Impact of Planned Giving James F. Obear Today’s Presentation, The Impact of Planned Giving will touch on how we as a university have been impacted by what we call estate gifts or planned gifts. Some of the early slides will show you What kind of resources we are talking about in the future Why we need to help the next individuals who will ultimately be in our roles, just as we have been the beneficiary of someone’s previous work and generosity by way of a planned gift I will end with some brief stories about recent realized and established bequests and let you know how you can help to create a brighter future for our students, faculty, staff, retirees and university by knowing a little more about planned giving.

Tennessee Legacies represents one of the publications our office of Planned Giving produces and mails to our alumni and friends. We understand individuals have a life long relationship with UT and so we want to market to them in a variety of ways, print publications, online messages, tax updates like the extension of the IRA , We have representatives from our Planned Giving Office with us today. We appreciated the partnership we have and their contact information is listed at the end of my presentation. They can answer the really difficult questions. Has UT in Will Wanted to do a CGA

UTK Bequest Expectancies The next three slide are a bar graph, an easier to read numbers chart and some of the detail behind the projections of our bequest expectancies for the UTK. The chart spikes in 2032. as we go to the next slide you can see the dollar amounts we have on file for each year.

UTK Bequest Expectancies Year Realized Pledged Amount 2014 $3,000,000.00 2015 $352,504.00 2016 $5,145,005.00 2017 $10,003,418.00 2018 $4,447,670.19 2019 $8,305,408.00 2020 $10,520,095.61 2021 $11,170,158.61 2022 $20,206,016.00 2023 $7,103,012.00 2024 $1,558,011.00 2025 $6,202,504.00 2026 $15,994,001.00 2027 $9,460,004.00 2028 $18,434,987.00 2029 $31,823,009.00 2030 $20,050,000.00 2031 $40,330,117.00 Year Realized Pledged Amount 2032 $138,035,126.00 2033 $16,620,388.65 2034 $11,513,408.50 2035 $31,387,942.00 2036 $24,634,001.00 2037 $9,443,405.00 2038 $27,145,411.00 2039 $9,156,002.00 2040 $13,365,000.00 2041 $9,325,000.00 2042 $1,939,000.00 2043 $16,149,600.00 2044 $812,000.00 2045 $1,180,001.00 2046 $4,500,004.00 2047 $2,551,407.50 2049 $1,062,500.00 2057 $60,000.00 2064 $100,000.00 2099 $43,996,817.67 This represents planned gifts we have on file as bequest expectancies. It uses the actuarial tables for predicting life expectancies of our alumni and friends who have informed us that we are indeed a beneficiary of a planned gift. We have an estimated amount of the gift from the donor and a birth date that allows us to show you these predictions I am sure some in the audience are trying to figure out who the donors are that have a life expectance ending in 2032 as that represents #138 Million dollars. Others might be asking about 2099. This represents individual(s) who we don’t have a birth date on Finally, remember this is a fluid chart as we book new estate gifts and benefit from realized bequests I will talk about later

UTK Bequest Expectancy Projections Notes IMPORTANT NOTES: The previous slide includes $44 million in expectancies, which our records did not contain the dates of birth for both spouses. This amount would bring the total to approximately $587 million. The previous slide does not include 3rd party managed trusts paying non-donor beneficiaries and open estates, which would add approximately $75+ million to the total. The previous slide does not reflect approximately $45 million held in trust by the university. The previous slide does not reflect approximately $2 million for charitable gift annuities. We did add the $44 million to the chart under 2099. $587 Million Dollars in projected bequest expectancies. Wow the UT Future looks Bright!!! As the infomercial says (But wait there’s more) 3rd Party Managed Trusts and Open Estate $75 Million PLUS $45 Million held in trust by the university Our Charitable Gift Annuity Program which is relative new for UT at $2 Million That’s all great, but as a university administrator I can’t access that today, so how is Planned Giving benefitting me today.

UTK Realized Bequests – Fiscal Year A snap shop of realized bequests that have added to the UTK colleges and units since 2003.

