1 PLANNED GIVING REPORT 2022-2023
DEAR ALUMNI AND FRIENDS: Cover: Our community is one of Lehigh’s central strengths. Inspired by our proud traditions, such as the Rally, generations of students and alumni come together to build Lehigh’s future. 2 Innovation and creativity drive Lehigh’s hands-on education. We know that the next generation of Future Makers is here on campus. Your support means that they can continue working in labs and studios that help all of us better understand the intersection of technology and human work.
The Tower Society fuels Lehigh’s momentum forward and emboldens our community to build the university’s future together. Such an effort demonstrates our shared investment and care in shaping Lehigh now and for generations of students that follow. Whether it is providing much-needed financial support to more than half of our exceptional undergraduates or helping Lehigh recruit and retain top research talent through endowed faculty positions, this collective action helps Lehigh provide students with an education that prepares them for success after graduation. The ideals and memories made during our time at Lehigh proudly exist today because of all our efforts and care. I hope you feel the same deep sense of pride that I do when reflecting on our progress. As chair of the Tower Society, I am humbled by what we do to build Lehigh’s future. In the face of ongoing discussions about the role of higher education today, Lehigh remains dedicated to shaping successful students into bold leaders and innovators who will shape tomorrow’s world. Driving that success and commitment is the strength and stability of Lehigh’s endowment and the people who support it. Lehigh’s community has always paired innovative ideas with decisive action, and the Tower Society exemplifies that exceptional quality. I have long believed that planned giving is a communal endeavor that helps both individual and institutional financial futures. In what follows, you will read about the diverse opportunities to protect your individual assets and enshrine the Lehigh experience that shaped you for generations to come. When you make a planned gift to Lehigh, you ensure that every Lehigh student succeeds in laying strong foundations for bold lives and careers. Their success is due in part to your forethought and planning. Thank you for your support of Lehigh and its students, faculty, and programs over the years and today. Together, we ensure that our momentum continues well into the future, making Lehigh an exceptional experience for all our students now and for those who come tomorrow. Thank you for everything you do for our great university. Go Lehigh! With warmest regards, Mike Caruso ’67 Chair, Tower Society As assistant vice president of planned giving and family philanthropy, I am privileged to hear how Lehigh has changed the lives of people, families, students, faculty, and staff. More importantly, I am honored to work with many in our community to ensure their stories are heard and cherished for generations at Lehigh. Planned giving is at its core about building the future together. A planned gift to Lehigh represents an opportunity to create something tangible that honors your memories and experiences while driving students’ potential on campus. Regardless of whether you support financial aid, a specific college or program, or an athletics team, the legacy that a planned gift represents helps Lehigh remain a prominent leader in fostering students who are ready to make the future. Whether you are a recent graduate or from a proud multi-generational Lehigh family, your story, values, and memories deserve to be honored and put to work to guide students, faculty, and the Lehigh community forward. In what follows, you will learn more about the many planned giving vehicles and opportunities that are available to establish your legacy and safeguard your income while having a measurable impact on life at Lehigh. Opportunities such as Lehigh’s Family Philanthropy Initiative offer generations of Lehigh families the chance to connect and plan how best to shape their legacy on campus. You will also read about other planned giving donors and learn the names of those whose bequests were realized in the past fiscal year. We thank them all for their generosity and their willingness to share their values and memories from their time at Lehigh. The planned giving team and I are ready to answer any questions you may have and are excited to hear more about how Lehigh shaped your lives. Thank you for all you do for Lehigh. With kindest regards, Lorraine Wiedorn ’84G ’13P ’17P Assistant Vice President, Planned Giving and Family Philanthropy 3
4 Battling rainy and windy conditions, Daniel Song ’24 led the way for the Mountain Hawks, winning the title of Patriot League Golfer of the Year and securing a fourth Patriot League Men’s Golf Championship for Lehigh. By supporting and cheering on all our studentathletes, you ensure they continue to break records in competition and the classroom.
