U.Va. gets $52.6 million
Bequest from Law alum to generate $2.5 million
a year for Medical Center
By Bill Sublette
University has received the second largest gift in its history,
T. Casteen III announced April 5. The $52.6 million bequest from
Ward Buchanan, a 1914 graduate of the Law
School, will create an unrestricted endowment fund for the
be known as the Buchanan Fund, the endowment will be invested
to generate income for the Universitys hospitals and clinics.
Initially it will produce approximately $2.5 million a year for
the Medical Center, although that amount is expected to increase
as the endowments assets grow.
gift is the result of estate plans made more than 60 years ago
by Buchanan, a retired Procter & Gamble executive who died
in 1942. Buchanan stipulated in his will that a trust be created
to provide income for his close and extended family and, after
the death of his last surviving heir, to establish the Ward Buchanan
Fund for hospital purposes at the University. After
the recent death of Helen Hackwell, one of Buchanans cousins
and the last income beneficiary of the trust, the University received
the trusts assets.
is a remarkable gift, Casteen said. More than a half-century
ago, an alumnus whom we did not have the privilege of knowing
provided for his heirs in his estate plans. At the same time,
and with exceptional foresight, he made the University the ultimate
recipient of his legacy. From this thoughtful act, we now have
a substantial and perpetual source of support for the advanced
level of care that only an academic medical center can provide.
We are grateful for Ward Buchanans generosity and for his
commitment to the future of health care at the University.
Edward Howell, vice president and chief executive officer of the
Medical Center, noted that the gift comes at an opportune time.
Income from the Buchanan Fund, he said, will help the Medical
Center advance new clinical and educational programs in ways not
possible through traditional means of support.
are challenging times for academic medical centers, which hold
the greatest promise for introducing new cures and treatments,
Howell said. Ward Buchanans gift will help our hospitals
and clinics provide leadership in overcoming the ravages of disease,
and it will help us work in partnership with the School of Medicine
and the School of Nursing to promote the training of superb health
initially with Procter & Gamble stock, the trust grew as a
result of investment strategies adopted by Buchanans heirs
and the Cincinnati bank that managed the trust, PNC Bank, Ohio.
the beneficiaries chose to invest aggressively in the equities
markets, focusing more on growth than fixed income, the trust
grew exponentially from the original stock gift, which was later
diversified into other stocks by the trustee bank, said
Alice Handy, president of the University of Virginia Investment
Management Co., which manages the Universitys endowment.
This proved to be a winning strategy for both the income
beneficiaries and the University of Virginia.
in Wyoming, Ohio, in 1891, Buchanan was the son of one of Procter
& Gambles earliest executives. After receiving his law
degree from U.Va., Buchanan also joined Procter & Gamble and
remained with the company off and on for the next 20 years.
1940, he retired to Lewisburg, W.Va., where he died in 1942 at
age 50. His wife, Gladys Carlyle Buchanan, died in 1953. They
had no children.
Ward Buchanan trust illustrates, in the clearest possible way,
the power of planned giving, said Robert D. Sweeney, senior
vice president for development and public affairs. It shows
how a thoughtful donor, looking to the future, can make provisions
for family and loved ones and at the same time make an extraordinary
gift to the University.