Just before he graduated from Stanford, Peter Gifford, '97, MBA '04, jumped into the "Claw" fountain in White Plaza, celebrating a record-setting Senior Gift fundraising campaign. Thoroughly soaked, he and his Senior Gift co-chairs proceeded to bring the good news over to the president's office, where they found then-provost Condoleezza Rice.

"We all got hugs in our wet clothes," he says. It wasn’t the first time or the last that Peter and his family helped win support for Stanford. He followed in the footsteps of his grandfather, Karl P. Grube, '35, MS '36, whose family tree bears a multitude of Stanford degrees earned by his son and daughter-in-law, his son-in-law, and his four grandchildren. Now Peter has become the third generation of the Grube/Gifford family to give back to Stanford by making a planned gift.

A Stanford Rough

Karl Grube's love of the university began with his days as a Stanford "Rough" dressed in dusty corduroys.

An aeronautical engineering alum, he later led his family's office furniture business in Illinois. However, "he was a Stanford engineer through and through," says his son John Grube, '70. "He even courted my mother in the wind tunnel." He went on to win the Stanford Associates' Outstanding Achievement Award for his volunteer work for the university.

Karl's loyalty to Stanford had a strong impact on all around him. Family legend has it that his two children could say "Stanford" before "Dad." He encouraged his son John and family friend Jonathan B. Gifford, '64, MAR '66, to attend the university. Later, his daughter Betsy married Jon, and their two children, Peter and older brother Jonathan K. Gifford, '95, both graduated from Stanford.

But Karl did more than recruit students and pursue major gifts for Stanford in Illinois. He also took advantage of estate planning to help Stanford.

In his work, Karl believed in interdisciplinary approaches to research and problem solving, and at Stanford, he recognized the same strengths. "Dad historically championed multidisciplinary research. He felt very strongly that projects and research should be across departments and inter-schools. He saw that Stanford was in the vanguard of collaboration," says Betsy Grube Gifford, herself a longtime supporter of athletics, the arts, and the medical center at Stanford.

That vision of collaboration was at the heart of the bequest he crafted before his death in 1989. By leaving a portion of his estate, together with the remainder of a life income gift he had established during his lifetime, to Stanford's School of Engineering, the Karl P. Grube Laboratory in the Thornton Center became a reality. It is the home of the Smart Product Design Lab, which has helped propel Stanford to the forefront of multidisciplinary research.

From Volunteer to Donor

The example set by Karl was soon followed by the second generation. His son John and his wife, Ann, '74, became committed Stanford volunteers and, in 1999, planned giving donors. A retired bank executive, John served on the staff of the dean of students from 1970 to 1972 and has supported the university ever since, receiving the Governor's Award in 2012. Ann, an Associates' Award recipient, comes from a Stanford family as well—her father, Robert Elliott, '42, LLB '49, was an alumnus and her great-uncle was Fred Glover, '33, an aide to four Stanford presidents and Gold Spike awardee. The couple's children, Katie, '04, and Rob, '08, were accomplished Stanford student-athletes in lacrosse and golf.

John and Ann created a charitable remainder trust, a gift that provides payments to its beneficiaries for life. At the end of the trust term, part of the remainder will be distributed to Stanford. "Stanford was so important to our family that it was just natural to give back," Ann says.

Fountain of Youth

For Peter Gifford—that one-time fountain hopper—the notion of an estate gift arose as he approached his reunion this year. A partner at a private investment office in Palo Alto, he had served his undergraduate class as co-chair for his 5th reunion, a leadership gift committee member for his 10th and 15th, as well as co-chair of the participation committee for his 15th.

Along the way, he had garnered an Outstanding Achievement Award of his own. And he shared his grandfather's confidence in Stanford's power to spark innovation. "I believe the university is well positioned to find creative solutions to the many challenges we face," he says.

Like his grandfather, Peter decided to include a bequest to Stanford in his estate plans. When he informed Stanford’s Planned Giving staff of his plans, he was invited to become a member of Stanford's Founding Grant Society, an association established to honor those who have provided for future gifts for Stanford.

Maybe it's his family tree, with its deep roots at the university, that has given Peter such a long-term perspective on giving. He's thinking not only of the story that began with his grandfather, but also future generations, he says.

"Stanford is going to be a good steward of our assets for generations to come."

The American Taxpayer Relief Act of 2012, enacted by Congress in January 2013, preserves existing tax rates for most Americans, while introducing higher rates for those with the largest incomes. The Act also includes important tax advantages for those who make charitable gifts from retirement plans. Remember Stanford spoke with tax and estate planning attorney John Hopkins, '54, JD '57, recently retired from San Jose's Hopkins & Carley, to learn just how the new Act will affect charitable giving.

Q: The Act includes incentives for lifetime charitable gifts for individuals who are over the age of 70 ½ and are taking required minimum distributions from their Individual Retirement Accounts (IRAs). The law allows the individual to make gifts directly from his or her IRA to charity. How does that work?

A: Known as an "IRA charitable rollover," this is an excellent way to make a gift to charity. The act allows Americans who are 70 ½ or older and are taking their required minimum distributions from their IRA--all of which is taxable income to them--to instead transfer up to $100,000 from an IRA directly to a charity, such as Stanford, tax-free. The distribution will not be included in their adjusted gross income, and that can result in significant tax savings. In many cases this will enable the taxpayer to avoid higher tax brackets and the possible reduction of itemized deductions in those brackets. This option expires on Dec. 31, 2013, but Congress could act to extend this provision for future years.

Q: The Act increased capital gains tax rates for individuals with higher incomes. How might that impact charitable giving?

A: Higher capital gains tax rates create a greater incentive to use appreciated assets to make charitable gifts. If you have an asset that is highly appreciated, such as stock, and you sell the asset, typically you must pay capital gains tax on the amount of appreciation. If you give the appreciated asset to a charity, generally you are entitled to a charitable income tax deduction for the full market value and, when the charity sells the asset, it will not owe capital gains tax. The charity can then use the full proceeds for the purpose you designate. People who are interested in making a gift to charity and also receiving an income should consider using appreciated assets to establish a charitable gift annuity or charitable remainder trust. The donor receives the benefit of a tax deduction for part of the value of his or her gift as well as an income based on the full value of the assets.

Q: The Act had provisions about the estate tax exemption. What do these mean for charities?

