Charitable Gift Annuity

Establishing a charitable gift annuity involves a simple agreement between the donor and the UW Foundation, and a gift of cash or securities to the UW Foundation. In exchange, the beneficiary of the annuity receives a fixed annual payout for life. Upon the annuitant’s passing, the remaining principal of the donor’s initial gift will go towards the campus unit or program specified in the initial agreement.

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 one other annuitant. The amount of the payments is based on the age(s) of the income beneficiary(ies). The older the annuitant, the higher the payout received. In addition to the stream of fixed payments, the gift will also generate an immediate charitable income-tax deduction for the donor. 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.

Planning Pointer: The charitable gift annuity is especially rewarding if funded with appreciated long-term securities generating little or no income. If you transfer such securities to the UW Foundation in exchange for a charitable gift annuity, you will avoid a significant amount of capital-gain taxation and any remaining capital gain will be reported in prorated amounts over the life (or lives) of the beneficiary(ies).