Ways to Give - Life Income Plans - Charitable
Gift Annuities and Deferred Gift Annuities
Charitable Gift Annuities
With
a simple contractual agreement, a donor can establish an
educational endowment fund benefiting a particular area of
interest and receive a guaranteed lifetime income. With a minimum
gift of $20,000, a donor receives guaranteed quarterly income
payments for the rest of his or her life. Annuity rates can be
offered for one or two people and range from 4.8% to 11.3%,
depending on the age and number of income recipients. Click here
for rate table for
one-life annuity (PDF) or
two-life annuity (PDF). Gifts of cash, securities, real
estate or other appreciated property can be used to fund a gift
annuity. There are no start-up fees, the donor qualifies for a
substantial charitable tax deduction and capital gains taxes can
be reduced and spread over a number of years.
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Example:
Paul is a 76-year-old graduate of the University of Maine. He
owns some highly appreciated but low-yielding stock. He can
increase his income from the stock and benefit The University of
Maine at the same time. In exchange for $20,000 worth of stock,
the University of Maine Foundation could guarantee him a 7.2 %
fixed annuity on his gift - $1,440 per year for the rest of his
life. In addition, he could claim a $9,256.80 income tax
charitable deduction and spread capital gains tax over a number
of years. He can sign a fund description detailing how he would
like the income from the remaining principal from his gift to be
used to benefit University of Maine students after his death.
Deferred Gift Annuities
By establishing a deferred gift annuity now
and directing the quarterly payments to begin after one's 65th
birthday, a donor can enhance retirement income substantially and
receive a larger charitable deduction.
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Example:
Maureen is a 55-year-old graduate of the University of Maine.
She wants to supplement her retirement income, to claim an
income tax charitable tax deduction now while she's better able
to use it and to help University of Maine students. If she puts
$20,000 into a deferred gift annuity now, her current income tax
deduction would be $9042.20. When she is 65, the annuity will
begin paying her $1,940 each year for life - a return of 9.7%.
After her death, the income from the remaining principal will be
used to help the students Maureen had hoped to assist.
The University of Maine Foundation has
professional giving officers ready to work with you and your
advisors. We may be reached Monday-Friday between the hours of 8
am and 5 pm by calling 1-800-982-8503 or via email at
umainefoundation@maine.edu.
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