Case Studies
Several years ago, a 57-year old alumna called Smith’s planned giving office because she, her husband, and some friends were looking for a way to help a classmate who was in financial distress. They wished to provide her with an income stream and support their shared alma mater at the same time. The solution: gifts through Smith’s Pooled Income Fund.

The classmate now receives quarterly payments that will continue for her lifetime, and the donors completely avoided capital gains and were able to claim an immediate charitable income tax deduction.

Janet ’45 wished to augment the retirement income of two long-time housekeepers who were both in their 70s. Using charitable gift annuities, Janet was able to lock in a high fixed rate of return for each of these friends for their lifetimes.

“It feels good to help people who have meant a lot to my family, and to know that ultimately my gifts will support the mission of Smith College.”

Each income beneficiary receives income based on her date of birth. Janet claimed a charitable tax deduction for each gift. (Note: only a portion of the gift is deductible, since it is only partially charitable). Smith helped Janet determine what size gift for each housekeeper would keep her within the $11,000 annual gift tax exclusion. She repeated her gifts the next year.

Holly ’69 wanted to provide a “pension” of sorts to the nanny who devoted ten years to Holly’s boys when they were small. Because the nanny is not yet retirement age, Holly used a charitable remainder trust invested initially for growth which pays little income now. The trust will “flip” to produce more income when the nanny reaches age 65.

“Although Rose was devoted to my children, we were unable to provide a pension plan for her. I have established a charitable remainder trust that provides retirement income to this friend who helped us so much when we really needed childcare. After Rose’s death, the trust principal will endow a scholarship fund at Smith College.”