2001-2002 Annual Report

The Difference of a “Small” Gift T he past 18 months have been very difficult for the average American investor. Significant losses have replaced the double-digit investment gains that we all came to expect in the last half of the 1990s. These economic conditions have made it difficult for everyone, especially retirees, who depend on investment income and for students who are struggling to produce sufficient funds to cover their educational expenses. The stability of a charitable gift annuity was often overlooked in favor of higher-risk, higher-reward investments in the mid to late ’90s. Today, however, retirees face the dilemma of creating income from their investments while risking loss of asset value by staying in the market. We are pleased to recommend gift annuities as an attractive low-risk, high-income gift plan as a protection against market volatility. On December 1, 2002, the average five-year CD interest rate in the U.S. was 3.28 percent. If you refer to the table to the right, you will see that the gift annuity rates for couples in their retirement years are significantly higher than the five-year CD rate. In exchange for an annuity gift, Cedarville will make fixed payments to the donor and spouse as long as either is living. Payments never change because they quarter. Many Torch Club members testify that skipping a fast food meal or other small purchase each month easily provides the extra money for this gift. One of those who gave through the Torch Club was Randy Oswald, a 1991 graduate. “I wanted students to have the same Cedarville experience I had,” Oswald noted, “but I could not do anything other than small gifts. Cedarville was very quick to thank me for those small gifts and actually made it easy for me to give. Soon I found additional opportunities in a tax return, a rebate check, a third paycheck. As God blessed, I increased my giving. It became a habit.” Four years later, Oswald’s habit led him to become a President’s Associate (giving $1,000 or more annually); however, most Torch Club members remain at that level and do so year after year. “Some wonder if a small gift makes a difference,” Brock explained. “We do have some friends that give large gifts, yet there are thousands who are giving small gifts. Together, they make a significant difference. That provides a whole new perspective on the potential influence of a small gift. When we say that Cedarville is all about God and people, we are talking about thousands being involved, each in a valued way.” Protect Your Retirement Income From Market Volatility are not based on investment performance. In addition, a majority of the annuity income is tax free—an important benefit not offered by many other income- producing plans. Finally, the income tax liability can be reduced even further by utilizing the current-year income tax deduction created by the annuity gift. Do you need supplemental retirement income? If so, please contact Dave Bartlett or Kim Longo in the gift planning office at 1-800-766-1115. We look forward to helping you secure the future of your family and Cedarville University. “W e always say that the value of a gift is not based upon its size. Value is found in its giving,” shared Jeff Brock, director of the Annual Fund. “And, significance is not necessarily proportional to size. Cedarville stands as a testament to the influence of small gifts.” Of the more than $7 million in gifts received by Cedarville in 2001-2002, most gifts were less than $100. During that same period, the Annual Fund, the operational fund that bridges the gap between what students pay and what it costs Cedarville to provide their education, was made up of gifts that averaged even less. “Last year, almost 4,000 ‘giving units’ (single individuals or married couples) gave one or more gifts to the Annual Fund,” Brock explained. “The total number of gifts was well over 8,000. Almost half of the gifts we received were less than $50 each.” The largest giving program within the Annual Fund is the Torch Club. This group of individuals has been, and continues to be, foundational to the success of the Annual Fund. In 2002, almost 1,000 Torch Club members gave $100 or more in the course of the year, many doing so with gifts of $10 a month or $25 each Gift Annuity Rates for Couples 65 70 75 80 85 90 5.8 6.1 6.5 7.1 8.1 9.5 6.3 6.7 7.3 8.3 9.7 11.5 Age of Donor (& Spouse) Two-Life Payout Rate One-Life Payout Rate Randy and Cathy Oswald