A: The estate tax exemption of $5 million for an individual that was in effect for 2011 and 2012, indexed for inflation, has been adopted and will continue to be indexed for inflation. For 2013, the individual exemption is $5.25 million and a couple, with proper planning, can transfer $10.5 million free of estate tax. With more certainty about estate taxes, people are better informed to be able to think about their estate plans and the amounts they want to leave to loved ones and friends, as well as a legacy they might want to provide for charities that are important to them.

Q: There are some new limitations on itemized deductions. How could those limitations, and the higher income tax rates, affect giving?

A: The Act revived the "Pease limitation," which reduces the amount of itemized deductions that certain taxpayers are allowed. Despite some press that the limitations might negatively impact charitable giving, that is not likely, because taxpayers who would be subject to this rule will almost always find that their charitable contribution deductions are not affected. Most Americans have other itemized deductions—such as state income tax, home mortgage interest, or property tax—that will absorb the itemized deduction limitations, and the taxpayer can still take the charitable deduction in full. In fact, the higher income tax rates for the top brackets mean that the charitable deduction is even more valuable now, because those dollars would be taxed at a higher rate if they didn't go to charity. The most negative impact of the Pease limitation is that it has confused many people—those who are not steeped in the tax code. That's why it's a good idea to talk to your tax advisor.

Q: Do you think the Act will have a positive effect overall on charitable giving?

A: Many of the changes to estate and income tax rates will bring more certainty for planning, which will allow people to create thoughtful estate plans, often including provisions for charities like Stanford. The higher income and capital gains tax rates and the extension of the IRA charitable rollover should make charitable gifts more attractive to many people from a tax perspective.

Please note: this article is not intended as legal or financial advice. Please consult your advisors. If you have questions about charitable giving or planned gifts, contact Stanford's Office of Planned Giving.

John F. Hopkins, '54, JD '57, father of six and grandfather of eight, counts one more beneficiary when planning his estate: the local community. He and his wife, Valerie, include it along with their children.

Hopkins, a tax and estate planning attorney for more than 55 years who is now retired in Los Gatos, California, has a few reasons for this approach. First, he says, "if you have done well financially, you've been able to succeed at least in part because of the healthy community that surrounds you." Nonprofit organizations form the network that maintains the social and cultural fabric of that community. With governments strapped, he adds, nonprofits rely on the support of donors more than ever.

"We need to value and contribute to the community—educational and medical institutions, social services, the arts—and we can't rely on government to do it all," Hopkins says. "We all need to do something to leave our children and grandchildren a better community. It should be part of our legacy."

This message has been the centerpiece of talks that Hopkins has given around Silicon Valley for the past 20 years. He follows this philosophy himself. John and Valerie Hopkins support many nonprofits including Stanford, and he has included a bequest for Stanford in his estate plan.

Hopkins has provided for his future gift to Stanford by designating the university as one of the beneficiaries of his retirement plan. Hopkins explains that many people don't realize that some of the best assets to leave charity are funds in a retirement account. If a person's children receive retirement plan distributions, the entire amount will be subject to income taxes, and possibly estate taxes if the parent's estate exceeds the amount of the current estate tax exemption. If a charity is designated as a beneficiary of a retirement plan, the charity receives the full amount, with no income or estate taxes to be paid—regardless of the size of the estate.

Hopkins' relationship with Stanford stretches back to his childhood in California farm country, when he heard about Stanford from friends. After spending summers picking and packing berries in Watsonville, he applied to Stanford and was awarded a scholarship.

He still recalls the cost of tuition in September 1950: $220 a quarter. At Stanford, Hopkins majored in economics, with an eye to becoming a tax attorney—a field recommended by a fraternity brother. He excelled at Stanford Law School, serving as editor of the Stanford Law Review. Hopkins eventually settled in San Jose. With three other lawyers, he established a law firm that later became Hopkins & Carley, one of Northern California's largest estate planning firms.

Along the way, Hopkins got involved with his community, working closely with a variety of organizations. He serves on the board of EMQ FamiliesFirst, a social services agency for at-risk children, and others, including the Silicon Valley Community Foundation and Lincoln Law School of San Jose. Hopkins has also been a longtime volunteer for Stanford, including serving as chair of his law school class's 50th reunion campaign.

Hopkins encourages people creating estate plans to focus not only on tax reduction, but also on their values: how to use wealth to shape their legacy for their children and their community. He even suggests establishing donor advised funds or other gift vehicles that allow their children and grandchildren to make their own charitable gifts in the future.

"I call this your charitable legacy to your children," says Hopkins. "It will enrich their lives."

Founding Grant Society Luncheon

April 2013

More than 370 Stanford alumni and friends attended a luncheon for Founding Grant Society members on April 18, 2013. Guests had a chance to mingle, hear from two distinguished Stanford faculty speakers, and enjoy a student musical performance. The event was held to honor and thank those who plan to provide future support to the university through their bequests and other planned gifts. For more information about the Founding Grant Society, please contact the Stanford Office of Planned Giving.

As a graduate student in physics, Bruce McCaul, MS '63, PhD '69, did more than study lasers with world-class scientists. He also played for the Neutrinos, "a very successful intramural team" named for matter-penetrating subatomic particles. The team did well in the rankings, but only because they pursued "some of the more obscure sports—we were really strong in horseshoes," Bruce recalls, laughing.

Now, Bruce and his wife, Karen Pope McCaul, '63, MA '64, are giving a new generation the chance to excel. Along with Bruce's sister, Margaret T. McCaul, they have made life income gifts that are already helping both graduate and undergraduate students at Stanford.

The opportunity to make a significant gift came after the McCaul siblings inherited highly appreciated stock held by their late father, mechanical engineer Edward McCaul. The McCauls wanted to receive some financial benefit from their inheritance, but the tax consequences of selling the stock outright would have been daunting.

So when Bruce heard from friends about the benefits of using appreciated assets to create a life income gift with Stanford, he and Karen decided to establish a charitable remainder unitrust with their shares. The trust provides them with income during their lifetimes, and then the remaining assets will be used to fund the McCaul Family Undergraduate Scholarship. Margaret created her own charitable remainder unitrust, which pays a life income to her. The remainder will fund the McCaul Family Graduate Fellowship for physics students.

As the beneficiaries of the unitrusts, the McCauls receive annual payments during their lifetimes.

