Eleanor and Paul Chadderton smiling

Eleanor and Paul Chadderton

In her classes at Penn State Shenango, Economics major Suzetta McKnight is studying financial issues-but the sophomore has already learned some tough lessons on her own. "Paying for my college education has been hard for my family," she says. "I waitress to help pay the bills, but it's difficult to balance work and school. The scholarship I received from Paul and Eleanor Chadderton has meant that I can work less and spend more time studying. My grades have improved, and so has my family's financial stress."

That's the kind of impact that Paul '09h and Eleanor Chadderton hoped to see when they created a charitable lead trust to support Penn State Shenango in 2010. "As a father of two Penn State graduates, a business owner, and an active member of the community, I have seen firsthand the important role the University plays in our area," explains Mr. Chadderton, retired owner and president of Chadderton Trucking, Inc., in Sharon, Pennsylvania, and a member of the Penn State Shenango Advisory Board. "Kids need more education today than when I was young, and it's only getting harder for them to find the money to afford it. Eleanor and I are trying to do whatever we can to help."

The Chaddertons' charitable lead trust, created through a gift of $500,000, is providing a $20,000 annuity to Penn State Shenango for ten years. Although the trust's first distribution was only recently received by the campus, it has already provided $15,000 in scholarship support for students like Suzetta. The remaining $5,000 of this year's gift was used to partially fund an interdisciplinary spring break service trip in March, which sent fourteen students to Urubamba, Peru, to help indigenous families replace their kitchens' traditional open-pit fire with with clean-burning stoves and chimneys. Because the gift provides unrestricted support, it can be used at the discretion of the chancellor for the greatest needs of the campus each year.

The Chadderton's charitable lead trust will continue to create exceptional educational opportunities for students at the Shenango campus for the next ten years. At that time, the trust's remaining assets, including any appreciation, will be transferred to the couple's beneficiaries at a reduced tax cost. "I know I'm not going to live forever," Mr. Chadderton jokes. "I just want to get our estate in order and hopefully benefit future generations."

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.

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