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Planned Giving
Charitable Gift Annuity Benefits
One of the simplest and most popular charitable gifts is a charitable gift
annuity. This gift option is a combination of an investment and a gift and
provides life income to the donor (and another recipient if desired - the
annuitants). The designated charity accepts the gift and in return obligates
itself to pay a fixed and specified dollar amount to the annuitant(s) for
life.
A charitable gift annuity immediately becomes the property 
of
the charity and is an irrevocable gift. The charity is legally bound to fulfill
its commitment to pay the annuitant(s) for life. Some states have regulations
regarding the issuance of charitable gift annuities. Please contact
us regarding any questions.
There are two types of charitable gift annuities - immediate and deferred. An immediate annuity begins paying income immediately after the annuity agreement is signed. A deferred charitable gift annuity begins the income payments at a specified date in the future. A deferred charitable gift annuity will generally provide a larger charitable deduction than the immediate annuity and, as the funds will have an opportunity to grow without income distributions for a period of years, the income rate will generally be larger.
Gift Annuity Benefits
As
a portion of the annuity is a gift, you'll receive an income tax deduction
for the gift if you itemize.
- A portion of the annual annuity income is exempt from Federal taxes.
- You may save tax on the capital gain (profit from an investment).
- You avoid estate taxes, probate, and costs on the amount involved.
- The charity will have the use of the funds after the beneficiary's lifetime.
- The payments are fixed and will not fluctuate with interest
rates.
- Your annuity is as safe as the organization you invest with, for the total assets of the organization stand behind their agreement to make payments to you.
- Generally the funds used to set up a charitable gift annuity may be structured as an unrestricted gift or to fund a particular item or program that is important to you (with the consent of the charity).
Return to the Charitable Gift Annuities story or to the glossary.
To discuss a possible planned
gift to support the University, contact
David A. Bower, CFRE
Director of University Development
President, USI Foundation
Phone: 812/465-7039
Fax: 812/465-1229
E-mail: bower@usi.edu
Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for the USI Foundation by Future Focus. Please report any problems to webmaster. Revised: March 3, 2008 11:06.
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