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Charitable Gift Annuities
Many alumni and friends of the University of Oregon are enjoying the benefits of making a planned gift in the form of a charitable gift annuity (CGA):
-
Increased income
- Income tax charitable deduction
- Fixed annuity payments for life
- Ability to give appreciated stocks without immediate capital gains tax
- Favorable tax treatment for annuity income
:: Payout Rates for an Individual
:: Payout Rates for Two People
What is a Charitable Gift Annuity?
A charitable gift annuity (CGA) is a contract in which the University of Oregon Foundation guarantees to pay one or more beneficiaries a fixed annual income for life in exchange for a contribution of cash or stock.
The remaining balance of the original contribution is distributed to the university at the death of the beneficiaries. The minimum contribution to fund a CGA is
$25,000.
A Hypothetical Example
Dr. Amber Green, age eighty, would like to support her alma mater but she is concerned about retaining sufficient funds for her retirement needs.
In January 2006, she decides to contribute $50,000 that was previously held in a certificate of deposit (CD) earning 3.2 percent interest ($1,600 per year), to fund a charitable gift annuity that provides a guaranteed payout rate of 8 percent.
As a result, she now enjoys $4,000 in annual income, which she receives in quarterly payments. What’s more, $2,656 of this amount is tax free for the first nine years. Plus, she receives a $25,025 income tax charitable deduction on the gift.
Bottom line: DL Green’s cash flow gets a big assist and she has the pleasure of making a sizeable gift to her favorite UO project.
Substantial and Stable Income,
Guaranteed For Life
A charitable gift annuity can provide you with fixed annual payments for the rest of your life.
These payments can be quite substantial for donors advanced in age.
The payout rate depends on the beneficiary’s age at the time of the gift. The older you are, the greater the payment.
UO Gift Planning
(541) 346-3016 or (800) 289-2354
Fax (541) 346-2574
E-mail giftplan@uoregon.edu
Payout rates are set by the American Council on Gift Annuities (ACGA). These rates are set to meet two goals: to provide increased cash flow to beneficiaries and to ensure that a significant amount of the original gift will be available to the designated charity after the lifetimes of the beneficiaries. |
