Charitable Gift Annuities
WVXU AND WMUB NOW OFFER CHARITABLE GIFT ANNUITIES
WVXU AND WMUB are excited to be able to offer special members and supporters a new way to benefit themselves as well as WVXU or WMUB, through a charitable gift annuity. While gift annuities have been around for a long time, WVXU AND WMUB felt the time was right this year to start a gift annuity program. Because gift annuities may also be new to you, we answer some of the most frequently asked questions. We think you will be impressed by the many advantages a gift annuity offers.
How does a gift annuity work?
In return for your contribution, and pursuant to a signed agreement, WVXU AND WMUB agree to make fixed payments for life.
Who may receive payments from the annuity?
Payments may be made to up to two beneficiaries (also called annuitants). While typically the donors name themselves, an annuity can also be established to benefit others, such as a parent or sibling.
What will the amount of the payments be?
The annuity payments will be determined at the time the annuity is entered into, and will be based on the age/s of the annuitant/s at that time. Please refer to the accompanying chart for sample rates for both one- and two-life annuities.
Current Gift Annuity Rates:
Age(s) One Life Two Life
67.5 4.9% 4.4%
75 5.8% 5.0%
80 6.8% 5.7%
85 7.8% 6.7%
90 9.0% 8.2%
How does a gift annuity benefit WVXU AND WMUB?
At the end of the annuitant’s life (or, with a two-life annuity, the end of both lives), the remainder of the principal you have transferred will be used to support the work of WVXU AND WMUB.
Are there tax advantages with a gift annuity?
Yes. The donor receives a charitable deduction in the year of the gift. In addition, a portion of the annuity payments will be tax-free, representing a return of the principal contributed.
Can I contribute securities for a gift annuity?
Yes. In fact, contributing highly appreciated securities which you have held for more than 12 months offers additional tax savings. The donor pays no tax on the capital gain attributable to the charitable gift portion of the contribution. If the donor is an annuitant, the gain attributable to the annuity payments does not need to be recognized in the year of the gift but can be reported ratably over life expectancy.
To receive more information on Charitable Gift Annuities, please call Len Sternberg at 513-419-7116 or email email@example.com. All inquiries will be kept in strict confidence.