Librarian Provides for Retirement and Sacramento State


Herb Drummond

Ask Legacy Circle member and former librarian Herb Drummond about electronic readers such as iPads and Kindles and he'll sternly tell you, "They are not books." But don't take him too seriously. His scowl turns into a sheepish grin as he admits he's considering buying one...eventually. "Every week, I sort of get an urge to delve into this, but I'm always afraid I'll break it or bring down the Internet by pushing the wrong button," he says laughing. "I'm old school."

That he prefers the look and feel of books is understandable. He has been associated with Sacramento State's Library for almost 60 years—38 as a librarian and 20 as a member of the Friends of the Library. In fact, Drummond has been with the Library almost since the school's move to its current location in 1953. "I came here in 1954 and this was my first job as a librarian," he says.

Drummond, who grew up in Washington, says he only planned to stay for two years but he stayed because he enjoyed being a part of a nascent college ready to grow and because Sacramento State gave him the opportunity to expand his career. "This is one of the reasons why I have such an affinity for the school."

His affection for Sacramento State continued after his retirement in 1992 and became indelible when he established a charitable remainder trust to support the Library, providing funds for the purchase of library materials. "I set it up because of my connection with the Library. It was my life's work," he says.

Establishing and funding a charitable remainder trust provides an immediate income tax deduction to a donor and an income to the donor and/or his or her beneficiary for the rest of their lives. Upon the beneficiary's death, the remaining assets in the trust transfer to a charity of the beneficiary's choosing—in this case, the University Library at Sacramento State. The gift that initially funds the trust can be cash and/or appreciated assets like stock or real estate.

Years ago, Drummond had acquired a piece of real estate, which he planned to use to supplement his retirement income. By donating that property to a charitable remainder trust, he was able to sell the property tax-free. The proceeds from the sale were reinvested with both Drummond (now as income beneficiary) and Sacramento State (later as remainder beneficiary) reaping the rewards.

"When I was introduced to the charitable remainder trust, I saw it as a great opportunity," Drummond says. "It saved a good bit of the capital gains, which I would generally have lost in taxes. It also provides me with a reasonable return on the money the property sale generated. It was a good move for me and an investment in the University."

The program has worked out so well that Drummond continues to add to it. "The return that I receive is much more than I could get from a CD or other places where I could have invested it," he says. "It's a program I would recommend, because you are making a contribution to something very important, and it provides a return in retirement that for me has been quite reasonable."

With any luck, his next investment may be the electronic reader, one that will be "the first step to connect me to the Internet and email," he says adding,

"In my early days, I thought Dick Tracy with his two-way wrist watch was magical, wonderful and advanced."

For more information, please contact Lora L. Hollingsworth at (916) 278-6115 or

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A charitable bequest is one or two sentences in your will or living trust that leave to Sacramento State a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Sacramento State, a nonprofit corporation currently located at 6000 J Street, Sacramento, CA 95819-6030, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the University Foundation or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the University Foundation as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the University Foundation as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the University Foundation where you agree to make a gift to the University Foundation and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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