Tom Usher is starting a new phase of life.  The 63-year-old Oakmont resident retired in October of 2004 as CEO of U.S. Steel but remained as Chairman until the end of January.  He remains the non-executive Chairman of Marathon Oil.

At the end of 2003, he set up a fund with the Pittsburgh Foundation primarily because of specific tax advantages that the mechanism allows.  He already had established a private foundation but was only allowed to contribute up to 30 percent of his adjusted gross income with that vehicle.  With a so-called “public foundation” set up through the Pittsburgh Foundation, he could contribute up to 50 percent of the adjusted gross income.

“2004 was a very good year for me,” Usher said. “So I was able to put the 30 percent into the private foundation and the next 20 percent into the Pittsburgh Foundation fund.” He did the same in 2005, and this year will be the first year that he makes disbursements from the Pittsburgh Foundation fund.

“I basically started with a very middle class life,” Usher said. “I’ve got everything I want. If you gave me another $100 million, I wouldn’t live differently. My kids are well taken care of, but I want them to work.  I don’t want them to be idle rich.  I think it’s good for people to work. It’s not good to retire at 25 or 40. And I intend to get them involved in the foundations to carry it on. 

“My intention, long-term, is to give away most of what I’ve got.” He and his wife Sandy have set up a screening mechanism with three criteria for possible grants.  The organizations should be oriented towards Christianity, youth and western Pennsylvania. “Having said that,” Usher added, “you don’t necessarily have to hit all three.”

He moved to Pittsburgh in the ninth grade, and, as he said, “Pittsburgh is my home.” The Pittsburgh Foundation fund will be dedicated to activities around this region.  “The Pittsburgh Foundation is structured so that it fits my needs well.”
The Ushers plan to give away $5 million to $6 million a year, with the camp probably taking about 20 percent of the total.  With the rest, he said, “Time will tell. We’ll just have to see how it plays out.”