ideas On Financial, Estate And gift Planning For - Cleveland Clinic

Partners in Philanthropy celebration Honors cleveland clinic supporters
disease Prevention and Healthful Living Were themes of the day
Cleveland Clinic honored more than 500 friends at its
annual Partners in Philanthropy celebration, which took
place June 28 and included presentations and exhibits
focusing on health, nutrition and disease prevention.
For her warm-hearted generosity in support of stroke
victims over the years, Rose Mary Kubik, a PYRAMID
Legacy Society Member, was awarded the 2006
George W. Crile, Sr. Award.
Named after one of Cleveland Clinic’s four founders, the
annual award recognizes a PYRAMID Legacy Society member’s
longstanding service, extraordinary commitment and
outstanding contribution of time, talent and resources to
furthering the mission of Cleveland Clinic.
In 2003, Ms. Kubik established a fellowship to further
stroke research in honor of two of her sisters who suffered
strokes. She also has established gift annuities for nine of
her nieces and nephews. The gift annuities benefit stroke
research, while guaranteeing annual payments for life for
these family members once they near retirement. For more
on charitable gift annuities, see related story on page 4.
ideas on financial, estate and gift planning for Legacy society members
Pyramid
summer 2006
richard rudick, m.d., honored Pyramid Legacy society member
rose mary kubik for her dedication to stroke victims and their
families. ms. kubik was awarded the crile award at this year’s
luncheon in recognition of her heartfelt support.
Richard A. Rudick, M.D., Chairman of the Clinical Research
Division and Director of the Mellen Center for Multiple
Sclerosis Treatment and Research at Cleveland Clinic, honored
Ms. Kubik at the event. “Her support has not been only financial.
Besides creating a fellowship to help stroke victims, she has
assisted our stroke team to help prevent strokes.”
inside this issue • Partners in Philanthropy celebration Honors cleveland clinic supporters • rose mary kubik receives crile award
• the spirit of giving – deferred-Payment gift annuity a Popular twist
• complimentary Booklet: Augmenting Your Retirement Security – The Deferred-Payment Gift Annuity
• dr. cosgrove: a Personal connection • meet the gift Planning team
Continued on page 2

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continued from page 1
Glickmans Foster Patient-Centered Care
At this year’s luncheon, Delos M. “Toby” Cosgrove, M.D.,
Cleveland Clinic CEO and President, offered special recognition
to Carl D. and Babs Glickman, lifelong contributors to
Cleveland Clinic who have supported construction of a new
facility that will house the Glickman Urological Institute,
Department of Nephrology and Hypertension, and other
programs and new initiatives.
Dr. Cosgrove explained how different specialists will be
grouped around a related body of knowledge, working in teams
to treat patients in this new building.
“We can now bring them physically together so they can have
those wonderful hallway conversations,” he added.
While honoring the Glickmans, Dr. Cosgrove said, “We would
like to thank you for your generosity and for stretching us to a
higher goal. We also want to thank you on behalf of all the
patients who will benefit.”
“ your degree of aging is based
not only on your genes.
the older you are, the more
in control you are, and your
own choices to a large degree
turn on and off your genes.”
– michael roizen, m.d.
Health and Nutrition Programs
Guests at the event also enjoyed special programs designed
around health and wellness, which included a lunch of superfoods
rich in antioxidants and vitamins. Guests sampled the
flavorful, healthful cuisine as Scott Uehlein, a chef from
Canyon Ranch and his “guest assistant” Joseph Hahn, M.D.,
Chief of Staff, Professional Staff Affairs at Cleveland Clinic,
demonstrated how the food is made.
In addition, Michael Roizen, M.D., Chairman of
Cleveland Clinic’s Division of Anesthesiology, Critical Care
Medicine and Comprehensive Pain Management and author
of The New York Times best sellers The RealAge Makeover
and You: The Owner’s Manual provided wellness and
prevention insight.
Health and nutrition were aspects of his talk, which focused
on retarding the aging process through good choices.
“Your degree of aging is based not only on your genes. The
older you are, the more in control you are, and your own choices
to a large degree turn on and off your genes,” Dr. Roizen said.
Throughout the day, health and wellness exhibits were
available for guests, providing information on sports medicine,
preventive medicine, nutrition and other topics to help
participants lead a healthier, happier life.