Bruce, Karen, and Margaret are not only providing for themselves—they are also helping students. Because of the purposes they selected, the McCauls' gifts were eligible for matching funds available at that time from Stanford. That meant the scholarship and fellowship funds were established immediately with the matching money, allowing students to receive support during the McCauls' lifetimes and giving the McCauls the chance to hear from students about their gifts' impact. (Gifts for certain purposes may qualify for matching funds; for more information, contact the Office of Planned Giving.)

Also appealing to the McCauls is that their trusts are invested by Stanford Management Company with the Stanford endowment. "Stanford has a fabulous track record, and we trust them," Bruce says. Karen concurs: "To have Stanford take over the management of the funds was very rewarding." They were also able to take advantage of a charitable tax deduction for a portion of the gifts.

Today, the McCaul funds support Alicia Salcedo, '14, an undergraduate chemical engineering major from Fair Oaks, Calif. (see below), and TianMin Liu, PhD '17, a physics graduate student from China.

"It's really fun to be able to interact with a scholarship recipient now, instead of imagining a recipient in the future," says Bruce.

Supporting graduate students has been equally satisfying. "Education is so important for young people's lives—and for the world," says Margaret, a longtime San Franciscan and alumna of Smith and the University of Michigan.

Bruce and Karen know firsthand how life changing a Stanford education can be. Karen, one of the first Stanford undergrads to study abroad in France, was so inspired by her experience that she decided to enter the field of education and became a French teacher. Bruce's Stanford doctoral training led to a career in laser technology. In 1990, he founded Oxigraf, a company that uses lasers to measure oxygen levels for medical and aerospace applications.

The Palo Alto couple has stayed involved at Stanford over the years. With the Stanford Mothers' Club, Karen helped raise funds for full tuition scholarships while the couple's daughters, Elizabeth Beasley, '90, and Catherine Medin, '91, were students. She also has served as class correspondent for the class of 1963 and on reunion campaign committees. Bruce now serves on the board of the Stanford Alumni Association.

The family looks forward to continuing their relationship with the university through the students supported by the McCaul family funds—a new generation of young people whose lives will be forever changed by their Stanford experience.

And the scholarship goes to...

The first McCaul Family Undergraduate Scholarship was awarded to Alicia Salcedo, '14, who is pursuing a degree in chemical engineering. Salcedo has become a mentor to other young people who, like her, are visually impaired, as a volunteer for Survive or Thrive, a student-run program in Los Angeles for high schoolers with visual impairments. The goal of the workshops she holds with students is to empower them to become more independent. She explains, "We encourage students to go to college—we want to help them be able to succeed."

Salcedo is doing just that at Stanford. She uses special equipment for taking notes and completing coursework—equipment that can be costly. But the McCaul Scholarship tuition support helps offset the extra expense. "The McCaul family is the reason that I was able to go to Stanford," says Salcedo, who plans to work in the fields of energy or environmental sustainability after graduation.

This fall, Salcedo carried a special memory back to campus: her late grandfather's dreams for her. As he battled cancer last year, he encouraged her "to succeed and to thrive at Stanford." With the help of her scholarship and her commitment to learning, that is the dream she's pursuing today.

Founding Grant Society Concert

February 2014

More than 400 Stanford alumni and friends gathered at the Bing Concert Hall in February 2014 for a special concert held for Founding Grant Society members. Stephen Sano, chair of the music department and the Harold C. Schmidt Director of Choral Studies, spoke about the hall's construction and Stanford's growing arts district. Guests also enjoyed musical performances by the St. Lawrence String Quartet and the Talisman singers, a student a cappella group. The Founding Grant Society was created to honor and thank those who plan to leave a legacy for the university through their bequests and other planned gifts. For more information about the Founding Grant Society, please contact the Office of Planned Giving.

One day, when Kathy and Tom Macdonald were living at Stanford on his graduate student's stipend, they ran out of grocery money. Kathy was an undergraduate, and Tom was pursuing a master's degree on a National Defense fellowship, so it was often hard to make ends meet. Kathy turned to the Stanford graduate student office for help.

"The fellow behind the desk gave me a $25 check and said, 'We know you'll pay it back,'" she remembers with a smile.

That was just one of many ways that Stanford helped change the lives of Kathy, '63, MA '64, and Tom, MA '66. From humble beginnings in Rhode Island—where they were teenage sweethearts—the newlyweds blossomed on campus. "Stanford opened our minds," explains Kathy. "We realized it was OK to be a 'nerd.' Everybody wanted to talk about ideas."

Kathy and Tom never forgot the generous spirit they found at the Farm. The Macdonalds have now included Stanford in their estate plans by creating two charitable gift annuities and designating a bequest to the university. Their plans will provide fellowships for graduate students in the School of Humanities and Sciences, ensuring that future generations receive financial support.

Savvy planning

These days, the Macdonalds have their household finances well in hand. Tom worked for 25 years for the Hawaiian Trust Company, which was responsible for managing $12 billion in assets. He retired as president and chief executive officer in 1995. He is familiar with retirement planning vehicles and says he is "sold" on charitable gift annuities.

A charitable gift annuity is created when a donor makes a gift of cash or securities to Stanford in return for a periodic payment that continues each year for life. The fixed payment amount depends on the beneficiaries' ages and the size of the gift. The donor may take a current income tax deduction for a portion of the gift value. When the gift matures, the remaining assets are used by Stanford to support the purpose(s) chosen by the donor.

Tom explains that for those who want to make a philanthropic gift and also receive annual payments, charitable gift annuities offer great benefits. Their payments can be higher than the income earned from many other investments in this current low-interest environment. And a charitable gift annuity locks in those guaranteed payments for the beneficiaries' lifetimes.

"The annuity rate of 4.7 percent was very attractive," says Tom. As Kathy puts it, "This is an absolute win-win for us."

One good gift deserves another, and another

In fact, the Macdonalds were so pleased with their first charitable gift annuity, they decided to establish a second one at Stanford—with a twist. This time, they designated Tom's younger sister as the beneficiary, as a surprise for her birthday. The arrangement enabled them to help a family member for the duration of her lifetime.

"It's a wonderful way to help take care of somebody," says Kathy.

In addition, Kathy and Tom included a substantial bequest to Stanford in their plans, also to support graduate students.

Opened doors, and more good luck

Thinking back to their own years as students, Kathy and Tom attribute much of their success in life to the doors Stanford opened for them—and to their persistent good luck.

