If you would like to produce a secure, steady income for yourself while providing a significant gift to the University of Kansas, consider establishing a charitable gift annuity. In essence, this is a contract between you and KU Endowment stating that, in exchange for your gift, KU Endowment agrees to pay you, and/or another beneficiary, a fixed dollar amount annually for life.
Part of that income may be tax-free, or taxed at the more favorable capital gains tax rate, depending on the asset you select to fund the annuity. The annual payment amount is based on the age of the income beneficiary(ies) at the time of the gift. At the death of the last income beneficiary, KU Endowment will use the principal in accordance with the terms you have established for your gift.
You can establish an annuity with a minimum gift of $10,000. The minimum age for a donor to establish a gift annuity is 65 years or older. This option is most appropriate for older beneficiaries who are looking for a fixed income payment. KU Endowment follows the rates established and approved by The American Council on Gift Annuities.
|Current gift annuity rates — single life
|| payout rate
Deferred Gift Annuity
|Article I. Rates effective as of 1/1/12 – Approved by the American Council on Gift Annuities.
For many people, a fixed income from a charitable gift annuity is very attractive, but they would prefer not to receive income immediately. These donors can establish a deferred gift annuity, which allows the donor to make an immediate gift and set a future date to begin receiving income. By deferring income for a year or more, the donor will gain a higher gift annuity rate and a higher tax deduction. The income beneficiary must be 65 years of age or older when payments begin to be received.
This online calculator
will give you a rough idea of the benefits you can derive by establishing a gift annuity. The American Council on Gift Annuities
offers detailed information about this method of giving. You also may wish to consult with your legal and tax advisers.
The Office of Planned Giving staff
is ready to consult with you and/or your advisers about charitable gift annuities, and to help with questions about other forms of charitable giving that may benefit you, your family and the University of Kansas.
Summary of benefits:
The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.
Utilization of matured gift annuities will be deferred for a period of twelve months during which time KU Endowment will earn interest income on the asset as a means of recovering expenses incurred in the marketing and administration of these gifts. At the end of the 12-month period, the total value of the gift at maturity will be utilized in accordance with the donor's wishes.
- Satisfaction in supporting an area of KU that is important to you.
- Fixed lifetime income for up to two beneficiaries.
- An immediate charitable income tax deduction.
- Relief from upfront capital gains taxes on gifts of long-term appreciated property.
- Reduced federal estate taxes.
- Membership in the Watkins Society or the Bell Legacy Society.