The First 25 Years of the Dartmouth Bequest and Estate planning Program

"THE MOST DELICATE AND DECISIVE FORM OF ASSISTANCE"

Speaking to a group of alumni in 1956, President John Sloan Dickey described the role of the Bequest and Estate Planning Program as "the most delicate and decisive form of assistance rendered in keeping Dartmouth's future a strong one. . . Although the groundwork for the Bequest Program took place earlier, it was during President Dickey's administration that it was formally inaugurated (1951) and became firmly established as one of the major alumni support programs of the College. The key words he used in 1956, "delicate" and "decisive," continue to characterize a program which has added $67- million over the past twenty-five years to Dartmouth's resources.

Testamentary giving is, by its very nature, the most thoughtful, personal and "delicate" form of philanthropy. It is the final opportunity each of us has to benefit the College. For Dartmouth the Bequest Program has also been "decisive" in helping the College to navigate the difficult waters of economic uncertainty and financial needs over the past quarter century. With its concentration on new endowment funds, the program emphasizes the vital tradition of each Dartmouth generation helping to provide the resources to sustain, succeeding generations. Each gift or bequest under the program implies a deep and abiding concern for Dartmouth's future welfare and her ability to maintain her educational preeminence and independence in the many years ahead.

Program Origins

Historically speaking, the royal charter of 1769, which created Dartmouth College, granted to the Trustees the powers "...to have, accept and receive any rents, profits, annuities, gifts, legacies, donations, or bequests of any kind whatsoever. ..." But it was not until 1934 that the Alumni Council began to recognize the potential importance of bequests to the long-term growth and financial stability of the College. A Bequest Survey Committee was formed, and despite the fact that its recommendations for a program were approved in the following year, the program was left aborning. Following World War II, the Council established a "Committee on Bequests" to reactivate the earlier study and formulate plans for a new program.

Although Dartmouth was one of the first colleges or universities to consider an alumni Program of estate planned gifts, or deferred giving, it was not until 1951 that the Alumni Council formally established the Bequest Program, and in that first year total program receipts were $382,432. Each class beyond its twenty-fifth reunion was asked to appoint a bequest chairman, and by 1953 when the name "Bequest and Estate Planning Program" was adopted by the Council, all the necessary planning and groundwork were finally in place. Forty classes, representing 7,800 Dartmouth men, were now engaged in a new enterprise to help provide for the future welfare of the College.

Today, participating classes extend from the Class of 1905 to the Class of 1950, which will begin its program activities this fall. They represent 16,000 alumni and 3,000 widows. Although the Alumni Council Bequest Committee periodically considers the advisability of bringing classes into the program at younger ages, the twenty-fifth reunion continues to be the starting date for each class in the belief that personal and family obligations prevent most alumni from giving serious consideration to including the College in their estate plans during earlier years. In addition to the Council's Bequest Committee, which concerns itself mainly with policy matters and basic program philosophy, the other governing body for the program is the Association of Class Bequest Chairmen, first organized in 1959. This group of dedicated chairmen and co-chairmen meets annually in Hanover to review and revise operational aspects of the program, ranging from the technicalities of life income giving to the preparation of annual communications to classmates.

Objectives

Throughout Dartmouth's history, the College, like all private educational institutions, has depended in a major way on private philanthropy - particularly the voluntary support of alumni and other concerned individuals. This is more true today than ever before. There are three basic types of such individual support, each with its own objective. First, the annual Alumni Fund provides an essential supplement to tuition and student fees for the current operating budget. Second, out-right capital gift solicitation among Dartmouth's constituencies is required to provide for plant and program needs. And finally, an ongoing program of bequests and estate planning gifts is the traditional source of new endowment strength which gives the College the financial foundation and continuity upon which it can confidently plan for the future.

This approach to personal giving has served Dartmouth well over the past twenty-five years. Year after year the Alumni Fund has provided a crucial 10%-12% of the College's annual income and has grown from $577,263 in 1951 to its record-breaking total of $4,201,594 in 1975. The resources for the substantial number of new plant facilities constructed in the last twenty years and for raising Dartmouth's educational program to its present level of excellence have been provided mainly by outright capital gifts, especially during the Capital Gifts Campaign of 1957-60 ($l7-million) and the Third Century Fund of 1967-70 ($53-million). And in the twenty-five years since 1951, the Bequest Program has realized $67-million, most of which was added to Dartmouth's endowment. In fact, the Bequest Program is the primary ongoing alumni program which seeks to provide the resources for the future needs of the College.