After graduation, the couple moved to Hawaii, where Tom trained for the army. Following his service in Vietnam, they both pursued teaching jobs in Rochester, New York, but Tom soon decided to make a change. Visiting the employment office one freezing day, he learned of an opening at a trust company—and as luck would have it, he could easily get there on foot using the city's warm underground tunnels. He landed the position and embraced a new career.

Soon the couple set their sights on returning to Hawaii. When they entered a contest advertised on a jar of Miracle Whip, they won a trip to the islands. Their ingenuity and Stanford credentials helped them secure jobs in Honolulu: Tom at Hawaiian Trust and Kathy as an English professor at the University of Hawaii, where she authored a widely-used textbook, When Writers Write.

Tom ventured back to campus for an executive education program in the 1980s—and found it very hard to leave Stanford again after the program ended. "Kathy insists she had to put a rope around me and pull me away," he says, laughing.

Two years ago, the Macdonalds returned to Northern California for good and bought a house in Carmel Valley. Now they are in a position not only to help graduate students, but also to see Stanford from another perspective. They have enjoyed visiting campus for performances and for Kathy's 50th reunion in October—an experience that "really strengthened our ties to Stanford," she says. With their planned giving arrangements, they know this connection will last.

Gale McCreary Wilson-Steele, '74, has devoted her life to building things. As a licensed contractor, she built homes. As an entrepreneur, she created a successful Internet company. As a parent, she raised four children.

However, when it came to managing her planned gift at Stanford, Wilson-Steele decided to let others do the heavy lifting. She appointed Stanford as trustee of her charitable remainder unitrust. It was also important to her that the university be able to use the funds to meet its greatest needs when the trust matures. That is why she made her planned gift unrestricted.

"I trust that Stanford’s experts know the best way to direct the money," she explains.

From Entrepreneur to Benefactor

Wilson-Steele's charitable journey had an unusual start. After graduating from Stanford as a biology major, she became a licensed contractor, learned computer-aided design, and launched a gourmet food website. Then, together with a Stanford alumnus angel investor, she created Medseek, a company that builds software to help hospitals connect with patients and doctors.

At first, she worked long hours for uncertain returns. "I paid my bills off my credit card," she recalls.

It took 16 years, but finally Wilson-Steele was able to think about how to use her assets to make a charitable gift. She believes in "tithing"—giving away a percentage of one's earnings—and was interested in supporting areas as diverse as medicine, international relations, the environment, and education.

"I called Stanford, because it felt like one-stop shopping," she explains.

Choosing the Right Gift

Wilson-Steele worked with her advisors and Stanford's Office of Planned Giving to choose the gift that would best meet her needs. Although most people fund charitable remainder unitrusts with cash or publicly traded securities, Wilson-Steele's gift was more unusual because she used 10 percent of her company shares to create a charitable remainder unitrust.

She was glad to learn that the university could become the trustee of her trust—she says she has confidence in Stanford’s expertise in managing assets.

After the stock was sold, Stanford as trustee invested the proceeds with its endowment. Now Wilson-Steele receives income from the trust for her lifetime: annual payments in the amount of 5 percent of the principal (the exact amount fluctuates depending on the trust's value at the beginning of each year).

There were other upsides to the unitrust for her and her family. Wilson-Steele designated her husband, Gregory Steele, as her successor beneficiary, so that he will receive income if she passes away first. She also was happy to take a charitable income tax deduction for her gift, which helped reduce her income taxes.

“It’s such a win all the way around,” she says.

Although many planned gifts are earmarked for a specific use, Wilson-Steele consciously decided not to do that. She had learned how valuable a flexible gift can be for university leadership. That's why she created an unrestricted gift that Stanford can direct toward its greatest needs when the trust matures. (See the explanation of restricted and unrestricted gifts below.)

Enjoying the Benefits

Since selling her company, Wilson-Steele has been able to devote more time to traveling, visiting her four grandchildren, and riding her three horses. She recently trekked Peru's Inca Trail. In California, she enjoys exploring the trails around her homes in Felton and Solvang and making wine from her Syrah vineyard.

The payout that she receives from the charitable remainder unitrust comes in handy these days.

"It's a very nice additional income stream right now," she says.

Wilson-Steele also has enjoyed being part of Stanford's Founding Grant Society. As a member of this group, which recognizes those who have chosen to make a bequest or planned gift to support Stanford, she has been invited to special events on campus, where she has met many other benefactors.

"It's opened up a whole new social outlet."

This past year, Wilson-Steele has taken some time to talk with fellow alums by serving as the planned gift chair for her 40th reunion. "I enjoy connecting with my classmates and learning what they’ve been doing for the past decades." She also shares with them the benefits of a planned gift.

The Face of Stanford's Future

There’s something else that inspires Wilson-Steele to give back: the next generation of Stanford alumni. She is getting to know several of them through her son, Luke Wilson, '16, a computer science major. His friends are exactly the kind of young people she hopes to encourage with her giving.

"Each of these students is trying to impact the world in a positive way," she says. "Stanford nurtures and nourishes their desire to benefit humankind."

Building a better future—that is at the heart of the university that Wilson-Steele is proud to support with her planned gift.

Your Planned Gift: Unrestricted or Restricted?

When considering making a planned gift to Stanford, you have several choices. One choice is whether to designate your gift as unrestricted or restricted.

An unrestricted planned gift, like the one made by Gale Wilson-Steele, allows Stanford to use the funds, once available, to support the areas of greatest need. Unrestricted gifts are extremely valuable because of their flexibility: Stanford’s leadership determines how to use the assets to support the objects and purposes of the university. In a given year, this could range from scholarships to research initiatives to earthquake preparedness.

A restricted planned gift allows you to support one or more areas that are meaningful to you. For example, you may wish to support undergraduate financial aid, graduate fellowships, or a specific area of research.

For both unrestricted and restricted planned gifts, Stanford’s Office of Planned Giving would be happy to provide language for your estate plans.

Like so many young adults and their parents during the turbulent '60s, Cathleen "Cathy" Caballero, '70, and her father disagreed about everything—politics, the role of women, the war in Vietnam—everything except their alma mater. At Stanford they found common ground.

"My dad called it esprit de corps—a sense of belonging," Caballero says. "That was my background: a notion of belonging to Stanford."

Caballero is now honoring her father by giving back to the place where the two saw eye to eye. She has named the university as a beneficiary of a charitable remainder unitrust, which provides income to her now and will support Stanford in the future.