5 TABLE OF CONTENTS Planned Giving Overview 6 ...................................................... Planned Giving Total Assets Under Management ........... 7 Realized Bequests 9 .................................................................. Building Collaborative Communities: Honoring Ferd Thun ’56 and Adrian DeYoung ’56 and Carol DeYoung 10 ........................................................... Gift Annuity Disclosure Statement 12 ................................... Board of Trustees 14 ................................................................. Contact Us 14 .............................................................................
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 charitable organizations 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 value of the gift 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 expiration of the agreement, which is on average 50% of the amount 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 revenues and assets of the university. 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 either by Lehigh or by a trustee chosen by you. 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 at the time that the trust agreement is prepared. Income is paid on a quarterly basis.
7 Mountaintop Summer Experience Projects like Neurosalon often build the bridge between analytic and creative thinking. Yet their innovation and summer-long experiences cannot happen without a philanthropic community’s support. Thank you for encouraging participants’ progress and breakthroughs. Planned Giving Total Assets Under Management Fiscal year ending June 30, 2023 TYPE OF GIFT MARKET VALUE NUMBER OF PARTICIPANTS Charitable Gift Annuities 20,417,025 198 Pooled Life Income Funds 9,428,111 29 Charitable Remainder Unitrusts 10,464,304 15 Funds Held in Trust by Others 4,361,788 11 TOTAL PLANNED GIVING ASSETS $44,671,228 253
8 A vibrant research community is strongest through collaboration and engagement. On August 3, 2023, over 270 students assembled at the Mountaintop campus to present their hard work and findings to faculty, staff, and alumni. Financial support enables Lehigh students to take full advantage of the multidisciplinary nature of Lehigh’s programs.
9 The Office of Planned Giving recognizes the following individuals who together in fiscal year 2023 have provided $17,528,888 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 2023, the following bequests were received for restricted purposes. Lionel P. Adda 1949 Lionel P. Adda ’49 Endowed Scholarship Fund Alvin A. Albright 1955 Alvin A. Albright, Jr. Memorial Scholarship Fund G. Harry Ashbridge 1952 Financial Aid and Scholarship Irvy T. Barker 1953 Irvy and Sharon Barker Scholarship Fund Thomas S. Cook 1963 P.C. Rossin College of Engineering and Applied Science Albert “Curts” Cooke 1958 Iacocca International Internships Webster Dawley 1949 Webster Dawley ’49 Endowment Fund Carol DeYoung 1956W Carol and Adrian J. DeYoung ’56 Endowed Scholarship Fund 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 Jack I. Laveson 1967 Lehigh Fund David Thomas Moat 1973G Alice and David Moat ’73G Endowed Scholarship Fund Walter Moran 1952 The Walter L. Moran Scholarship Fund John C. Sebastian 1996P Michael C. “Bear” Sebastian Endowed Choral Arts Fund Mahlon B. Simon 1957 Mahlon B. Simon, Jr. Scholarship Gilbert A. Spear 1966 Gilbert A. Spear, Jr. Endowed Scholarship Fund Richard W. Stoeltzing 1950 Lehigh Fund Rodman B. Teeple 1948 Lehigh University Memorial Scholarship Fund Michael A. Vianello 1962 Michael A. Vianello ’62 Endowed Fund for Biological Sciences Priscilla P. Wolle 1953W Wolle Family Scholarship Fund The following individuals left unrestricted bequests to the university. Peter B. Beck 1965 Thomas R.S. Burgin 1956 Joel L. Caves 1980G Ada Flower 1949W Barbara Himmelrich Elizabeth A. Maas 1951W Ellsworth C. Machin 1969 Henry Pickands 1961 William Toikka 1962 Mervin C. Werst 1951 Paul F. Wiener 1969 REALIZED BEQUESTS
10 BUILDING COLLABORATIVE COMMUNITIES Honoring Ferd Thun ’56 and Adrian DeYoung ’56 and Carol DeYoung
