A charitable gift annuity is a gift that will provide you with income for the rest of your life and generously support the University.
Please Note: Due to individual state restrictions, U.Va. is not able to offer gift annuities in all states. Please call the Office of Gift Planning at 434-924-7306 or 800-688-9882 to determine if this option is available in your state. Or view our list of states eligible to offer gift annuities.
One-Life Gift Annuity
Mr. Taylor is 75 years old and wishes to support the University. He decides to fund a gift annuity with $30,000 in cash. The gift annuity rate for an individual his age is 5.8%, so Mr. Taylor will receive quarterly checks in the amount of $435 (or $1,740 annually) for the rest of his life in exchange for his $30,000 gift.
In addition to receiving regular fixed payments, Mr. Taylor will receive a portion of this income tax free. Mr. Taylor will also receive an immediate income tax charitable deduction of $12,803. When Mr. Taylor dies, the remainder of the annuity (estimated at $42,525) will support the University school or program designated in the contract he executed with the University of Virginia Foundation.
Two-Life Gift Annuity
Mr. Taylor wishes to include his wife, age 72, in his gift annuity plan. Because there will be two individuals receiving income, the gift annuity rate will be 4.9%. The Taylors’ quarterly payment will be $367.50 ($1,470 annually). A portion of this income payment will be tax free. When one beneficiary dies, the other will continue to receive the annuity payments.
Deferred Gift Annuity
Ms. Pearce is 55 years old. She recently received a $50,000 bonus from her employer. She is interested in establishing a gift annuity but doesn’t need the income until she retires. Ms. Pearce decides to fund a gift annuity now but defer income payments until she is 65 years old. She will be able to claim an immediate income tax deduction of $13,109 on her current year federal tax form. In ten years, she will begin receiving quarterly income payments of $800 ($3,200 annually) for the remainder of her life. Because she deferred the payments for a decade, Ms. Pearce’s gift annuity rate will be 6.4%.
Use our Gift Calculator to see how a gift annuity or deferred gift annuity can work for you.
The University of Virginia does not provide legal, tax or financial advice. We strongly recommend that you consult professional advisors on all legal, tax or financial matters, including gift planning considerations. To ensure compliance with certain IRS requirements, we disclose to you that this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties.