Creighton University

Desire to Simplify Lives and Benefit Community Motivates Gift

When it came to estate planning, longtime Omaha residents Joan E. (Harmon) McCarthy, ARTS’59, and Edward J. McCarthy, BSC’56, knew that they wanted to give back to their community in some way. As former students of Creighton and admirers of what the University has done for the community, the couple naturally chose to donate to their alma mater.

As owners of several rental properties, the McCarthys decided to donate appreciated real estate to fund two charitable gift annuities that will ultimately establish the Edward and Joan McCarthy Endowed Scholarship Fund at Creighton. In return for their contribution, the McCarthys will receive lifetime quarterly payments, an immediate charitable contribution deduction for income tax purposes, deferral of tax on the capital gains on the appreciated value, and avoidance of the “depreciation recapture,” which would have occurred upon sale of the property. Upon their deaths, the balance of the annuities will endow the Edward and Joan McCarthy Endowed Scholarship Fund, which will provide financial assistance for students in the College of Business Administration (CoBA).

Ed, who is originally from Sioux City, Iowa, and his wife, Joan, first met as students in the School of Commerce (now CoBA). Joan later transferred to the education program, while Ed went on to graduate from the School of Commerce in 1956. Both recall fondly their days at Creighton, not only for the academic foundation it provided, but also for the social environment it offered them as young students. With children and grandchildren living out of state, the couple decided that it was time to sell some of their rental properties so that they would have more time for traveling and visiting family.

“I really felt that it was time to simplify our lives,” Joan explained. “Rental properties have been a good investment for us over the years, but they are certainly a lot of work and stress to manage. You also can’t be certain of how much income your rental properties will generate each month. My mother had an annuity that benefited her later in life, and I thought it would be a good option for us, as well. With the charitable gift annuities, the stress of managing properties is eliminated and I know that a fixed amount will be deposited directly into our bank account four times a year.”

As a lawyer and CPA, Ed was well aware of the tax and financial implications of selling their rental properties. Together, he and Joan decided that gifting their real estate assets to Creighton was an attractive alternative.

“If you’re a person in good health and have other assets, then a charitable gift annuity is a nice addition to that,” said Ed. “It will provide us with tax benefits and a steady stream of income for the remainder of our lives. And beyond that, the endowed scholarship will help many deserving students to receive a valuable Creighton education.”

“We are certainly grateful to the McCarthys for their generous gift,” said Anthony Hendrickson, Ph.D., dean of the College of Business Administration. “Their story is classic Creighton — hardworking people who come to Creighton University, acquire a world-class education, marry, raise a fine family, succeed in their professions and become agents for positive change in their community. In doing all this, they also remembered the institution that helped them shape their goals and values. Their values move them to share their good fortune with others, so that succeeding generations of Creighton students benefit from their hard work and achievements.”

Endowed scholarship funds are a critical priority of The Campaign for Creighton, which seeks $145 million in endowment support. For further information regarding charitable gift annuities or gifts of appreciated property, please contact Creighton’s Office of Estate and Trust Services at (402) 280-1143 or (800) 334-8794.

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Creighton University
Office of Estate and Trust Services
2500 California Plaza
Omaha, NE 68178
(402) 280-1143
(800) 334-8794
giftplanning@creighton.edu