Buchanans planned gift was set in motion 60 years ago
$52.6 Million Bequest, Second Largest Gift In Schools History/
Unrestricted Endowment To Generate $2.5 Million A Year For Medical
April 5, 2002-- The University
of Virginia has received the second largest gift in its history,
University President John T. Casteen III announced today. The $52.6
million bequest from Ward Buchanan, a 1914 graduate of the Universitys
law school, will create an unrestricted endowment fund for the University
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
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
University Medical Center, noted that the gift comes at an opportune
time for the Medical Center. 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
care professionals. We cannot express too strongly how grateful
we are to Ward Buchanan and the trustees and family members who
stewarded this gift for the past 60 years."
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 income
beneficiaries allowed the trust to be invested primarily in stocks
rather than bonds or other fixed-income securities. As a result,
the principal of the trust appreciated substantially over time.
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
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.
the company in 1916 to serve in the Army as a field artillery officer
and later as an instructor of heavy artillery, Buchanan returned
to P&G in 1921 to manage the companys Detroit office.
Six years later he was named manager of its sales division. He eventually
moved to England to become sales manager of the Thomas Headley Co.,
a P&G subsidiary. In 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, the Universitys
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."
bequest is also another example of an alumnus from outside the medical
area recognizing the need to support the Universitys health
care mission, Sweeney continued. "Like the recent gift from
Darden School alumnus William H. Goodwin Jr. to accelerate clinical
trials of promising cancer vaccines and the longtime support of
College and Law School graduate David A. Harrison III for medical
education and research, Ward Buchanans gift helps to keep
the University at the forefront of medical care."
Carol Wood, (434) 924-6189