Collectively, attendees of the Partners in Philanthropy event
represented lifetime supporters, individuals who made outright
gifts, endowed chair founders and chair holders, and members
of Cleveland Clinic’s PYRAMID Legacy Society. ▲
Top: michael roizen, m.d., with the help of Bob rich, development
committee chairman of cleveland clinic Board of trustees,
demonstrated the damage that high blood pressure can do to arteries.
Center left: Pyramid Legacy society member tom kay and friend
marian Bonte. Center right: Pyramid Legacy society member
William grammer. Bottom: attendees enjoyed the day’s events,
which included educational and interactive sessions.

Top, left: canyon ranch chef
scott Uehlein (at right) and “guest
assistant” Joseph Hahn, m.d., demonstrated
how to prepare healthful,
delicious food enjoyed by attendees.
Bottom, left: Eugenia kiser and
her husband, former cleveland clinic
cEO, William kiser, m.d., with
shattuck Hartwell Jr., m.d.
Right: andrew novick, m.d.,
Urological institute chairman and
delos m. “toby” cosgrove, m.d.,
cleveland clinic cEO and President
honored carl d. glickman (seated)
and his wife Babs for their lifelong
support of cleveland clinic and its
mission to put patients first through
providing innovative new treatments
and compassionate care.
rose mary kubik receives crile award
Heartfelt dedication to stroke victims in Honor of Her sisters
Pyramid member rose mary kubik believes in helping
stroke sufferers. knowing how it feels to have two
sisters as well as close friends battle with strokes, she
was inspired to support cleveland clinic’s stroke team.
Her generosity has helped fuel research of stroke
prevention and improvements in stroke outcomes.
ms. kubik has been a friend and supporter of
cleveland clinic for 17 years. in 2003, she set up a
fellowship for stroke research in honor of her sisters.
in recognition of her ongoing and heartfelt dedication, she
was awarded the george W. crile, sr. award at this year’s
annual Partners in Philanthropy luncheon.
inspired to Donate
“i was inspired to donate because i’ve seen firsthand
how devastating strokes can be to the patient as well as
the patient’s family. i wanted to contribute something so
that other families will not suffer the same,” she said.
several years ago, she met with irene katzan, m.d., of
the cleveland clinic Health system stroke team and was
given a tour of the stroke facility.
“i was able to see the work they’re doing,”
ms. kubik said. “that is why i’ve devoted my assets to
stroke research.”
Charitable Gift Annuities
Pyramid Legacy society members who commit to
long-term charitable giving plans benefiting the hospital
often give in the form of a bequest through a will or living
trust. in ms. kubik’s case, she established charitable gift
annuities that will benefit both cleveland clinic and her
nine nieces and nephews.
Her gift annuities benefit stroke research, while guaranteeing
annual payments for life to family members once
they near retirement.
“i thought that this was a very good place to put my
money and to have my family members reap the benefits,”
she said. “the process is simple, and the people in gift
planning made it easy,” she added. ▲
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4
the spirit of giving
Philanthropy is defined as the effort or inclination to increase the
well-being of mankind, as by charitable aid or donations.
While there is a whole spectrum of gift planning options
(see chart, “comparison of gift categories” p.6), one creative way
to be philanthropic is to establish a deferred-payment gift annuity.
for rose mary kubik, recipient of the george W. crile, sr. award, philanthropy
extends to cleveland clinic and beyond, to her nieces and nephews in the form of
deferred-payment gift annuities. a deferred-payment gift annuity may also be your
gift vehicle of choice if your objective is to secure a dependable income for your
future, or the future of a loved one.
the deferred-payment gift annuity is a popular twist on the charitable gift
annuity. the term “gift annuity” describes a plan under which we provide
guaranteed annual payments to you in exchange for your gift. Our approved
payout rates are calculated with just this type of exchange in mind – to ensure
the maximum payment to you.
the deferred-payment part of such plans is what makes them so appealing to
people who want to invest resources now to compound for the future. it is the
only charitable plan that allows you to build a stream of very high income that
begins at a date of your choice and is guaranteed for life – instead of taking
payments now.