11 Ferdinand “Ferd” Thun ’56 At Lehigh, we know that the future is stronger when we build it together. Our community is defined by exceptional friends, family, and alumni who fuel the university’s progress. Here, we celebrate the generosity and lives of two families who marshaled their vision and philanthropy to change student and faculty experiences on campus. A lifelong advocate for Lehigh, Ferdinand “Ferd” Thun ’56 put into practice what he often encouraged others to recognize: the power of philanthropy to make a financially sound decision individually and champion others’ efforts, launch careers, and build connections between people. From 1973 to 1995, in his role as director of planned giving in the Office of Development at Lehigh, Thun taught others about the impact a community of individuals, united by their desires to provide opportunity for others, can have. His legacy left an indelible mark on his peers, friends, and mentees. “At his core, Ferd was a teacher and led by example,” Lorraine Wiedorn, assistant vice president of planned giving and family philanthropy, remembers. His philanthropy at Lehigh focused on raising scholarship support and bolstering the university’s endowment to ensure that more talented students could benefit from a Lehigh education. With his wife, Elizabeth Thun, he established multiple endowed scholarships and The Ferdinand Thun ’56 Chair in Family Business. Thun, however, might have eschewed such individual recognition in favor of championing the many people who made his philanthropy and life successful. Adrian “Bud” DeYoung ’56 and Carol DeYoung were also driven by their hearts and a mindset to always help others. This is why they originally established the Carol and Adrian DeYoung ’56 Endowed Scholarship Fund, a bequest borne of a lifetime of Lehigh connections. From his chance meetings with former Lehigh trustees like Paul Leitner to visiting classes and hearing about Dr. Richard Aronson’s Martindale Scholars’ trips overseas, DeYoung knew he wanted to give back to Lehigh because of lifelong relationships formed on campus and afterward. After Adrian passed in 2004, Carol DeYoung continued her late husband’s legacy of philanthropy and connection. “Carol cared [about Lehigh] because Bud cared,” says Dolores Kresge, Adrian DeYoung’s sister. Carol DeYoung, whose connection to Lehigh started with weekend trips to visit her future husband while she was in high school, carried the spirit of her family’s philanthropic legacy forward by establishing a charitable gift annuity herself, supporting the DeYoung endowed scholarship. While Carol DeYoung passed in 2021, her and Adrian DeYoung’s legacy now shapes the lives of students in the College of Business. Both the Thun and DeYoung families exemplify Lehigh’s ability to bring people together. They used their experience at Lehigh to guide their philanthropic vision and worked to grow Lehigh’s community through their generosity and example. Their work reminds us that Lehigh’s bright future is linked to the strength of its community. Carol DeYoung and Adrian “Bud” DeYoung ’56
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, 2023, 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 Gazing up at the Linderman Library Rotunda’s stained glass for the first or one of the last times as a student always inspires awe. 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. At 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, 2023, are well in excess of the present value of its liabilities.
14 BOARD OF TRUSTEES Finance Committee | Fiscal Year 2023 Members Jordan Hitch ’88 ’20P ’21P (Chair) Former Managing Director Bain Capital Jeffrey Bosland ’88 ’22P 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 Sarat Sethi ’92 Managing Partner Douglas C. Lane & Associates Erika J. Smith ’99 Dean of the College Connecticut College Frank E. “Ted” Walsh III ’88 Partner WR Capital Partners Investment Subcommittee | Fiscal Year 2023 Members Mary T. Kush ’88 (Chair) Principal Douglass Winthrop Advisors 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 Daniel R. Pietrzak ’97 Co-President and CIO FS/KKR Advisor LLC Edward Ramos ’89 Independent Director Optimum Fund Trust 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 Frank E. “Ted” Walsh III ’88 Partner WR Capital Partners CONTACT US Please share with the Office of Planned Giving 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 (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
15 An education at Lehigh is not limited to the lab or classroom. Instead, we know that hands-on, experiential learning drives our students forward and gives them the skills needed to lead where they go next. Here, Professor Allison Mickel leads her students through an active archeological dig behind Lehigh’s Humanities Center. 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 personal planned gift deductions and gift annuity taxation amounts.
16 THE CAMPAIGN FOR FUTURE MAKERS
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