Keith and Toshi Baum Give Back in a Tax-Smart Way

Keith Baum came to Interlochen Arts Academy in 1974 to study the saxophone, but he always knew he would have a career in business. Currently the managing director of the Foundations and Endowments group at Abbot Downing, he has spent 35 years in the investment industry, both in the United States and abroad. This year, Keith used his financial savvy to, with his wife, Toshi, create a Deferred Charitable Gift Annuity to benefit Interlochen.

Beyond just the amazing arts education and top-notch academic experience, Interlochen opened the world to Keith by introducing him to students from all over. He credits his Interlochen education with teaching him to be disciplined and accountable. "I was a two-year Academy student—I graduated in 1976—and I have no doubt that those two years have had a bigger role in shaping my life than any other two-year period."

It might seem surprising that a financial expert would make a major gift to Interlochen during an unpredictable year, but the very unpredictability of 2020 convinced Keith and Toshi that a deferred charitable gift annuity was a perfect way to both benefit Interlochen and give them a stable income stream. To create the deferred CGA, Keith and Toshi made a gift to Interlochen, which, in turn, agreed to invest the funds and begin paying them a set amount of income annually for their lifetimes, starting in 2023. In 2020, Keith and Toshi will also receive a substantial income tax deduction for their gift to establish the CGA.

The ability to defer their payments to 2023 was especially attractive to Keith because it would create a new income stream just as he and Toshi plan to retire, and that it would give Interlochen's investment managers three years to grow the amount in the fund before paying out the annual annuity. By deferring payments, Interlochen also was able to offer Keith and Toshi a higher annuity rate!

Interlochen offers CGAs at rates set by the American Council on Gift Annuities, which are often higher than rates from a simple savings account or some types of bonds. If you are interested in learning how a CGA could help Interlochen and provide you with income and tax savings, please contact Kathleen Kasdorf, Director of Planned Giving, at [email protected] or (231) 276-7637.