Charitable gift annuity—immediate payment

To establish a charitable gift annuity, you make a gift to the University of Rochester and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit any University of Rochester 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 University of Rochester, 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 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.

Gift Range: $5,000 and more

Example: Anne, aged 78, gives $25,000 in cash to the University of Rochester in exchange for a gift annuity. She receives an income-tax deduction of approximately $11,273, based on her age. She will begin receiving income checks of $1,900 each year for the rest of her life. When she passes away, the remaining principal will benefit the University of Rochester.

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 University of Rochester 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).

Income for Life from the University of Rochester?
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A Charitable Gift That Pays Income and Provides Tax Benefits?
George Hood ’69 explains why he enjoys his University of Rochester charitable gift annuities.

The University of Rochester holds a special place in George Hood’s heart. His late wife of 42 years, Ann Marie, was a volunteer at the University. She loved the experience—which led George to establish a named endowed scholarship by including the University in his will and funding several charitable gift annuities. Hear why George enjoys his University of Rochester charitable gift annuities.

*The information contained herein is offered for general informational and educational purposes. The figures cited are accurate at the time of writing. State law may affect the results illustrated. This is not legal advice. Any prospective donor should seek the advice of a qualified estate and/or tax professional to determine the consequences of their gift. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.

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