A Note From James Gjerset, Past National Planned Giving Chair

There are basically two principle types of charitable giving, current gifts and planned gifts. Current gifts benefit one's chosen charity in the near term, either immediately or over the period of time over which a pledged gift is actually given. Planned gifts, on the other hand, benefit the organization or charity at some future point in time. Both types of giving are very important to the ongoing growth and viability of the organization, in our case the American Association of Orthodontists Foundation. The basic thrust of the AAOF is to encourage philanthropy within the orthodontic community in support of the research and education goals of the Foundation.

In the early stages of the AAOF's campaign, A CASE FOR THE FUTURE, emphasis was placed on current gifts, usually cash or appreciated securities pledged over a period of from three to ten years. It was necessary to build the endowment to a level where the Foundation could begin the process of seeking out and funding worthy requests and projects. At this time approximately 3,700 donors have pledged a total of $23 million, $15.2 million of which has been redeemed, and the current market value of the Foundation's endowment fund stands at approximately $13.6 million. Since 1994 the Foundation has made grants and awards in excess of $4.2 million. For the past several years, market forces have created a difficult environment for all investors, including philanthropic organizations such as the AAOF. As many other potential sources of research and educational funding have diminished or completely dried up, the number of requests to the AAOF for funding has continued to grow with each passing year. Our Foundation has not been able to fund as many of these requests as was desired. However, the present economic rebound is permitting a good deal more optimism, and hopefully the Foundation will soon find it possible to respond affirmatively to a greater number of these very deserving requests.

While the need is still very strong for current gifts, the success of the campaign thus far has given the Foundation the ability to diversify its efforts and to place more emphasis on planned gifts. It is interesting to note that as people become increasingly comfortable with the concept of philanthropy, they tend to grow in their ability and their willingness to take part at increasingly higher levels of giving. For example, many AAOF donors began at the level, let's say, of $2,500 pledged over a period of three years. As they paid off that pledge, saw that it did not adversely affect their lifestyle, and experienced the joy that comes from sharing in the support of a truly worthy endeavor that benefits not only oneself but also our profession, our specialty and the public whom we serve, they have happily increased their personal commitment to the Foundation. Many have become Regents, an increasing number have become Fellows, and a great many have become members of the Keystone Society. Keystone Society members are those who have made a commitment to include the AAOF in their comprehensive, long term financial and estate planning.

There are a number of specific ways in which a person can include philanthropy in his or her long range financial and estate planning, thereby benefiting the AAOF while still preserving the security of his or her family, and at the same time enjoying certain perfectly legal and legitimate tax benefits. A person can develop a plan that fits their needs at the present time and then can amend it as time passes and their personal circumstances change. It is not the intent or the role of the AAOF to give advice regarding specific types of planned giving vehicles. One must consult with one's own legal and accounting professional for this kind of expert advice. The plan that you develop must be right for you. And the plan that's right for one person may be completely inappropriate for another person. The Foundation's thrust is to encourage our AAO members to include the AAOF in their long range financial and estate planning process, and to seek out the best qualified advisors to help them to identify the most appropriate ways for them to accomplish their long term goals.

In the case of my wife LuAnne and me, where everything we do or commit to doing is a joint decision, I would like to share with you just a bit of how we have made our commitment to the AAOF. I became a Regent in 1992, following the lead of my good friend Gene Blair, a person for whom I have always had enormous respect. Like most, we paid off the Regent pledge over a period of several years. A year or so ago, Gene Blair called and asked me to become a member of the Keystone Society, which fit well into LuAnne's and my long range plans, and which we happily agreed to do. Then, in the Fall of 2003 I sold my orthodontic practice and retired from active practice. We had already been considering making a new pledge to the Foundation at the Fellow level, and during the 2003 Annual Session of the Midwestern Society of Orthodontists we felt that the time was right, and we made the Fellow pledge. As the details of the sale of my practice came to fruition, our accountant advised us to pay the pledge in full during the year 2003, which we did.

LuAnne and I believe that we owe a debt of gratitude to the dental profession and to the orthodontic specialty. I had the privilege of practicing for more than 38 years as a member of a respected profession and a marvelous specialty within that profession. LuAnne ran my practice for most of those years. We went to work together in the morning, and home together in the evening. We loved our community, our patients, their parents, my colleagues, our staff and all the wonderful people with whom we worked in our community and in the various dental and orthodontic organizations where I was privileged to be involved. I never tired of practicing orthodontics and we looked forward each day to going to the office to take care of our patients.

We are proud and happy for the privilege of lending our small measure of support to the ongoing efforts of the AAOF. We believe in the mission and the goals of the AAOF and we believe in the young people of each succeeding generation, for they are the future!

Gjerset, a Past President of the AAO, was one of the AAOF original Campaign Vice-Chairs; served as a member of the AAOF Board of Directors on two separate occasions, most recently as National Planned Giving Chair; and was selected by the AAOF BOD to receive the Eugene and Pauline Blair, American Association of Orthodontists Foundation, Distinguished Service Award, for service to the AAO Foundation dating back two decades, at the AAO Annual Session in Chicago in May 2011.