For the Individual alumnus, as well as the College, these types of giving also reflect his own giving interests and capabilities: annual giving is normally from income; periodic lifetime gifts are made from capital funds to help meet major institutional needs; and bequests represent the final opportunity to express one's devotion and support of Dartmouth.

The $7,000-a-Day Record

A retrospective look of this kind will inevitably include a statistical summary of the growth of the program. The accompanying charts and lists describe these developments in short-hand form. By any measure, the growth of the Bequest Program from 1951 through 1975 has been most impressive. In dollar realizations, program receipts have gone from $382,432 in 1951 to a cumulative total of $67-million at the end of fiscal 1975 (an average of about $7,000 a day). During the first five-year interval (1951-55), total receipts were $2,344,117; for the most recent five-year period (1971-75), the comparable total was $23,807,645. The number of new bequests received averaged 18 per year for the first fifteen years (1951-65) of the program and 30 per year for the last ten years (1966-75), compared to an average of only 5 per year for the period 1915-50 inclusive.

The most remarkable area of growth has been in the life income giving category. Gifts to the College with retained life income for the donor and/or other beneficiaries (i.e., trusts and annuities) have grown in total dollar value from $214,880 during 1951-55 to $4,854,424 for the last five years. There are now over 300 trusts on the College books with aggregate assets of $12,007,922. In this regard, out of the $67-million credited to the overall program in the last twenty-five years, almost one-third of that amount has come from lifetime giving through trusts and other estate planning gifts, with two-thirds being realized from bequests.

Equally impressive has been the steady and encouraging growth of "bequest expectancies" since 1951. Through periodic program questionnaires and other means, alumni in participating classes share information with their bequest chairmen, as to estate planning previsions in favor of the College, in 1951 there were only 125 known expectancies. That figure has grown to more than 1300 in 1975 and symbolizes perhaps more than any other statistic the deep devotion of Dartmouth men and women and their concern for the welfare of the College. Another 1200-plus alumni indicated that they hope or intend to provide for Dartmouth when circumstances permit.

The following breakdown of total receipts for the past twenty-five years shows the magnitude and distribution of gifts among the four program categories. The record year so far was fiscal 1973 when $6.5-million was received:

Bequests $42,277,027 Life Income Trusts 12,007,922 Estate Planning Gifts 7,632,562 Trusts in Hands of Others 5,219,814

Women of Dartmouth

Although Dartmouth has been co-educational at the undergraduate level only since 1972, a very significant role has been played in the Bequest Program over many years by the distaff side of the Dartmouth family. Wives, widows and close female relatives of Dartmouth men have been wonderfully generous in their support of the College by means of bequests and other forms of deferred giving. Since 1951 there have been 154 bequests from the "Women of Dartmouth," amounting to $10,896,004 or 26% of the total bequest dollars received by the College during the twenty-five year period. These bequests have ranged in amount from $lOO to over $2-million.

The longer life expectancy of women being an actuarial fact, it is not surprising that many Dartmouth men and their wives have made a provision for the College which does not take effect until the death of the survivor of them. Oftentimes the bequest must by necessity be modest, but even so it reflects great devotion to the College, as expressed in a recent letter from a widow of an alumnus: . . and although my estate provision for Dartmouth cannot by circumstances, be a large one, it symbolizes the very deep love my husband and I have for the College and the fond hopes we have for its continuing success in the future." Dartmouth is indeed grateful for every gift and bequest, regardless of its size.

Past Dreams and Future Hopes

The progress of the Bequest Program has outdistanced the dreams of its earliest proponents, the men who developed the concept and made it work. Foremost among these men were Judge John R. McLane '07, who prior to 1951 carried on a one-man program within his own class; William J. Minsch '07, President of the Alumni Council in the midthirties and a prime mover in the early study of an alumni bequest program; Sidney C. Hayward '26, long-time Secretary of the College; Nichol M. Sandoe '19 and Carleton Blunt '26, both chairmen of the Alumni Council Bequest Committee in the early fifties; veteran class bequest chairmen like Herbert A. Wolff '10, Richard P. White 'lB, H. Sheridan Baketel, Jr. '20, Eugene Hotchkiss '22 and Truman T. Metzel '23, all of whom have served continuously since the program's beginning; and most important of all, Ford H. Whelden '25 whose personal imprint on the Bequest Program as Alumni Councilor, class bequest chairman and executive secretary of the program (1957-66) is unequalled.

