Aggies paying it forward
Karl Gerdes M.S. ’73 Ph.D. ’84 and Pamela Rohrich M.A. ’74 D.V.M. ’83 have always been grateful for the education they received at UC Davis – and so they give back by helping others access the same top-tier education that benefited them. After they graduated and paid off their student loans, they decided that since they were used to paying a monthly payment towards student loans, they would redirect those dollars to UC Davis for their annual giving. This would allow them to give back during their lifetimes and see the impact of their gifts on the students.
They knew there must be more options to help the students even more. As the longtime scholarship donors pondered how they could make an even bigger difference in the lives of students, they were introduced to a way of giving they hadn’t considered: a charitable remainder unitrust.
A charitable remainder unitrust provides the donor or other named individuals income each year for life or a period not exceeding 20 years from assets given to the trust created.
Gerdes had a large block of appreciated stock as a benefit from a former employer. He knew if he sold the stock outright, he would be taxed heavily on the sale of the stock.
A charitable remainder unitrust is a great way to give back while also receiving the benefit of additional income.
However, if he donated it into a charitable remainder unitrust, they would avoid the capital gains taxes, they would be paid dividends based on the value of the unitrust annually, and UC Davis would benefit from the remainder after their lifetimes.
“It was the epitome of a win-win situation,” Gerdes said. “Eventually, when our estate gift comes to fruition, the remainder will be added in our bequest to the university. In the meantime, we still get to see firsthand [our annual giving] dollars go toward helping students.”
A charitable remainder unitrust is a great way to give back while also receiving the benefit of additional income.
An appreciation for education
The couple noted how privileged they were to attend UC Davis. They credited the institution with helping launch their careers in engineering and veterinary medicine, respectively.
After the couple had completed paying off their own student loans, they considered ways in which they could help others attain a top-tier education. They felt it was time to pay it forward, so they used the remaining money set aside for student loan payments and endowed a scholarship.
“We figured out by redirecting our student loans into philanthropic giving, after five years it would materialize into a full scholarship for student,” said Gerdes. “That was our introduction to philanthropy at UC Davis.”
The couple supports their respective areas of study –– engineering and veterinary medicine –– but also give to the Athletics department, as well as many other units on campus.
“We have been rabid Aggie sports fans since the 1970s,” Rohrich said. “We have been going to Aggie football games for decades. And now that we have retired and live in Davis, we have had the opportunity to go to many other sporting events on campus, too.”
The most inspirational part for Gerdes and Rohrich is when they have the opportunity to meet their scholarship recipients at scholarship dinners.
“It helps us feel connected to UC Davis and it is really a humbling experience to meet these amazing students who have received the scholarship,” Rohrich said. “It’s exciting to see that our legacy gift is enhancing the lives of students.”
Make a gift that gives back
Like the Karl and Pam, you, too, can make a difference at UC Davis with a gift that pays you income. Contact the Office of Planned Giving at (530) 754-2286 or plannedgiving@ucdavis.edu to learn more.
