Beloit alumnus and Princeton, Ill., resident O.V. Shaffer '50 has already left his mark on campus and the greater Beloit community with many of his creations adorning public spaces and private gardens. With his two gift annuities through Beloit College, Shaffer, who goes by the name "Verne," has made plans to establish the O.V. Shaffer Endowed Exhibitions Fund to provide more opportunities for student-directed installations and exhibitions at the Wright Art Museum and the Logan Museum of Anthropology.
To understand how Shaffer will establish the endowed fund, it helps to think of a gift annuity as having two stages in its life. During the first stage, Shaffer's gifts establishing the two annuities are invested to support annual payments to Shaffer. At the end of his life, the funds remaining from Shaffer's annuities will constitute the second life stage of the gift annuity, and they are called the "residuum."
The final value of a residuum depends on two factors: investment performance of the college's annuity pool and how long the annuitant lives. Over the past decade, Beloit College's annuity investments have outperformed the stock and bond markets so that several recently matured annuities have had residual values greater than their original gift value. But as a general rule, the expectation is that an annuity's residual value will be at least 50 percent of the face value of the original gift.
In Shaffer's two gift annuity agreements, he has designated that the residua be used to establish the Shaffer Endowed Exhibitions Fund. If he establishes additional gift annuities, Shaffer plans to direct their residua to the Fund as well. Finally, in his will, he is leaving a bequest gift to further enhance the Shaffer Endowed Exhibitions Fund.
"I'm just really interested in museum studies and how the arts are explained," Shaffer says. "I think places like Beloit College are ideal for studying art. Through this fund and with other like-minded people, I want to help make the program stronger."