Planned Giving: A Win-Win-Win Gift Annuity

 

early-70s aged couple pose together in front of a large building in Pakistan.

In the years since he was a curious teenager exploring the mysteries of science in Sam Tatnall’s class, Randy Barba OPC ’71 has built a powerful philanthropic legacy at Penn Charter. 

“Penn Charter went a long way to forming the basis of my future career and outlook on life,” Barba said, explaining his commitment to PC. He entered PC in 10th grade and “those three years were incredibly consequential for me.” 

Barba’s financial support of the school began with a gift to the Annual Fund, and he has given each year for the last 31 years. In 2016, in honor of his 45th reunion, Barba made a sizable contribution to establish, with his classmates, the Samuel M. Tatnall Memorial Science Fund. The fund supports the science and innovation curriculum and honors the memory of the charismatic physics teacher who inspired Barba and many OPCs to follow their passions in science. 

Next, he and his wife, Lorraine, put Penn Charter in their will. And now, Barba’s most recent gift is a tax-savvy gift annuity that involves transferring to Penn Charter stock valued at $100,000. The annuity provides multiple benefits:

• Barba gives Penn Charter right now a portion of the bequest he planned for the school to receive upon his death. 

• He reallocates profit he has made in the market in the last 10 years to a charitable institution, PC, reducing capital gains taxes in the current year. 

• And, he increases his cash flow. Penn Charter will invest the $100,000 and agrees to pay him 4.6 percent interest, or about $1,150 quarterly, for his lifetime and Lorraine’s. 

“The market is at a peak,” Barba reasons. “I’ve got gains that are on the way to 300 percent. I can convert load-dividend stock to a higher-rate annuity and increase my cash flow, which helps fund our love of travel and adventure. 

“I’ve accomplished a couple things at the same time. I know I’m going to give the money away anyway, and I did it as tax-efficiently as possible. Why wouldn’t I do that?” 

“I’m always looking for ways to give to Penn Charter,” Barba said. “I had a gangbusters time there academically, and I think the place is fabulous—just such a vibrant intellectual environment.” PC 

Photo caption: Since his retirement in 2004 as a partner with Accenture, Randy Barba and his wife, Lorraine, have escaped the Chicago winters to travel around the globe, including, shown here, a 2019 trip in the Southern Indus Valley in Pakistan.

SIDEBAR

The How Far? campaign set out to raise 15 percent of the $75 million capital campaign goal through planned gifts and bequests from donors committed to Penn Charter.

We have exceeded that goal. Since the campaign began we have received $15,015,836.20 in planned gifts from 20 donors.

For information about planned giving, and gift annuities specifically, contact Shannon Makhija, Director of Advancement Services, smakhija@penncharter.com or 215-844-3460 ext. 128.

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