Winter 2009

Winter 2009 Newsletter

A Lifetime of Returns

“Looking back, Andover provided a major confidence-building boost that sustained me throughout my undergraduate years. That one year at Andover was, for me, a key educational experience,” says Rod Lancey ’47.

Image Left: Rod and Mary Lancey with Keyshawn

Before arriving at Andover in 1946 for a post-graduate year, Rod served in the U.S. Navy. “When I returned home, my father suggested that Andover would help prepare me for college,” says Rod, who quickly became engrossed in math and science courses. “Faculty member Rocky Dake was a wonderful influence and helped to guide me into a career in engineering,” explains Rod. Following Andover, Rod earned both his BS and MS degrees in chemical engineering from Worcester Polytechnic Institute and later received his MBA degree from Harvard University.

Though only at Andover for one year, Rod believes the Academy’s rigorous courses and the exceptional mentoring he received from its faculty provided the foundation for his career and his life. In gratitude, Rod and his wife have each made bequests through their wills to Andover—as well as to other educational institutions that have most significantly influenced them. Additionally, they have established several Andover gift annuities through which they have generated fixed income for Rod’s and Mary's lifetimes and immediate income tax deductions. Following their lives, the remainder of the annuity passes to Andover. “Our gift annuities represent, in part, an acceleration of our estate giving while providing income and tax benefits during our retirement years,” says Rod.

To learn how you could benefit from an Andover planned gift, contact David Flash, director of gift planning, at 978-749-4297 or dflash@andover.edu, or Connie Pawelczak, assistant director of gift planning, at 978-749-4529 or cpawelczak@andover.edu.

The Faces of Andover Gift Planning

Andover’s gift planning office has three committed team members ready to help alumni, parents, faculty, and friends with their gift planning needs. With more than 20 years of combined planned giving experience, the team helps donors understand the tax and income benefits for themselves, as well as their heirs.

Image Left: David Flash and Connie Pawelczak

Connie Pawelczak, our newest addition, is the assistant director of gift planning. She previously served as a planned giving officer for the Museum of Fine Arts in Boston. “I enjoy gift planning for the opportunity it provides to develop relationships with donors who want to benefit the institution and themselves for many years to come,” says Connie. “I am eagerly becoming immersed in the culture and heritage at Andover, as well as getting to know its people.” No stranger to academia, Connie has worked at Chapel Hill-Chauncy Hall School in Waltham, Mass., and was a teacher as well as manager at Digital Equipment Corporation for many years. A musician by training, Connie serves as accompanist and choir member at her local church in Chelmsford, Mass.

David Flash, the director of gift planning, has been with the Academy since 2001. “Being at Andover has been a wonderful fit for me,” says David. “The academic program is extraordinary, and it is a privilege to work with those who wish to support our students and the fine work of our faculty. I’ve met many remarkable people over the years and seen extraordinary examples of non sibi.”

Prior to his arrival, David was the deputy director of gift planning at Harvard University’s Faculty of Arts and Sciences. He is quite familiar with the independent school environment; he was a faculty child at Loomis Chaffee—his alma mater—where his father served on the faculty for more than 30 years.

The Retained Life Estate

Andover Planned Gift Generates Bigger Tax Benefits Thanks to Record-Low Interest Rates

While it may be difficult to find a silver lining in the dark cloud that is the current economic situation, several Andover planned gift arrangements are even more attractive in light of the current low interest rate environment. The reason? The discount rate, a factor used by the IRS in determining the value of tax deductions, which changes each month depending on market fluctuations. When this rate is low, some arrangements generate even larger tax benefits.

The Retained Life Estate: “I call this the ‘having-your-cake-and-eating-it-too’ option,” says David Flash, the Academy’s director of gift planning. Through a retained life estate, a donor is able to give property, most often real estate, to Andover while retaining the right to the property for the rest of his/her lifetime and the lifetime of a spouse. The donor is responsible for related property tax and reasonable upkeep while alive. At the time the donor enters in the agreement, the IRS provides an immediate charitable income tax deduction. “Entering into a retained life estate arrangement with real estate does not bind the donor to remain in the property for the rest of his or her lifetime,” adds David. If a donor later wishes to move elsewhere, the Academy will arrange to sell the property, and the donor will be given a portion of the sale proceeds.

Because of the current record-low interest rate, the tax deduction value of a retained life estate is higher than it ever has been. For example, a 72-year-old donor who created a retained life estate in September 2007 with a property worth $500,000 would have generated an immediate charitable income tax deduction of $235,000. Today, a donor of the same age would generate a charitable income tax deduction of $341,000—45 percent higher than what was already a historically high deduction.

For those who wish to support Andover through their estate while receiving a significant financial benefit now, this is a great time to consider a retained life estate. Other smart gift arrangements in the current economic climate are the charitable gift annuity and the charitable lead trust. To learn more about how you could benefit from any of these arrangements, contact David Flash at dflash@andover.edu or 978-749-4297 or Connie Pawelczak, assistant director of gift planning, at cpawelczak@andover.edu or 978-749-4529.