UTK Realized Bequests – Fiscal Year FY Realized Bequests 2003 $4,408,406 2004 $3,544,587 2005 $2,696,769 2006 $6,636,122 2007 $3,538,067 2008 $4,992,505 2009 $3,050,739 2010 $6,422,437 2011 $3,907,424 2012 $4,638,474 2013 $5,033,686 Just under $49 Million Dollars in total. Like many universities we are better tracking our planned gifts which in the previous campaign represented a significant portion of the overall goal. Some units were in excess of 50% planned gifts (WOODY/JAMES WHAT WAS OUR OVERALL PERCENTAGE Look at the final campaign reports from Bruce January 2012) You have and are benefitting from the work done by previous faculty, directors, deans, administrators and development professionals who worked with those alumni and friends decades ago to establish their planned gifts. These planned gifts become endowments and the earnings from these endowments are spent on: Faculty support like Chip mentioned Scholarships for students Programmatic support Even capital building projects Now “how can you pay it forward” 2003-2013 Bequest 11 Year Average $4,442,656.00

Recent Gifts Making an Impact Institute of Agriculture (Scholarship) Business Administration (Faculty & Scholarship) Engineering (Scholarship) Library and University Wide (Unrestricted and Scholarship) Education, Health and Human Sciences (Faculty) AG (Scholarship): Some individuals want to be very private about what they are doing. They bury it with a shovel, then bury the shovel, throw some dirt on it and let it grow. Rose Hart $300K 2011 Scholarship CVM CBA Has been the beneficiary of 2 separate bequests recently $500K (Faculty and Scholarship) Designations COE Two recent estate gifts closed will ultimately provide support to students (Scholarship) One donor created a cash endowment several years ago and was so pleased they recently documented an estate gift which will ultimately increase the impact of the original endowment. (Paula Ball, Texas) Another donor couple created a planned gift through a Testamentary Trust and our hope is the donors will begin to fund This during lifetime. (William Browney): Chem. Eng. Don’t use name LIB & UW We are currently settling an estate that will benefit both areas Husband and wife created multiple estate gifts that will support students through university wide scholarships and support the Library through an endowment the dean can use for the betterment of our Library (Vehicles: Insurance, CGA, CRT, and Bequest) (Wayne Mitchell Engineering Dentist Jeannine Mitchell EHHS Librarian Board) EHHS received faculty support for a specific department through a realized bequest Listen closely: After 10 years removed from serving as a Volunteer Board Member, this donor left the department a gift through an IRA Retail and Hospitality Management) Fred Proffitt ($200K appr.)

We Need Your Assistance Engage your alumni and friends in volunteer positions throughout your units Identify potential planned gift prospects Former Students Colleagues Faculty, Staff and Retirees With your assistance “The Future is so Bright…” The previous examples include planned gifts that are and will be impactful for your areas. Help us by ENGAGING alumni and friends with the university in volunteer leadership positions Dean Bob Rider and Department Head Larry McCay and their development officers talked about this during their presentation. Serving on a Board becomes a great Touch Point that can help lead alumni and friends to make an ultimate gift to the university through a planned gift Work with our office to identify individuals you know Graduate Students you are still close with Colleagues in your field of study Fellow connections you have including retirees In Closing we are all here to work on behalf of our “University” Your relationships may be what it takes to open the doors to tomorrows next great gifts The Future is so Bright I Gotta Wear Shades! My distinct pleasure to introduce our next two presenters, Marc Gibson and Sally Morris. Marc is our Director of Development for Corporate Relations. He has been with our staff for the last three plus years building relationships with our corporate supporters Sally joined our team about a year and a half ago as our Director of Development for Foundation Relations. Sally has brought about a greater focus to our efforts when it come to our foundation fundraising. They are going to share with you giving trends in the corporate and foundation world By inviting individuals on to your boards who can make a difference. Think about your sphere or circle of influence Who can you introduce us to that might be capable and willing to make an estate gift

Office of Planned Giving 600 Andy Holt Tower Knoxville, TN 37996 865-974-2115 http://www.gftpln.org/Home Woody Henderson Linda Friedland Assistant Vice President of Planned Giving Senior Director of Planned Giving 865-974-2326 865-974-2334 whenderson@utfi.org lfriedland@utfi.org Angelia Nystrom Eric Schimmoeller Director of Planned Giving Associate Director of Planned Giving 865-974-8634 865-974-4513 anystrom@utfi.org erics@utfi.org

James F. Obear Assistant Vice Chancellor, Development University of Tennessee Knoxville 1609 Melrose Avenue Knoxville, TN 37996 865-974-2370 jobear@utfi.org