Charitable Gift Annuity—Immediate Payment

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

While gift annuities can be funded at a younger age, this type of gift might be especially attractive if you are aged 70 or older, you want to support UA Foundation, 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: $30,000 or more

Example: Anne, aged 78, gives $25,000 in cash to UA Foundation 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 UA Foundation.

Pointer: The charitable gift annuity is especially rewarding if funded with appreciated long-term securities that generate little or no income. If you transfer such securities to UA Foundation 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).

* Figures cited in any examples are for illustrative purposes only. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. Information contained herein was accurate at the time of posting.

State law may further impact your individual results.

Alaska residents: A qualified charitable gift annuity is not an insurance policy in the State of Alaska, is not subject to regulation by the Insurance Division, and is not protected by the Life and Health Insurance Guaranty Association established under Alaska Statute AS 21.79.040 or any other association that guarantees payment under a policy of insurance. The State of Alaska does not in any way approve or endorse this annuity illustration or subsequent agreement.

California residents: Annuities are subject to regulation by the State of California. Payments under this agreement, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association.

Oklahoma residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the Oklahoma Division of Insurance.

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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