Favorable Tax Treatment
Several tax bonuses go along with the high return you receive
in this plan. When you begin taking your payments (for example,
upon retirement), a portion of every payment is treated as a taxfree
return of principal. You also receive a significant charitable
income-tax deduction right away, as soon as you transfer some
assets into the plan.
Annuity Rates Remain strong
A person at age 40 who makes a gift of $10,000 this year and
defers payments until the age of 65 receives
• a charitable income-tax deduction of $5,625 now
• and an annuity of $2,130 every year for life
beginning at the age of 65 – 21.3 percent of his or
her original investment!
Regardless of inflation or fluctuations in interest rates,
the payments from a deferred-payment gift annuity are fixed and
reliable. The amount of your payments depends on both the size
of your gift and your age, both at the time you make the gift
and when you begin receiving your return. The table illustrates
some examples.
the goal for a secure retirement is to have after-tax
income equal to the after-tax income of the last
working year. then you won’t have to lower your
standard of living, and the retirement years can be
among the best in your life.
45
Deferred Gift Annuity ($10,000) Payouts and Tax Deductions
AGe AT
Time oF GiFT
50
55
60
you receive every year
deduction this year
you receive every year
deduction this year
you receive every year
deduction this year
you receive every year
deduction this year
AGe wHeN PAymeNTs BeGiN
45 50 55 60 65
$500* $680 $910 $1,210 $1,650
$2,931* $3,303 $3,914 $4,686 $5,449
$530* $700 $940 $1,280
$2,947* $3,674 $4,422 $5,230
$550* $730 $990
$3,211* $4,084 $4,961
* amounts for immediate-payment gift annuity shown for comparison.
$570* $770
$3,581* $4,554
Both the rate of return and the tax deduction vary according
to how long you defer your payments. the choice is yours
to make with each contribution.

A New Role in Retirement Planning
The large income-tax deduction makes the deferred gift
annuity particularly attractive these days, as many people
re-examine their retirement plans and find that available tax
deductions aren’t what they used to be.
The goal for a secure retirement is to have after-tax income
equal to the after-tax income of the last working year. Then you
won’t have to lower your standard of living, and the retirement
years can be among the best in your life.
You can achieve this goal through the discipline of paying
yourself first – which means saving a certain percentage of your
income and setting it aside before spending for anything else.
The cornerstone of a secure future is a qualified retirement
plan: Because you can fund the plan with pre-tax dollars and
defer tax on earnings, your money grows at a faster rate. The
more you can put into such a plan, the better off you are. There
are, however, restrictions on participation in certain plans and
limits on how much you can contribute and deduct.
For example, the IRA deduction has been eliminated or
reduced for individuals who are covered by an employer’s retirement
plan and have adjusted gross income above a certain level
($50,000 single or $75,000 joint).
A Charitable supplement
The deferred-payment gift annuity fulfills a definite role in
light of these regulations: It provides a viable supplement to
retirement plans that have much less flexibility in their design
and in the timing of their payment distributions. It offers unique
benefits because it combines giving and receiving.
And its great advantage is that you decide when you want your
payments to begin.
Building a Fund over Time
If building your own retirement fund is a top priority for you,
think of using a series of deferred-payment gift annuities to
make annual or periodic gifts to Cleveland Clinic. With each
gift, you increase the total amount in your annuity fund and
you obtain the higher payout appropriate for the deferred-
payment plan.
example
a series of five deferred gift annuities funded with a
gift of $10,000 each year from ages 60 to 64, with
all payments to begin at the age of 65, with you in the
28 percent income-tax bracket, would pay you a total
of $3,470 every year, beginning on your 65th birthday.
you would also receive a total charitable deduction of
$21,855 for a total tax savings of $6,119.
in contrast, if you contributed the $50,000 as one gift
at the age of 65, with payments beginning immediately,
your payment would be $3,000 each year. the “installment
plan” offers you a higher total return because of
the deferred element.
Each time you create a deferred annuity, you also take an
immediate income-tax deduction. the deductible amount
depends on your age at the time of contribution and the
years deferred.
With annual contributions, you not only augment your
retirement income but also build by installments a capital
gift that could support the project or program you may
have in mind.
