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Charitable Gift Annuities |
A charitable gift annuity is a contract, under the terms of which you can make a gift to the university in exchange for our promise to make periodic payments of a fixed amount to you or a chosen beneficiary, and possibly one additional recipient, for life. To establish a charitable gift annuity with The Catholic University of America, a gift of $25,000.00 or more is required, and the income beneficiary(s) must be at least 60 years old. Payments are made quarterly, and a portion of the payments may be tax free. Funding a charitable gift annuity with appreciated marketable securities can be particularly advantageous tax wise. Three factors govern payments:
- the gift amount
- the age of the income recipients
- the gift annuity rate
Based on those variables, we can provide you with customized gift annuity projections. Please contact our Office of Planned Giving for a personalized analysis.
Immediate Annuity
Fannie Fatima, a sixty-five year old alum and shrewd investor, has seen her holdings in Cana Wineries, Inc. grow to a value of $25,000.00, after purchasing those shares several years ago for $1,000.00. Loyal to her alma mater, and eager to stabilize her future income flow, she decides to gift those shares to CUA in a gift annuity arrangement. She will benefit from a deduction of $7,775.00, and will receive payments totaling $1,500.00 annually, partially tax free. In addition, her capital gain liability will be greatly reduced, and spread over time.
 Deferred Annuity
Fifty-five year old Vinny Vestibule, a hard working attorney, looked forward to eventually slowing down, enjoying some travel, and spending more time on the golf course. With his mortgage recently paid off and his youngest through college, he realized he now had more financial flexibility than was the case previously. Knowing he would be working for at least a few more years, he wanted to stabilize his retirement income independent of nerve wracking market fluctuations. After conferring on the 17th green with Johnny Jerusalem, his financial advisor, Vinny makes a cash donation of $50,000.00 to fund a deferred gift annuity. He will get an immediate deduction of over $13,500.00, and CUA will furnish him with $3,600.00 per year in annuity payments, partially tax free, starting in the year in which he turns sixty.
(Note: Figures shown in the examples are used for demonstration purposes only, and are based upon assumptions that may not be applicable in every case. Specific amounts will differ in individual cases depending upon the size and timing of the gift, the current or applicable rates, and other relevant variables.)
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