However, their realized dreams must of necessity give rise to new hopes and expectations for the future. The next twenty-five years will carry Dartmouth to the 21st Century with unrelenting financial needs. During this period twenty-five additional classes of Dartmouth men and women will join the Bequest Program. In order to sustain the program's critical role, these succeeding generations of alumni, like their predecessors, must also become aware of the delicacy and decisiveness of testamentary giving. To paraphrase the heartfelt thought of a veteran bequest chairman, writing to his classmates last year, . . our Dartmouth experience was, after all, largely made possible by the generosity of those who came before us; it is now our turn to provide for the generations of Dartmouth students yet to come."

Bequest ProgramParticipation by Class

(As of June 30, 1975)

Realized Life IncomeBequests Trusts Class Class Bequests Chalrman/ Co-Chalrmen Number Amount Bequest Expectancles Number Amount 1905 Roger W.Brown 10 $ 102,817 8 13$ 201,775 1906 (vacant) 18 4,682,560 7 1 13,075 1907 Leon A. Sprague 21 188,074 10 6 127,007 1908 (vacant) 13 478,064 9 1 20,825 1909 Leon B.Farley 13 133,732 7 1 82,000 1910 Herbert A. Wolff 29 372,729 25 3 16,448 1911 Donald A. Cheney 23 228,725 21 4 76,119 1912 Lewis C. Waterbury 16 173,046 18 1 10,483 1913 Clarence C. Meleney 16 964,920 12 8 69,033 1914 (vacant) 18 804,136 24 9 805,563 1915 Carl K. Gish 19 3,886,244 26 10 1,402,346 1916 H. Burton Lowe 17 83,800 22 1 54,400 1917 (vacant) 17 634,213 37 6 66,903 1918 Richard P. White 15 882,656 32 9 370,246 1919 John W. McCrillis 14 294,280 38 - - 1920 H. Sheridan Baketel, Jr. 8 387,346 38 8 267,513 1921 Thomas V. Cleveland/ 10 259,720 56 35 811,776 Roger C. Wilde 1922 Eugene Hotchkiss/ 7 135,173 33 8 400,448 Walter I. Miller 1923 Chesley T. Bixby/ 13 1,527,705 51 30 674,859 Truman T. Metzel 1924 David B. Dyche/ 10 75,397 70 16 759,691 Harry A. Holmlund 1925 Ford H. Whelden 19 1,966,927 85 26 857,838 1926 Charles S. Bishop 9 321,786 54 7 740,972 1927 Paul R. O'Connell 7 488,454 50 11 142,887 1928 Charles F. Bruder III/ 5 719,084 40 7 270,590 Loren J. R. Westhaver 1929 Jack D. Gunther 4 11,500 51 5 155,333 1930 Lee A. Chilcote 8 114,533 50 9 263,959 1931 John K. Benson/ 4 266,321 38 8 158,599 George C. Nickum 1932 Arthur E. Allen, Jr. - - 36 5 163,951 1933 Judson T. Pierson 2 39,579 42 18 340,698 1934 Arthur J. Leonard 6 123,368 45 2 25,677 1935 AllenS. Brush 5 53,769 27 2 10,056 1936 Paul L. Guibord 4 21,731 47 1 100,668 1937 Francis T. Fenn, Jr. 1 2,000 32 4 101,461 1938 Robert L. Manegold 2 10,500 30 3 182,781 1939 Robert L. Kaiser 1 8,102 36 3 180,655 1940 Gordon K. Wentworth 1 10,000 22 3 225,741 1941 (vacant) 2 11,000 17 - - 1942 Guy A. Swenson, Jr. - - 20 2 260,850 1943 Charles S. Feeney - - 6 - - 1944 John W. Berry 1 2,955 8 - - 1945 Frank M. Hutchins 3 22,074 7 - - 1946 Frank K. Ettari 2 23,957 4 - - 1947 HughM. Chapin - - 9 - - 1948 Burton Elliott 1 500 1 - - 1949 Robert C. Rooke 2 68,176 5 - -

Principal Ways of SupportingDartmouth Throughthe Bequest Program

Bequest

• outright bequest - a gift at the time of death from the donor's estate; either a specific dollar amount or a percentage; can include real estate.

