At Dakota State University, our legacy champions are helping shape the future—one generation at a time.
Through planned giving, alumni and friends can make a lasting impact by supporting scholarships, advancing cutting-edge technology, and fueling innovative programs that prepare the next generation of digital leaders. Explore these powerful case studies – and discover how your legacy can help define DSU’s future in meaningful and enduring ways.
Trojan Family Supports Champion Scholarships Annually
Mr. and Mrs. Trojan, both 48 and 46 years old, are proud DSU alumni who took over the family farming business, focusing on corn and soybeans. With two children in high school, they are beginning their college tour journey. Mrs. Trojan serves on the DSU Alumni Association and has been the branch manager of a local bank with 20 years of experience, helping navigate market downturns and supplementing the family’s income.
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Over the years, the Trojans have been investing in securities, particularly the S&P 500 SPDR Fund. Recently, their favorite DSU fundraiser, Tom, introduced them to an exciting opportunity to support the current Champion Scholarship Fund, which helps high-performing students from South Dakota.
While passionate about the cause, the Trojans initially hesitated, as their disposable income was committed to their children’s college expenses. Tom then suggested using appreciated securities or a portion of their corn or soybean commodities for their donation. After consulting with their accountant, they realized the benefits of this approach. The Trojans decided to contribute $25,000 annually—funding five $5,000 Champion Scholarships for five years—without affecting their disposable income. By donating appreciated securities and commodities, they bypassed capital gains taxes and received immediate charitable income tax deductions.
This strategy allowed the Trojans to make a significant impact while securing their family’s future and supporting DSU students.
We recommend consulting with your professional advisor(s) to explore these options.
Mr. Trojan Passes Away, and Mrs. Trojan Learns Their Ag Estate is Worth $25 Million
For the past 50 years, Mr. and Mrs. Trojan, longtime friends of Dakota State University since the GBC days, successfully navigated the agricultural market with their Corn and Soybean farming operation. Tragically, Mr. Trojan passed away unexpectedly, leaving Mrs. Trojan to learn from their accountant and attorney that their estate had grown to $25 million. Their 2,000-acre property generates $250,000 annually from cash rent plus the production income from Corn and Soybeans, and Mr. Trojan’s retirement fund exceeded $15 million. In addition, their investment account, equally split between the S&P 500 and the Dow Jones, has appreciated $5 million from early investments.
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The late Mr. Trojan & Mrs. Trojan, who have two adult children, four grandchildren, and one great-grandchild, had long planned to discuss their estate plan with their attorney, but this was never realized. With her family disinterested in continuing the farming business, she turned to her trusted advisors for guidance.
Her accountant and attorney reminded her of her longstanding passion for supporting the Catholic Church, DSU, and the local medical center. With the help of her favorite DSU fundraiser, Jill, Mrs. Trojan realized an opportunity to plan for a fulfilling retirement while continuing to support her favorite causes and providing for her family.
The advisors and DSU fundraiser, Jill, recommended a multi-faceted strategy:
- Annual Gifts: Using appreciated assets to make annual gifts to the three charities.
- Charitable Gift Annuity (CGA): Providing guaranteed fixed income for Mrs. Trojan, with a significant portion being tax-free.
- Trust Strategy: Upon her passing, marketable assets (excluding the retirement account) will go into a trust with a 20-year term, paying 5% annually to her surviving family. The remainder will be donated to her three beloved charities— the Church, DSU, and the Medical Center.
- Retirement Account Distribution: The retirement account will be distributed equally to the three charities.
This comprehensive plan will result in a $25M-plus impact on Lake County, enhancing the lives of her family, supporting her community, and ensuring the Trojan Family legacy for years to come. Mrs. Trojan is thrilled with the plan and looks forward to deepening her engagement with Lake County, spending quality time with family, and enjoying DSU’s travel program.
We recommend consulting with your professional advisor(s) to explore these options.
The Impact of a Charitable Gift Annuity: Enhancing Income & Making a Gift
Mr. and Mrs. Trojan, both 84 and 82 years old from Dell Rapids, SD, have been dedicated supporters of DSU for years, contributing annually and staying engaged through receiving the Alumni Magazine. Mr. Trojan had a career as a branch manager at a local bank, while Mrs. Trojan spent 30 years teaching 2nd grade. They have two adult children, five grandchildren, and one great-grandchild, all living nearby.
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As their CDs matured, they were introduced by their DSU fundraiser, Jill, to the idea of establishing a Legacy Champion Scholarship Endowment. Given their appreciation for conservative fixed income, Jill recommended a Charitable Gift Annuity (CGA), which would provide them with guaranteed fixed monthly income, a strong portion tax-free, along with a charitable income tax deduction, all while securing a permanent family legacy.
After consulting their financial advisor, Mr. and Mrs. Trojan moved forward with a $50,000 CGA, receiving a 7.5% payout rate, which equates to $312.50 per month. Of that, 69.6% of each payment is tax-free, and they received an immediate charitable income tax deduction of $21,540.
Delighted with the results, they reached out to Jill after receiving their first check, expressing interest in setting up another CGA when their next CDs mature.
This strategy not only enhanced their income, but also created a meaningful legacy, benefiting both their family and DSU.
We recommend consulting with your professional advisor(s) to explore similar options.
The Impact of a Charitable Remainder Unitrust: Simplifying Property Management and Supporting DSU
Mr. & Mrs. Trojan, both 68 and 64 years old from Sioux Falls, SD, are dedicated DSU alumni who have supported the university with annual gifts of $100 and stay connected through the Alumni Magazine. Mr. Trojan had a fulfilling career as a high school football coach and teacher, while Mrs. Trojan dedicated over 25 years to teaching 2nd grade. The couple has one adult child and two grandchildren, all living nearby.
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During a recent conversation with their DSU fundraiser, Tom, Mr. and Mrs. Trojan shared their desire to travel more, but felt restricted by the management of their rental properties, which provide steady income they enjoy. After learning that the properties were fully owned, Tom suggested a Charitable Remainder Flip Trust (CRFT), a strategy that would allow them to:
- Receive an immediate charitable income tax deduction
- Bypass capital gains taxes on the appreciated properties
- Receive quarterly income to fund their travel after the properties are sold
- Leave a lasting legacy to DSU upon the trust’s termination.
The rental properties, originally purchased for $150,000 in 1987, are now worth $850,000.
Key Benefits of the Charitable Remainder Flip Trust (CRFT):
- Capital Gains Tax Savings: Bypass up to $700,000 in capital gains taxes, saving potentially $131,600.
- Charitable Income Tax Deduction: A charitable deduction of $282,413, potentially resulting in tax savings of $67,779.
- Quarterly Income: Potential for $10,625 per quarter, with projected lifetime income of $1,953,773.
- Projected Remainder for DSU: Estimated $1,952,198 for DSU scholarships and faculty after 30 years.
This plan empowers Mr. & Mrs. Trojan to travel freely, while providing them with tax benefits, ongoing income, and the satisfaction of supporting DSU’s future.
We recommend consulting with your professional advisor(s) to explore these options.
