. Herz Andrew Donaldson Robb 1951 1952 Ernest H. Spillar 1949 Franklin S. Tirsch 1973 William Toikka 1962 John A. Wittner 1967 A. Tobey Yu 1949G Frederick Richard Zellner 1968
10 A LEHIGH LEGACY: Mike Caruso ’67
11 When Mike Caruso ’67 talks about Lehigh, he radiates gratitude. “Without a scholarship, I couldn’t have attended Lehigh and benefited from an experience that changed the course of my life,” Caruso says. Through academics and athletics, he gained the confidence and skills that allowed him to flourish. At Lehigh, Caruso was a standout wrestler, a three-time NCAA champion who finished his career with a 57-1 record. He credits legendary coach Gerald Leeman with his success on and off the mat. “He was such a great leader, a mentor, and such a great friend,” Caruso says. The two remained close over the years. In 2008, a week before Leeman passed away, Caruso visited him in the hospital. “You keep this thing going at Lehigh so that my life’s work was not in vain,” the coach said. Caruso, who delivered Leeman’s eulogy, possesses the same staunch devotion to Lehigh. He got involved with the Tower Society nearly four decades ago when he spearheaded an effort to raise funds for merit scholarships for wrestling. He has chaired the society for the last 14 years, leaving an indelible mark on Lehigh through his leadership and generosity. “Mike lives what he has always said as chair of the Tower Society,” says Lorraine Wiedorn ’84G ’13P ’17P, assistant vice president of planned giving and family philanthropy. “If you believe in something, you need to endow it.” The Michael “Baskets” Caruso Memorial Scholarship Fund, which Caruso established in memory of his father, and the Caruso Family Memorial Scholarship Fund, in memory of Caruso’s beloved late wife and sister, are two of his many impactful contributions. Caruso officially concluded his tenure as chair at the Tower Society Breakfast in September. During the meeting, President Joseph J. Helble ’82 recognized the unprecedented growth that Lehigh’s endowment has gained under Caruso’s leadership. The endowment principal has received $329 million, of which $51 million was given through life income gifts. An additional $226 million in bequest intentions have been made, 90% of which will benefit the endowment. “In one-on-one meetings and large groups alike, I have often heard Mike speak about how Lehigh changes one’s life,” Helble says. “Hearing these numbers, there is no doubt of the impact that Mike has had on this institution. He has changed Lehigh for the better.” Kevin Clayton ’84 ’13P succeeds Caruso as chair of the Tower Society. “Just like everything else Michael has done, his leadership at Lehigh has put him in the hall of fame,” Clayton says. “I am humbled to follow in his footsteps.” The mutual respect between the two friends runs deep. “Kevin learned from his father, Bill, what it means to serve Lehigh. He’s been involved since his student days and has held every volunteer position, including interim president,” says Caruso. “He represents the next generation of philanthropists who will take Lehigh to even greater heights. The name Clayton is as well known to the Lehigh faithful as the name Packer.” As the Tower Society torch passes from one great leader to another, there is no question that its flame — and the future it lights for generations of Lehigh students — has never been brighter. Mike Caruso ’67 was a three-time All-American. Gerald Leeman and Mike Caruso ’67 Kevin Clayton ’84 ’13P and Mike Caruso ’67
12 GIFT ANNUITY DISCLOSURE STATEMENT This disclosure statement is intended to provide basic information regarding the gift annuities issued by Lehigh and is not intended to serve as legal advice. We encourage you to consult with your own legal and/or financial advisor about the applicability of such a gift in your own situation. • Description of a Gift Annuity | A gift annuity is a simple contract between the donor(s) and Lehigh University (hereinafter “Lehigh”). In exchange for the donor’s(s’) contribution(s), Lehigh promises to make fixed payments for life to one or two annuitants [usually, but not necessarily, the donor(s)]. The amount paid is based on the age(s) of the annuitant(s) in accordance with Lehigh’s rate schedule. • Not a Commercial Investment | The act of establishing a gift annuity with Lehigh is not, and should not be viewed as, an investment. Rather it is a way to arrange for annuity payments while making a charitable donation. In this respect, a gift annuity issued by Lehigh is different from a commercial annuity. While both types of annuities make payments that are usually partially tax free, the charitable donation aspect of establishing a gift annuity may result in additional tax benefits that are not available when purchasing a commercial annuity. These tax benefits include a current federal income tax charitable deduction (if you itemize your deductions) and possible future estate tax savings. • Gift Annuity Rates | The gift annuity rates paid by Lehigh are those suggested by the American Council on Gift Annuities, a national organization of charities formed in 1927. These rates have been calculated to provide attractive payments to the donor(s) and/or other annuitant(s) and also to result in a significant portion of the contribution remaining for the charity. Because a charitable gift is involved, the rates are lower than those available through commercial annuities offered by insurance companies and other financial institutions. • Assets Backing Annuity | The annuity payments are a general obligation of Lehigh, and they are backed by all of our assets (subject to security interests). As of June 30, 2024, the market value of our total invested funds exceeded $2 billion. We also maintain a gift annuity reserve fund valued at more than $11 million in accordance with the laws of the states in which we issue gift annuities. Assets received by Lehigh for gift annuities are managed internally in a conservative and disciplined manner. If Lehigh should ever fail financially, individuals entitled to receive annuities will qualify as general creditors of Lehigh. • Governance | Responsibility for governing Lehigh, which was established in Pennsylvania in 1865, is vested in a board of trustees. Common investment funds managed by our organization are exempt from registration requirements of the federal securities laws, pursuant to the exemption for collective investment funds and similar funds maintained by charitable organizations under the Philanthropy Protection Act of 1995 (P.L.10462). Information in this statement is provided to you in accordance with the requirements of that act. Points to Remember • A contribution for a gift annuity is irrevocable. • The right to annuity payments may not be assigned to any person or organization other than Lehigh. • The gift date is the date when you actually transfer assets. In the case of cash, it is the date you mail or deliver a check. In the case of an electronic transfer of securities, it is the date they are received into the account of Lehigh. If you have certificates, it is the date they are properly endorsed and mailed or delivered. • The gift annuity is governed by applicable state laws.