Growing Up Cardinal

Stanford was a constant presence in Caballero’s childhood in Southern California, especially during football season. Every time Stanford played the Bruins or the Trojans, she and her father, Harold "Cabby" Caballero, ’35, could be found in the stands at the Los Angeles Coliseum.

Later, Caballero found herself cheering for the Cardinal inside Stanford Stadium as a member of the Class of 1970—and then down on the field next to the band. The day she became a Dollie was one of the highlights of her years on campus. Cathy had long admired the squad and was thrilled to cheer on the Cardinal while dancing to the latest hits.

"We had so much fun. The Stanford band was so good—they played Marvin Gaye and the Beatles," she recalled. "They were so far ahead of any other band."

Her father, too, had a soft spot for Stanford athletics. A member of Stanford's boxing team as a student, Cabby was an avid booster of the school's athletic programs until his death in 1995. He served as vice chair of the university's first significant fundraising campaign, PACE (Plan of Action for a Challenging Era), launched in 1960. And he proudly displayed a sandstone brick, reportedly left over from building the Quad, in his Pacific Palisades home, where he and his wife hosted Stanford events for Southern California alumni.

Cabby, who earned his degree in economics at Stanford, had been a successful businessman, first as a developer of drive-in movie theaters with his father, and later as the founder of a residential and commercial real estate firm. His dedication to giving back made an impression on his daughter, as did his devotion to the university.

"I knew I'd lived a privileged life, and part of my way of looking at the world was to contribute," Caballero says.

Honoring Their Shared History

Caballero decided to make a planned gift after learning about various lifetime gift options through her 40^th class reunion. She realized that a charitable remainder unitrust offers many benefits, including income payments for life as well as significant tax advantages. Caballero also learned that she could direct the remainder funds toward a cause near to her heart. After her lifetime, funds in her charitable remainder trust will support programs at Stanford that address issues confronting women in developing countries.

Besides the financial advantages, Caballero says choosing Stanford as a beneficiary in her estate plans simply made sense. "I know I'll get my bang for the buck. I know Stanford will be around and the university does—and will continue to do— incredible things," she says.

Today, Caballero lives on a farm in Montana, where she raises yaks, rescues donkeys, and rides horses. This past winter she camped in an Airstream trailer in Arizona to escape the snow. Wherever she is, the income from the trust supports the way she has chosen to live her life—simply, and in a way that is very meaningful to her.

Caballero says there is more to her decision than she first realized. "The money I inherited was from my dad. I was a beneficiary of his largesse," she says. "Giving back to the university is fitting because he felt so strongly about supporting Stanford."

If his free-spirited daughter could, she would tell her by-the-book father: "'Well, Dad, I know there were a lot of things we didn’t agree on, but this is one we do.' Stanford was our common ground."

Founding Grant Society Luncheon

April 2015

More than 400 Stanford alumni and friends gathered at the Frances C. Arrillaga Alumni Center in April 2015 for a spring Founding Grant Society event. Russ B. Altman, the Kenneth Fong Professor and professor of bioengineering, of genetics, and of medicine, spoke about efforts to precisely match medicine to maladies in a speech titled, "Using Your Genome to Pick the Best Drugs for You." And Bernard Muir, the Jaquish & Kenninger Director of Athletics, discussed Stanford's sports program, the efforts to bring home a national championship, and graduation rates among athletes.

The Founding Grant Society honors those who plan to leave a legacy for Stanford through bequests and other planned gifts. For more information, please contact the Office of Planned Giving.

PHOTOS: Steve Castillo

Congress has just extended the IRA charitable rollover provisions for 2015 and beyond. For those who are 70½ or older, any amount up to $100,000 can be distributed tax-free from your Individual Retirement Account (IRA) to Stanford or your other favorite charities through December 31, 2015—and because Congress did not include an expiration date on these provisions, similar distributions can be made in future years as well. This amount can count toward your required minimum distribution for the year in which the distribution is made. Although these distributions are not deductible as charitable contributions on your income tax return, they impact your taxes because they are not treated as taxable income to you.

Here’s How It Works:

• You must be 70½ or older at the time of distribution.
• You may distribute any amount up to $100,000 in a calendar year to charity, as long it is completed by December 31 of the year in which you intend to make the charitable distribution.
• Your IRA administrator must make the distribution directly to the charity, or you may write a check payable to the charity from your IRA checkbook. For a sample letter of instruction to your IRA administrator requesting a distribution to Stanford, click here.
• If you make a gift to Stanford from your IRA, please include written instructions on how you would like to designate your gift by making a note on your IRA check. You can also call 866.543.0243 or email giving.to.stanford@stanford.edu with your gift designation.

Certain restrictions and requirements* must be followed when making this type of gift. If you have questions, please call the Office of Planned Giving at Stanford at 650.725.4358 or 800.227.8977, ext. 54358, or email planned.giving@stanford.edu. Before proceeding, you should also consult with your tax advisor to discuss your particular situation including any impact of your state's tax laws.

* For example, the following transfers will not qualify: distributions to private foundations, to donor advised funds, for life income gifts (e.g., charitable remainder trusts), and for any purpose that entitles you to receive a benefit, such as preferred seating at athletic events or tickets to a dinner.

Gifts may be sent to:

Stanford University
Development Services
P.O. Box 20466
Stanford, CA 94309-0466

For further information, please contact:

Office of Planned Giving, Stanford University
Tel: 650.725.4358 or 800.227.8977, ext. 54358 (toll-free; United States only)
Email: planned.giving@stanford.edu
Website: plannedgiving.stanford.edu

Stanford University’s federal tax identification number is 94-1156365

When Vic Althouse decided to pursue his doctorate in 1957, he chose Stanford.

The problem was, he wasn't sure Stanford would choose him. But after watching a fellow chemist passed over for promotion for lack of a PhD, Vic was determined to be ready when opportunity knocked.

So he picked up the phone, crossed his fingers, and dialed.

"Stanford said, 'Come on up,'" recalls Vic, who had a chemistry degree from UCLA and two years in the Army under his belt when he arrived in Palo Alto that fall. "Not only was I admitted, but Stanford helped with my tuition. I could handle the first quarter with the GI Bill, but after that Dr. Harry Mosher saw to it that I got what I needed."