• contingent bequest - similar to an outright bequest but realized only if the primary beneficiary(ies) are no longer living.

• residuary bequest - a gift of the remaining value of the donor's estate after the distribution of specific bequests and payment of taxes, debts and administrative costs.

Testamentary Trust

• a trust established at the time of the donor's death, usually with lifetime income payments to named beneficiaries, after which time the trust principal, either whole or in part, is received by the College; it may also be a permanent trust (in perpetuity) with annual income payments to the College.

Life Income Trust

• unitrust - separately-invested trust established by a lifetime gift with lifetime income payments to the donor and/or another beneficiary which will vary with the changing value of the trust assets each year; gift can be cash, securities and/or real estate.

• annuity trust - similar to a unitrust but with a fixed dollar amount of income payments.

• pooled income fund - trusts established by lifetime gifts which are pooled for investment purposes (similar to a mutual fund) with each beneficiary receiving his/her pro rata share of overall income earned by the pool; Dartmouth has two pooled funds, each with a different investment and payout objective.

Life Insurance

• Dartmouth as beneficiary - no income tax savings to donor but proceeds received by College escape estate tax.

• Dartmouth as owner and beneficiary - if ownership of policy is assigned to College, its cash value and any future premiums paid by donor are income tax deductible; proceeds received by College escape estate tax.

Association ofClass Bequest Chairmen

Executive Committee: 1975-76

President Charles S. Bishop '26 Vice President Paul L. Guibord '36 Executive Secretary Robert L. Kaiser '39 Associate Secretary Frank A. Logan '52 Committee Member Arthur J. Leonard '34 Committee Member Francis T. Fenn, Jr. '37 Ex Officio Member Arthur E. Allen, Jr. '32

Bequest Program Receipts, 1951-75

by five-year periods ending in the year shown

Ten Largest Bequests Received:1951-1975

1. Henry White Cannon (1899 Honorary) $2,720,561

2. Leon E. Williams '15 2,599,973

3. Martha E. Leverone (1906) 2,137,659

4. Nathaniel Leverone 'O6 1,995,220

5. John H. Watson, Jr. 'O4 1,850,205

6. Channing Cox '01 1,499 114

7. Albert L. Emerson '23 1,077,167

8. Lavinia Rose Wilson (1895) 997 913

9. Katherine E. Mason (1915) 991,234

10. Helen P. Geisel (1925) 909,032

(During this twenty-five-year period, 258 bequests of $5,000 and under were received.)

Leading Classesby ProgramCategories

Dollar Amount of LifeIncome Trusts 1915 $1,402,346 1925 857,838 1921 811,776 1914 805,563 1924 759,691

Dollar Amount of Realized Bequests 1906 $4,682,560 1915 3,886,244 1925 1,966,927 1923 1,527,705 1913 964,920

Number of Bequest Expectancies 1925 85 1924 70 1921 56 1926 54 1923 51 1929 51

Number of Life Income Trusts 1921 35 1923 30 1925 26 1933 18 1924 16

Number of Realized Bequests 1910 29 1911 23 1907 21 1915 19 1925 19

DARTMOUTHBequest &Estate PlanningPROGRAM

301 Crosby HallTel. (603) 646-2260HanoverNew Hampshire 03755

Alumni CouncilCommittee onBequests andEstate Planning:1975-76

Arthur E. Allen, Jr. '32, Chairman Richard H. Mandel '26 Myles J. Lane '28 Llewellyn L. Callaway '30 Charles V. Raymond '30 William H. Kendall '32 Edward N. McMillan, Jr. '41 Richard H. Proctor '43 John W. Berry '44 Frederick M. Rothenberg '64 Robert L. Kaiser '39, Secretary Frank A. Logan '52, Associate Secretary

Charles Bishop '26

Art Allen '32

Bob Kaiser '39 and Frank Logan '52 are respectively the executive secretary and associate secretary of the Dartmouth Bequest and Estate Planning Program.