Give a Gift that Pays You Back
“Any alumnus interested in the financial welfare of Southeast students should seriously look at a charitable gift annuity,” says Swayne Byrd, an architect in Sikeston, Mo.
The charitable gift annuity program offers a steady, dependable stream of lifetime income.
“They are our most popular life-income plan because they really offer a great combination of benefits,” says Trudy Lee, director of planned giving.
Those benefits include paying a higher rate than comparable life-income gifts, fixed payments for your lifetime regardless of market fluctuations and conversion of appreciated but low-yielding assets with no upfront capital gains.
How It Works
Mr. and Mrs. Smith are both 75. They give $50,000 to the University in exchange for an annuity. Southeast’s payment rate for their combined ages is five percent, which means they’ll receive $2,500 every year. They’ll receive an immediate tax deduction for a portion of the gift and fixed payments for the rest of their lives, even if one of them dies.
“The tax advantages of the annuity can’t be equaled in the financial market,” says Byrd. “More people
interested in the University should give it some thought. Currently, 75 percent or more of payments to you are tax exempt for the life of the gift plus you receive the satisfaction of contributing to a worthwhile university and helping students.
“I would encourage people to get on the ball with this. With interest rates low, people in their 70s can get up to six percent-plus with assurance it will be paid, and the gift can be directed to the department at the University in which you are interested. I’ve taken this before my financial advisors and none can say anything but great praises for it.”
Lee says another option for retirement planning is a deferred payment gift annuity.
“You make a gift now and receive the tax benefits; however, you specify a date in the future when you want your annuity payments to begin,” says Lee. “The longer you wait, the larger the payment. You get added security in retirement, and Southeast students benefit from your planning.”
“I have given an annuity,” says Byrd, “and I’m going to give another one. I am that satisfied.”