Gifts that return an income to you
Charitable gift annuity
What is a charitable gift annuity and how does it work?
A charitable gift annuity is a simple contract between you and the University of Nebraska Foundation. In exchange for your gift of cash, stocks or bonds, or marketable real estate, the foundation will pay a lifetime fixed income to you or your chosen beneficiaries. You receive an immediate charitable income tax deduction.
How much income will I receive?
The American Council on Gift Annuities publishes suggested payout rates (sample below), and we work with our donors to determine the appropriate payment, up to the ACGA rate, to accomplish goals for income, charitable tax deduction and the ultimate gift.
For more information on ACGA rates, visit www.acga-web.org.
Immediate Gift Annuity, One Beneficiary
|Age||Payout Rate||Rates Effective 7/1/18|
Immediate Gift Annuity, Two Beneficiaries
|Age||Payout Rate||Rates Effective 7/1/18|
Rates vary based on the age and number of beneficiaries and the timing of payments. For example, a deferred gift annuity allows you to delay fixed income payments while receiving an immediate charitable income tax deduction. Deferring the payments increases the payout rate, thereby providing higher annuity payments. In most cases, a portion of the income payments are considered a nontaxable return on investment and not subject to income tax.
The above table is for illustration purposes only and may not reflect the actual payout rate. More detailed rate information is available through the online gift calculator below or by contacting any University of Nebraska Foundation gift planning specialist. Gift annuities may be regulated based upon your state of residence. Please contact us for more information.
Frequently asked questions
Does a charitable gift annuity make sense for me?
If your goal is to receive a fixed income for yourself or your named beneficiary while also making a charitable gift, then a charitable gift annuity may be for you.
What are the benefits of a charitable gift annuity?
With a charitable gift annuity, you receive an immediate charitable income tax deduction. You or your beneficiary also receive fixed income payments for life.
Are charitable gift annuity payments taxable?
Depending on the type of asset used to fund the gift annuity, the income you receive may be partially tax-free, a portion may be taxed at your capital gains rate and the remainder at your regular income tax rate.
What happens to the charitable gift annuity after I die?
When no income beneficiaries remain, the gift annuity principal is used to benefit the University of Nebraska in the way you designated.
What is the minimum amount for a charitable gift annuity?
An unrestricted gift annuity, which allows the university to use your gift for its greatest needs, may be created with gifts of $10,000 or greater. If you desire to designate the college, program or purpose your gift will benefit, you may create a restricted-use gift annuity with a gift of $25,000 or more.
How do I learn more about establishing a charitable gift annuity?
To learn more, contact a University of Nebraska Foundation gift planning professional. They can provide tailored information on how a gift annuity may fit your needs. They can also assist you in directing your gift to a specific campus, college or program.
As with any gift, we encourage you to consult your own professional advisors to determine what is best for you.
Charitable Remainder Trust
What is a charitable remainder trust and how does it work?
A charitable remainder trust is a gift to a charity, such as the University of Nebraska Foundation, that provides an immediate charitable tax deduction and a continued income. After you transfer cash, securities or other property to a trust, you then receive a charitable tax deduction while paying no capital gains tax. During its term, the trust pays an income to you or your beneficiaries. When the trust ends, the remainder passes to the University of Nebraska Foundation to be used for the purposes you designated.
What type of assets are commonly used to establish a charitable remainder trust?
Cash or easily marketable securities, including bonds, are the most common types of assets given. Real estate and other assets are also appropriate in certain situations.
Does my gift qualify for a charitable deduction?
Yes; however the amount depends on several factors. Generally, the older and fewer income beneficiaries you designate, the higher your charitable deduction will be.
Is a charitable remainder trust a good option for me?
It is if you want to:
- Make an irrevocable gift to the university of $50,000 or more.
- Receive tax benefits and avoid capital gains taxes on the assets funding the trust.
- Receive an income for yourself or your beneficiaries from those assets.
How do I learn more?
To learn more, contact the University of Nebraska Foundation’s gift planning professionals. They can provide tailored illustrations to help you and your advisers understand how a charitable remainder trust fits into your overall plans.