Mosher, a beloved chemistry professor and mentor of many, helped Althouse secure the funding he needed to complete his studies. The chemist clearly saw potential in the young man--and it turns out, Mosher was right. About a decade after earning his PhD in organic chemistry, Vic founded Vichem Corporation, a highly successful semiconductor supply company that he ran with his wife, Sue, from the early 1970s to the late 1990s.

Along the way, the couple became staunch supporters of the university, making annual gifts for many years. In 1998, they established the Althouse Family Stanford Graduate Fellowship Fund in gratitude for the help that Vic had received as a graduate student 40 years before. Then in 2011, they remembered the university in their estate plans by arranging for a portion of their estate to fund a testamentary charitable remainder unitrust. The Althouses chose the unitrust for several reasons: It provides for their daughter and two sons during  their lifetimes, can offer tax advantages, and ultimately benefits the university.

"Our gift to Stanford provides greater potential and greater possibility than anything we could do on our own," he says. "I know Stanford will do something significant in the world with our gift."

Sue wholeheartedly agrees: "I'm all for it. Education is too important to ignore."

How to ship all those chips?

The Althouses' road to success may have begun with education, but it soon moved to the kitchen table. One day a friend from Hewlett-Packard told Vic that the company needed a secure device to transport silicon chips--the same chips that were turning the Santa Clara Valley known for orchards into a tech powerhouse now known as Silicon Valley.

A born problem-solver, Vic knew his way around polymers and plastics. So he experimented over the kitchen stove until he concocted a material that could protect and safely transport the fragile chips. He called it the Gel-Pak. "This is 1970, the beginning of the semiconductor industry," he notes.

Eventually, Vic invented a device even more valuable that he dubbed the universal Vacuum Release carrier. The beauty of the carrier was that it securely held the chips for transportation and then gently released them. "It was reversible," he says. "We patented it in 1983. That's when the business took off."

One million sold

In the beginning, it was a family affair: The children put labels on the boxes at night, Sue answered the phone by day, and Vic worked full-time jobs while tinkering with his inventions every chance he got. Sue still laughs when she recalls all the kitchen utensils her husband used. "I had to replace mixers, measuring cups, you name it," she says with a smile. "Vic would say, 'That's OK, you can just wash it.' No I couldn't--not when I knew what had been in there."

Soon, Vichem outgrew the kitchen table as the Valley's semiconductor companies lined up to buy the device. "We sold 3,000, 4,000, 5,000 a year. HP kept buying it," Vic recalls. "Then Intel bought the one-millionth tray."

As the business prospered, the chemist quit his day job and traveled the world selling his invention. In 1997, the couple received an offer to buy the company and neither hesitated. As successful as Vichem was, it was time.

"It is surprising, and I guess gratifying, that essentially all of the products we developed are still in existence and sold today, several decades after they were invented," Vic says. "I had fun while it lasted. There's nothing like owning your own business."

Now, he and Sue are very pleased to provide support to the place that took a chance on a young man seeking to improve himself--and changed the course of his life.

It's fitting, he says, to give to Stanford after Stanford gave so much to him.

"I feel real gratitude to Stanford for giving me the opportunity to go back to school. They made it happen," Vic says. "Establishing a trust here feels right."
 

Sergio Garcia's parents never went to college, but they believed strongly in the value of education and pushed him and his five siblings to excel. As a teenager growing up in South Central Los Angeles, he set his sights on Stanford when a recruiter from the university visited his inner-city high school. His hard work gained him an offer of admission, and a scholarship made it possible for him to accept.

At Stanford, Sergio was already thinking about how the university could change the lives of other young people. He joined a student-led group focused on developing science and math curricula for high school students in East Palo Alto.

"I remember the sheer excitement whenever we would bring the kids to Stanford," he says. "For many of them, it was the first time they'd ever set foot on campus, even though it's just a couple of miles from their homes. That stuck with me—the power of exposure, the power of providing access to an educational opportunity."

Nearly three decades later, Sergio is senior vice president and general counsel at Zeltiq Aesthetics, a medical technology company in Northern California. A volunteer with several education nonprofits, he serves on the board at the Hispanic Heritage Foundation, which connects young Latinos with leadership and career opportunities.

When he and his wife, Amelia, were doing their estate planning, they saw a chance to do for others what Stanford had done for him. In addition to taking care of their three grown children, the couple included Stanford as a beneficiary of their living trust, designating the eventual proceeds to establish an undergraduate scholarship fund that will support students well into the future.

Sustaining a commitment to affordability

Surprisingly few private American universities can afford to combine need-blind admission—where students are selected regardless of their ability to pay—with a pledge to meet their full demonstrated need. Endowed scholarship funds are critical to upholding the life-changing promise Stanford has made.

Scholarships can change the donors' lives as well. In addition to creating an endowed scholarship fund with an outright gift or an estate gift, undergraduate scholarships can also be designated as the ultimate purpose for a "life income gift." A life income gift involves making a gift to a trust or other arrangement that provides annual income to you or another beneficiary for life or a term of years, before the remainder is directed to Stanford.

In addition to creating a stream of income and making a charitable gift to Stanford, there are some tax benefits available when setting up a life income gift. Depending on the amount of your gift, you may be able to endow a new undergraduate scholarship fund or add to an existing fund.

From his senior residence overlooking the Stanford campus in Palo Alto, Nelson Chu could see the potential benefits of planned giving—including benefits for his own family. Chu wanted to set up trusts that would benefit family members in the future, rather than providing for a lump sum inheritance.

By creating charitable remainder unitrusts through Stanford—which will deliver quarterly payments to him and other family members—he was also able to honor his parents and their commitment to education by establishing an undergraduate scholarship fund in their memory.                              

"Philanthropy was always in my father's heart," Nelson says. In addition to raising four children of their own, Nelson's parents supported their orphaned niece and two nephews, putting them through college and helping them throughout their lives.

With his gift to Stanford, Nelson has designated his gift to endow the Mr. and Mrs. T. W. Chu Undergraduate Scholarship Fund. Because the amount of his gift will leave a remainder that currently qualifies for matching funds from the university, Stanford has already established the scholarship with the matching funds and was able to begin supporting a student last fall.

Meanwhile, his unitrusts provide income to Nelson for life—and he is taking care of family members by providing them with future income as well.

After a 30-year career at Honeywell, Nelson retired as vice president–international. During his tenure he served as chairman and CEO of a wholly owned subsidiary responsible for the development and management of its Asia/Pacific division, headquartered in Tokyo.