13 In the “Defend the Republic” drone competition, Lehigh and seven other universities vied to capture floating helium balloons with autonomous robots in Building C on the Mountaintop Campus. Description of Reserve Gifts to the annuity program are invested in accordance with state requirements. The assets held generate income to distribute to beneficiaries and provide a reserve of capital, if needed, to make up the difference between the income earned and the required distributions. Upon the termination of the life interests covered by a given contract, a proportionate share of the entire reserve is applied to the purpose outlined in the original gift annuity agreement. At maturity, the contract balance is invested in the endowment fund. Lehigh has completed applications for all states with annuitants and all state requirements for registration of gift annuity programs. On June 30 each year, Lehigh performs an internal review of our gift annuity reserve compared to the total reserve assets to the present value of the reserve’s liabilities. Our reserve assets at June 30, 2024, are well in excess of the present value of its liabilities.
BOARD OF TRUSTEES Finance Committee Fiscal Year 2024 Members Jordan Hitch ’88 ’20P ’21P (Chair) Former Managing Director Bain Capital LP Jeffrey Bosland ’88 ’23P Former Senior Managing Director Cerberus Capital Management LP Jay Clayton Senior Policy Advisor and Of Counsel Sullivan and Cromwell LLP Eric A. Clement ’99 Senior Vice President and Fund Manager RXR Realty LLC James H. Garrett Jr. Provost and Chief Academic Officer Carnegie Mellon University Christopher D. Hite ’89 ’20P ’24P Executive Vice President and Vice Chairman Royalty Pharma Mary T. Kush ’88 Principal Douglass Winthrop Advisors LLC Sarat Sethi ’92 Managing Partner Douglas C. Lane & Associates LLC Erika J. Smith ’99 Dean of the College Connecticut College Investment Committee Fiscal Year 2024 Members Mary T. Kush ’88 (Chair) Principal Douglass Winthrop Advisors LLC Maria L. Chrin ’87 ’10P Founder and Managing Partner Circle Wealth Management LLC Jay Clayton Senior Policy Advisor and Of Counsel Sullivan and Cromwell LLP Jordan Hitch ’88 ’20P ’21P Former Managing Director Bain Capital LP Christopher D. Hite ’89 ’20P ’24P Executive Vice President and Vice Chairman Royalty Pharma Daniel R. Pietrzak ’97 ’28P Co-President and CIO FS/KKR Advisor LLC Jon Owsley Managing Partner L Catterton Gregory G. Stahl ’92 Chief Investment Officer Dock Street Capital LLC Christopher M. Scott ’94 Managing Director and Head of U.S. Residential Mortgages Morgan Stanley 14
CONTACT US Please share with the Office of Planned Giving and Family Philanthropy any questions or comments you may have about the information within this report. Our planned giving team can also help you explore the different gift options available to integrate your passion for Lehigh with your personal financial goals and plans. Office of Planned Giving and Family Philanthropy (610) 758-4749 Lorraine Wiedorn ’84G ’13P ’17P Assistant Vice President (610) 758-4874 lms1@lehigh.edu Carl Henzelman III ’82 Senior Director (610) 758-5520 cfh207@lehigh.edu Molly Driscoll Associate Director (610) 758-4974 mkk322@lehigh.edu Kimberly Hansen Coordinator (610) 758-4749 kasb16@lehigh.edu Jennifer Nelson ’90 ’92G has been appointed associate vice president for principal gifts at Lehigh University, effective October 14, 2024. Nelson will lead efforts around principal gifts, planned giving, and family philanthropy, further advancing our institution’s ambitious $1.25 billion GO Beyond campaign. “In a time of great momentum, Lehigh is uniquely positioned in the higher education landscape to set ourselves apart. Building a program and leading a team that will spearhead this growth is near and dear to my heart and excites me beyond words.” FOR MORE INFORMATION Planned Giving Website and Online Gift Calculator: plannedgiving.lehigh.edu A practical guide to assist you in gift planning is available online. This useful site features an easy-to-use Online Gift Calculator that enables users to receive fast, accurate, and confidential calculations on charitable deductions. The Online Gift Calculator allows users to determine their planned gift deductions and gift annuity taxation amounts. 15
16 THE CAMPAIGN FOR FUTURE MAKERS
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