To establish a charitable gift annuity, you make a gift to the UW Foundation and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit any UW Foundation program that you choose.
While gift annuities can be funded at a younger age, this type of gift might be especially attractive if you are aged 70 or above, you want to support the UW Foundation, and you would like to secure an immediate stream of income for yourself or for yourself and your spouse. The amount of the payments is based on the age(s) of the income beneficiary(ies). The older one is, the higher the payout rate one receives. In addition to the stream of fixed payments, the gift will also generate an immediate charitable income-tax deduction. If you are younger and you wish to begin receiving payments at a future date, a deferred-payment gift annuity might be a more suitable gift arrangement.
Benefits
- Guaranteed payments for life that are favorably taxed
- When gift is funded with cash, part of payment will be tax-free
- When gift is funded with appreciated property, part will be taxed as capital gain, part will be tax-free, and part will be taxed as ordinary income
- Federal income-tax deduction for a portion of your gift
- Gift will provide generous support for the UW Foundation
