The University serves Virginia, the nation, and the world by preparing responsible citizen-leaders; advancing, preserving, and disseminating knowledge; and providing world-class patient care.
All gifts of any kind help secure the University’s place as a premier institution of learning and make it possible for our students, faculty, and researchers to shape a brighter.
You can give to all 12 schools across Grounds. The possibilities are endless for supporting our students, faculty, and programs. Together, we will find the way forward.
You can join the growing number of alumni and friends who invest now in the University’s future by including UVA as a beneficiary of their wills, charitable trusts, and retirement plans. Gifts like these can offer you and your family significant tax benefits as well as greater financial flexibility in meeting your personal and philanthropic goals.
Through Honor the Future, the Campaign for the University of Virginia, we are building on our strong foundations to support the president’s vision: to become the best public university by 2030 and one of the very best in the world.
Overview
A charitable gift annuity is a simple contract between the donor and the University. The donor makes a gift to the school or program of their choice, and in return, the University makes fixed payments to the donor for life. At the end of the contract term, the remainder is used for the purpose(s) the donor designated.
*Starting in 2023, if you are at least 70 1/2 years old, you may use an IRA qualified charitable distribution to create a charitable gift annuity or charitable remainder trust. There are some nuances we will be happy to discuss with you. More information is available here.
Please note: Due to individual state restrictions, UVA 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.
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 6.6%, so Mr. Taylor will receive quarterly checks in the amount of $495 (or $1,980 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 $13,037.70. When Mr. Taylor dies, the remainder of the annuity will support the University school or or program designated in the contract he executed with the University of Virginia Foundation.
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 5.7%. The Taylors’ quarterly payment will be $427.50 ($1,710 annually). A portion of this income payment will be tax-free. When one beneficiary dies, the other will continue to receive the annuity payments.
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 $13,708 on her current year federal tax form. In ten years, she will begin receiving quarterly income payments of $675 ($2,700 annually) for the remainder of her life. Because she deferred the payments for a decade, Ms. Pearce’s gift annuity rate will be 5.4%.
Use our Gift Calculator to see how a gift annuity or flexible gift annuity can work for you.
Don’t need income now? Try a flexible gift annuity.
In his book “Six Great Ideas,” American philosopher Mortimer J. Adler outlines six concepts that have been fundamental to the development of Western civilization. One of these—truth—supports our ability to make informed decisions about the world.
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.