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6
BeNeFiTs
Fulfill
philanthropic goals
Reduce income
taxes due to
charitable deduction
Avoid capital
gain tax
Create income
payments
increase
spendable income
Retention of
asset or its use
Avoid
estate taxes
comparison of gift categories
there are a full range of giving options to suit individual needs while helping support a worthy
cause. the deferred-payment gift annuity is an option that fits into the category of life-income
gifts, which provide an income stream, significant tax savings and the satisfaction of supplying
cleveland clinic with vital long-term philanthropic resources.
outright Gifts
(cash, securities, real Estate,
tangible Personal Property)
immediate impact on
cleveland clinic’s programs
deduction for full
value of gifted asset
complete avoidance of tax
asset removed from estate
special Advantages of the Deferred-Payment Plan
• you select your starting date for payment.
• you can make contributions whenever you wish
and use any assets you wish.
life-income Gifts
(gift annuity, charitable
remainder trusts)
immediate and/or
future impact on
cleveland clinic’s programs
deduction for reduced
value of gifted asset
Partial avoidance of tax
guaranteed payments
for life or term of years
able to increase cash flow
(depending on asset)
asset removed from estate
• your gift plan can be funded with cash, stock, or other
property. (Qualified retirement plans, by contrast, can
be funded only with earned income.)
• your spendable cash won’t be dependent on investment
results and may indeed offer a higher return with this
simple, fixed-income contract than with prevailing rates.
• you can make a significant and meaningful gift
without compromising your budget for the future.
if you would like to learn more about this exciting plan, let us
hear from you. Please return the enclosed reply card. Or, if you
prefer, please call our office of institutional Development at
216.444.1245.
you should consult your attorney about the applicability to your
own situation of the legal principles contained herein. ▲
lifetime
(charitable Lead trusts)
immediate impact on
cleveland clinic’s programs
deduction for reduced
value of gifted asset
Partial avoidance of tax
able to pass assets to heirs
asset removed from estate
Deferred Gifts
(retirement Plans, Life insurance,
retained Life Estate)
future impact on
cleveland clinic’s programs
deduction for reduced
value of gifted asset
complete avoidance of tax
able to continue use of
the asset during lifetime
asset removed from estate
complimentary Booklet:
augmenting your retirement security –
the deferred-Payment gift annuity
estate Gifts
(gifts under your will or trust)
future impact on
cleveland clinic’s programs
complete avoidance of tax
able to continue use of
the asset during lifetime
complete avoidance
of tax due to deduction
Gift annuities, established with either cash, marketable securities
or, in some circumstances, real estate, allow for you or your
beneficiary(ies) to receive fixed payments that are guaranteed for
life. Choosing to defer the receipt of these payments increases
the rate of return and therefore increases your payment.
Payment begins later in life when you need it most.
If you would like more information about making a gift through
a deferred-payment gift annuity, please return the enclosed card to
receive the booklet, Augmenting Your Retirement Security –
The Deferred-Payment Gift Annuity. We would be delighted to
provide you with additional information to help supplement your
retirement income.
for more information about the alternative ways to make a gift
to cleveland clinic, please call our Gift Planning Department at
216.444.1245 or e-mail correta@ccf.org. ▲

a Personal connection
dr. cosgrove discusses Link Between innovation and Patient care
At this year’s Partners in Philanthropy Celebration
luncheon, Delos “Toby” M. Cosgrove, M.D., CEO and President
of Cleveland Clinic, discussed his personal connection to the
goals of “Today’s Innovations, Tomorrow’s Healthcare,”
a monumental five-year philanthropic campaign to raise
$1.25 billion.
“The importance of innovation occurred to me during
surgery,” he told a room of more than 500 friends, supporters
and colleagues. “I realized the instruments and technology I
was using were developed here at Cleveland Clinic. And the
reason we developed them was to make the patients’
recoveries better and lessen their loss of blood. It’s about
the care of patients.”
Dr. Cosgrove also spoke about the growing number of
patients at Cleveland Clinic and the hospital’s need to expand
in order to serve them. Support from generous partners who
believe in Cleveland Clinic’s mission will be critical in meeting
these patients’ needs.
“As 76 million baby boomers begin to reach age 65 in 2011,
they will need more care,” he said.
“Our hospital is full – 95 percent occupied. Many facilities
we use day to day were built in 1928 and have been renovated
several times. We can’t make the halls wider, the ceilings any
higher and we can’t make the rooms any larger. In order to
provide the highest-quality care, our facilities have to match
the technical expertise and the care of the doctors,” he said. ▲
“the luncheon was very informative. i enjoyed
the opportunity to see all the exhibits and to
listen to the speakers. i enjoyed the meal too,
it was very delicious. i thought dr. roizen’s
lecture was enlightening and the information
was very practical,”
mr. Wittlinger says.
“i like being a member of the Pyramid Legacy
society because i want to be part of the
philanthropy at cleveland clinic. i think this is
the right thing to do, being a part of this society.
i believe if i can give some money, maybe i can
make a difference. and maybe everyone in the
Pyramid Legacy society together can make an
even bigger difference. that’s why i’m excited
that i can participate in it,” he adds.
– william wittlinger
PYRAMID Legacy Society Member
“i loved that the day was centered on preventive medicine and wellness.”
– shirley straffon
PYRAMID Legacy Society Member
Today’s innovations, Tomorrow’s Healthcare is a comprehensive
public campaign that will further energize cleveland clinic’s
mission of providing world-class patient care, innovative research
and outstanding educational programs. the campaign will also
support cleveland clinic’s visionary campus master plan and bring
substantial healthcare and economic benefits to northeast Ohio.
for more information, visit clevelandclinic.org/giving.
Pyramid Legacy society member Lee Perna attended the Partners in
Philanthropy luncheon with his daughter Leslie Perna. “We’ve enjoyed
the lunch very much and have learned a lot,” mr. Perna says.
“cleveland clinic is the place i go. i’ve had a long relationship with
cleveland clinic going back to 1978 when dr. (John a.) Bergfeld replaced
cartilage in my left knee. He’s a sports nut like i am,” he added.
as a Pyramid Legacy society member, mr. Perna says he has given to
cleveland clinic through a charitable gift annuity. this type of gift,
established with cash, marketable securities or, in some circumstances,
real estate, allows for him or his beneficiary(ies) to receive fixed payments
that are guaranteed for life.
“it gives us both a break – it helps cleveland clinic and it helps me.
i feel it is something i can do to contribute,” mr. Perna says.
– lee Perna
PYRAMID Legacy Society Member with his daughter Leslie Perna
7

new members
Pyramid Legacy society
Anonymous
Anonymous
John J. and Sharon D. Ferchill
Albert and Norma Geller
Joseph and Suzanne Hickey
Dr. and Mrs. Fay A. LeFevre*
* deceased
Do your estate plans
include Cleveland Clinic?
EvEry gift
makEs a diffErEncE
call the Pyramid Legacy society
at 216.444.1245.
the cleveland clinic foundation
Office of development/dv3
9500 Euclid avenue, cleveland, OH 44195
www.clevelandclinic.org/giving
Pyramid
volume 14 issue 2
anne s. corrette, Editor
michelle tackla, managing Editor
PYRAMID is published by the Office of Development
for friends and supporters of Cleveland Clinic. Its purpose
is to identify opportunities that may be helpful in your
charitable giving as well as your tax and financial planning.
Please consult your professional advisors as to the applicability
of any item to your situation. The Cleveland Clinic Foundation,
founded in 1921, integrates clinical and hospital care with
research and education in a private, not-for-profit group practice.
Cleveland Clinic depends on the generosity of individuals,
families, corporations and foundations to ensure its continued
excellence in patient care, medical research and education.
The Cleveland Clinic Foundation realizes that individuals
would like to learn more about particular programs, services
or developments. However, we also fully respect the privacy
of our patients. Therefore, if you do not wish to receive any
materials containing such information, please write to the
Office of Development/DV3, 9500 Euclid Ave., Cleveland, OH 44195.
© 2006 the cleveland clinic foundation
meet the gift Planning team
(seated left to right) gwendolyn montgomery, Esq., anne corrette, Barbee thomas and amanda shaerban
(standing) nelson Wittenmyer, Jr., Esq., and richard Buffett
We enjoyed seeing many of you at the Partners in Philanthropy celebration.
We always welcome the opportunity to meet with you and help facilitate
your gifts. if any new ideas have piqued your interest, we will be happy to
follow up with you. to contact any one of us, please call 216.444.1245
or E-mail correta@ccf.org.
non-Profit Org.
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cleveland, Ohio
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