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.
To learn what rates you would currently qualify for, please Request a Gift Calculation.
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
The University of Wisconsin Foundation is currently unable to issue charitable gift annuities to residents of the state of Washington.
*Please consult with a tax advisor if interested in these options.