He chose to establish his unitrusts through Stanford because he appreciated the options and trusted its investment management expertise. "Stanford offered the most flexibility," he says, "and has a strong record of managing its endowment."

A family tradition of giving

Sometimes the end of one life sets in motion a change in others. In 1954, when Judith Goodheart passed away, her family created a Stanford scholarship in her memory. Her sister, Donna Goodheart Krupp, '42, says the family taught her to give back. Later, they established a scholarship in Donna's honor as well, which has continued to grow over the years with gifts from Donna and her husband, Marc, '34, MD '39, who passed away in 2014.

Donna and Marc both attended Stanford, and both worked for the university at different times. Donna worked in the Department of Drama, establishing Stanford’s first box office, and later served as secretary to the director of the Hoover Library. Marc served on the faculty at Stanford School of Medicine and volunteered extensively for the university, earning Stanford Associates' Gold Spike Award in 1976, the School of Medicine's Albion Walter Hewlett Award in 1987 (which honors an exceptional physician with ties to Stanford), and the J.E. Wallace Sterling "Muleshoe" Lifetime Achievement Award in Medicine in 1991.

In 2005, the couple established the first of several charitable gift annuities at Stanford. With a charitable gift annuity, Stanford pays one or two beneficiaries a fixed amount each year for life in exchange for a gift to the university. Two of their gift annuities will add to the Donna Goodheart Krupp Scholarship Fund. Donna has also planned to bequeath a portion of her estate to the fund.

So far dozens of undergraduate students have benefited from the funds honoring Donna and her sister, some for multiple years. Donna says meeting the recipients over the years has been a true joy, and that she feels greatly indebted to the university for the experiences and education she received.

"Stanford taught me to use my mind," she says. "For that, you have to give back."

You can provide financial aid for generations of students with a bequest or a life income gift. Certain scholarship gifts may qualify for matching funds. Contact Stanford's Office of Planned Giving for help designing a gift to best meet your charitable objectives, as well as your financial and tax goals.

Founding Grant Society Luncheon

Spring 2016

More than 350 Stanford alumni and friends gathered at the Frances C. Arrillaga Alumni Center in April 2016 for a spring Founding Grant Society event. Physician and best-selling author Abraham Verghese, the Linda R. Meier and Joan F. Lane Provostial Professor of Medicine at Stanford, spoke about the importance of "bedside medicine" and the ritual of the physical examination in a technological age. He was joined by Stephen Palumbi, the Harold A. Miller Professor in Marine Sciences and senior fellow at the Stanford Woods Institute for the Environment, who discussed the devastating impact climate change is having on the world's coral reefs.

The Founding Grant Society honors those who plan to leave a legacy for Stanford through their wills and other planned gifts. For more information, please contact the Office of Planned Giving.

PHOTOS: Steve Castillo

Women Who Left a Legacy

Jane Stanford made numerous gifts in her will to relatives and charities while leaving the bulk of her estate to the university. Many women have followed in her footsteps over the years, leaving a legacy at Stanford with bequests of all sizes.

Years ago Audrey Noall Peterson, MA '61, made a gift in honor of two friends that will literally last forever.

In her will, she designated a portion of her estate to create a fund for music at Stanford. She named the fund in honor of Leland Smith, a longtime music professor at the university, and his wife, Edith, an artist and close friend of Peterson's from college.

Peterson's gift helped bring unparalleled vitality to the music department—even now, a generation later, she's advancing the work of another music professor as he pushes the boundaries of the field.

Friends and Visionaries

The story of Leland and Edith Smith is one of lifelong companionship and artistic innovation. The couple met in 1936 when they were just 11 years old, growing up and riding bicycles together all over their hometown of Oakland, California. Both went on to study at the University of California, Berkeley, staying to earn master's degrees—he in music, she in art. They married and traveled through Europe on mopeds before starting a family, eventually settling in Palo Alto to raise their three children when Leland joined the music faculty at Stanford in 1958.

A pioneering composer and computer programmer, Leland has been widely credited with leading music publishing into the digital age. He cofounded Stanford's legendary Center for Computer Research in Music and Acoustics (CCRMA)—one of the foremost centers for computer music and related research—and developed the first music typography software of its kind, known as SCORE, which remains the quality standard today.

Leland taught music composition and theory at Stanford for more than 30 years until he retired in 1992. Edith—an early visionary in digital printmaking, as well as a prolific painter and engraver—taught art at colleges in the San Francisco Bay Area and lectured around the world.

Both passed away in recent years, after 65 years of marriage and a lifetime devoted to art and music. But countless future generations of students will benefit from the fund Peterson established in her friends' honor.

Inspiring Future Generations

Today the Leland and Edith Smith Fund for Music supports the work of Mark Applebaum, a Stanford professor who—like Leland and Edith Smith before him—is a true pioneer in his field. A masterful jazz musician, Applebaum is better known for his idiosyncratic experimental compositions—for example, a chamber piece composed of obsessive page turns, an invented sign language choreographed to sound, and a concerto for florist and orchestra. (The symphony is accompanied by a performance artist creating a magnificent flower arrangement.)

Applebaum is also renowned for his handcrafted "sound sculptures," electro-acoustic instruments made of junk, hardware, and other unconventional materials. His 2012 TED talk ("The Mad Scientist of Music") offers a spirited demonstration of one made with combs, doorstops, nails, squeaky wheels, and other unlikely objects that are plucked, scratched, bowed, and modified by a battery of live electronics; the online video has clocked more than 2.5 million views to date.

Often compared with legendary avant-garde musicians Frank Zappa and John Cage, Applebaum has performed and taught all over the world, inspiring legions of students over the years.

In honoring Leland Smith's legacy at Stanford, Audrey Peterson left a lasting one of her own.

Founding Grant Society Luncheon

April 2017

More than 340 Stanford alumni and friends gathered at the Frances C. Arrillaga Alumni Center in April 2017 for the annual Founding Grant Society meeting. Attendees heard a presentation by Frank Longo, the George E. and Lucy Becker Professor and chair of the Department of Neurology and Neurological Sciences, on how to counteract the effects of dementia and maintain cognitive health. Sigrid Close, associate professor of aeronautics and astronautics, spoke about the effects of space dust on satellites orbiting Earth.

