Albright President McMillan Endows Scholarship That Will Provide Income for Life

Photo of Lex McMillan and his wifeOne of Albright College President Lex McMillan’s favorite quotes is from Cicero: “Gratitude is not only the greatest of virtues but the parent of all the others.” Nothing exemplifies this more than his and his wife Dottie’s desire to establish the Lex O. McMillan and Dorothy McMillan Endowed Scholarship Fund—financed with a deferred charitable gift annuity that will secure income for them in retirement.

Like everything that Dr. McMillan does, establishing this scholarship was done with careful thought and planning. “Our giving is a reflection of our deep gratitude to those institutions that share our values,” he said. “Albright ranks high among our charitable priorities because we know that every day young lives are transformed here, and one of the greatest challenges we face is helping our students meet the costs of the Albright experience. My own college experience was made possible by generous donors who supported me.

“This specific method of giving has multiple financial benefits to donors,” Dr. McMillan continued. “Not only does one receive a tax deduction, but one has guaranteed income for life. It’s an enormously attractive way to combine charitable goals with tax-wise estate planning. Making this gift to Albright and many others over the years has given us great joy.”

Here is how a charitable gift annuity works: Through a transfer of cash or other property to Albright, Albright guarantees to make lifetime payments—for up to two annuitants—beginning at a future date of their choosing. There is a federal income-tax deduction for a portion of the McMillans’ gift the year the annuity is established. The future benefit of this type of life-income gift is that it gives the donor guaranteed payments for life that are favorably taxed. When the gift is funded with cash, part of the payments will be tax-free. In the event that the gift is funded with appreciated property, part will be taxed as capital gain, part will be tax-free, and part will be taxed as ordinary income. Finally, the gift will provide generous support for Albright—and when the first payments are deferred that support will be even greater.

Wise planning and a grateful and generous spirit have marked the McMillan presidency. Now that same spirit will continue long into the future after Dr. McMillan’s retirement.

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