Creating Internships Through a Real Estate–Funded Trust

Joe Defilippi and wife Bonnie smiling Whether he's working with steel or students, Joe Defilippi knows how to take great raw material and transform it into something extraordinary. As the director of product development for U.S. Steel, he recruited top undergraduates from Penn State New Kensington and other educational institutions for internships, and many have gone on to successful careers with the company. Although Joe retired last year, he and his wife, Bonnie, are still creating opportunities for New Kensington students to test their abilities in real-world settings. Through the Joseph and Bonnie Defilippi Internship Scholarships, the couple hopes to encourage students, faculty, and companies to build lasting relationships.

"Over the years, Penn State New Kensington has emphasized the importance of going beyond ‘book learning' to cultivate graduates with critical thinking skills and a commitment to lifelong learning," says Joe, who has served on the campus advisory board for more than three decades. "Internships are a way to get young people to apply their knowledge outside the classroom, and they can also be a way to strengthen the connections between the campus and the community."

Recipients of the Defilippi Internship Scholarships will receive a stipend and work closely with faculty mentors to find an internship with an area company that offers meaningful hands-on experience. The faculty, who will also receive funds from the endowment, will continue to monitor the students' progress and collaborate with the company throughout the internship. Joe is leveraging his commitment by going to possible partners in the corporate world and asking them to contribute to the endowment, too.

"We think that it's a win-win-win situation," says Joe. "Students get ready to hit the ground running in their careers, faculty members learn from their counterparts in industry and become better consultants and partners, and companies get a long-term look at top talent."

The gift is also a win for the Defilippis, who established the endowment with a charitable remainder unitrust funded by real estate. "We wanted foremost to make a commitment to For the Future: The Campaign for Penn State Students," says Joe, who is a member and former chair of the campus fundraising committee. "Penn State showed us how a charitable remainder unitrust would seed an idea that is very important to us, and also allow us the benefit of replacement income and a charitable tax deduction. Don't put off making a gift. There are many ways to provide a benefit to Penn State as well as to yourself."

A charitable bequest is one or two sentences in your will or living trust that leave to The Pennsylvania State University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to The Pennsylvania State University, a nonprofit corporation currently located at c/o Office of Gift Planning, 212 The 103 Building, University Park, PA 16802, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Penn State or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Penn State as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Penn State as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Penn State where you agree to make a gift to Penn State and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

Personal Estate Planning Kit Request Form

Please provide the following information to view the materials for planning your estate.

eBrochure Request Form

Please provide the following information to view the brochure.