The Founding Grant Society honors those who plan to leave a legacy for Stanford through bequests and other planned gifts. For more information, please contact the Office of Planned Giving.

PHOTOS: Steve Castillo

When Doug Brown, '59, MBA '61, joined the Founding Grant Society, he became a part of a welcoming community of alumni and friends who share a love for Stanford.

As chairman of the Founding Grant Society board for the last 15 years, he has watched the community grow to 3,478 members, with 149 people joining just in this past year.

Brown explains what it means to be part of the Founding Grant Society.

What is the Founding Grant Society?

The Founding Grant Society is a community of extraordinary people who are making future gifts to Stanford through bequests, charitable remainder trusts, and other life income gifts. There are no dues to join, and as a member you are invited to special events. The university publicly recognizes Founding Grant Society members who have expressly given permission to list their names. Of course, you can also choose to remain anonymous, if you prefer.

Why be a part of the Founding Grant Society?

Members of the Founding Grant Society are the most wonderful and supportive group of individuals. They all love Stanford—they care so much. The event is always popular and each year there is a feeling of great enthusiasm at our gatherings. For me, Stanford has been an important part of my life since I attended as an undergraduate student and later to earn my MBA. I’ve stayed involved throughout the years, attending and helping to organize reunion events and being a member of the Stanford Board of Trustees. In the Graduate School of Business, I support students through a fellowship in honor of my late brother, Ken. Making a planned gift is another way that I can provide lasting support for Stanford. It is wonderful to know that my gift will help the university for many years in the future.

"What inspires me the most is the good that comes from gifts to Stanford, and the university's commitment to educating future leaders, making a difference in people's lives, and benefiting humanity and the world."

—Doug Brown, '59, MBA '61

What happens at the Founding Grant Society events?

Members are invited to luncheons or special events that feature talks by Stanford professors. In April, we heard from Frank Longo, the George E. and Lucy Becker Professor and chair of the Department of Neurology and Neurological Sciences, and Sigrid Close, associate professor of aeronautics and astronautics.

In the past, we’ve heard from other notable faculty such as Abraham Verghese, the Linda R. Meier and Joan F. Lane Provostial Professor of Medicine. We've enjoyed fascinating presentations from professors from all over campus covering everything from Stanford athletics to stem cell research. There have also been performances by student musical groups and the incredible St. Lawrence String Quartet. It's a terrific way to connect with friends old and new.

How does the Founding Grant Society honor the original mission of Jane and Leland Stanford?

We have a philosophical tie to the original founding grant. The university was founded as a memorial gift from the Stanford family honoring their son, Leland. The idea that we're perpetuating their founding grant and keeping alive the Stanfords' legacy is a powerful part of being a member of the Founding Grant Society.

Why make a planned gift to Stanford?

People may ask, does Stanford really need my contribution? My answer is yes, because at Stanford, you know every dollar will support students and programs of excellence, programs that are innovative and pathbreaking. What inspires me the most is the good that comes from gifts to Stanford, and the university's commitment to educating future leaders, making a difference in people's lives, and benefiting humanity and the world. Of course, it also can be a wonderful financial arrangement for many people. You can make sure to take care of yourself during your life and know that you’re also taking care of Stanford in the future.

By Philip Golden, '81, Senior Associate Director, Office of Planned Giving

Fall 2015

If you wish to provide for your children and make a significant future gift to charity, you may wonder if you must choose between the two. In fact, you can achieve both goals when your estate plan includes a testamentary charitable remainder unitrust (testamentary CRUT), such as the one planned by Sue and Vic Althouse, PhD '61.

Creators of testamentary CRUTs have two characteristics. First, they want to leave part of their estate to create a managed income stream for one or more individuals—most commonly their children, but it may be for their spouse, another relative, or a friend. Second, they want to create a charitable legacy. Estate tax reduction or elimination is also a motive for some individuals.

A testamentary CRUT is created when a decedent's assets pass to a trustee. The trustee generally invests the assets to maximize the total return over time and also makes annual payments to one or more beneficiaries. The amount of the annual payments will vary depending on several factors including investment performance. The trust may be designed and administered to increase the likelihood that the annual payments keep pace with, or outpace, inflation. The payments may continue for the income beneficiary's lifetime or for a term of years, after which the trust assets pass to the charities designated by the decedent.

A testamentary CRUT is not an all-or-nothing proposition. Many people use part of their estate to make outright gifts to their children and another part to augment their children's income with a testamentary CRUT.

A charitable remainder unitrust (simply, a CRUT) also can be created during your lifetime. This type of CRUT provides an income stream either for you or for others and entitles you to a charitable income tax deduction. When appreciated assets are used to fund a CRUT, the trustee generally pays no tax on the capital gain at the time the assets are sold. This preservation of capital in the form of tax savings allows the trustee to produce a larger income stream for you or other beneficiary(ies) than would otherwise be possible if the assets were sold outside of the trust. Stanford can serve as trustee of CRUTs created during the donor's lifetime and testamentary CRUTs.

Stanford's charitable trust program is one of the largest among all U.S. colleges and universities. Our dedicated group of professionals can help you learn more about the different types of charitable trusts and options for unitrusts managed by Stanford, such as investing with the university's endowment.

Eliminate the Tax Burden of Your 2017 IRA Required Minimum Distribution

If you are 70½ or older, don't forget about the IRA charitable rollover provision. This allows you to transfer up to $100,000 from your Individual Retirement Account (IRA) to Stanford and other favorite charities tax-free. Please visit our IRA and Other Retirement Gifts page for more information.

Maximize Your 2017 Deductions with Year-End Gifts to Stanford University

Be mindful of deadlines, especially in a year when December 31 falls on a Sunday.

• Gifts of securities made through a brokerage account must be received into Stanford's account by Friday, December 29. Because these transfers can take two weeks or more, please contact your broker early in December to ensure timely processing.
• Gifts made by check sent via the U.S. mail must be postmarked by December 31. If you use a private carrier like UPS or FedEx, the check must arrive at Stanford no later than December 29.
• Credit card gifts must be charged to the credit card no later than December 31. Processing deadlines vary among charities, but you must let Stanford know by 5 p.m. Pacific Time on December 29.
• Gifts of real estate and other illiquid assets take time. Please contact Stanford's Office of Planned Giving as soon as possible so we can begin the review process immediately.

For security transfer instructions, mailing addresses, and to make a gift online, please visit our How to Give page.