Present Value Question for My Intro Students

I think the folks at our university's publication service need to study the concept of present values more:

[Oct. 15th] CIBC today announced a $1-million gift to create the CIBC Centre in Human Capital and Productivity at Western. The donation, pledged over 10 years at $100,000 a year.

Argh. Is this a losing battle? In what sense is that gift worth $1 million? What is the present value of a ten-year annuity of $100,000 at current interest rates?
To make matters worse, I have to write about it in an alumni newsletter for our department. Ugh.