Charitable Gift Annuity

Immediate Payments

Once your gift is made, charitable gift annuities can start providing income payments monthly, quarterly, semi-annually, or annually for life. An example of how they work:

Dennis, 75, and Mary, 73, want to make a contribution to UofL but they also want to ensure that they have dependable income during their retirement years. They fund a $25,000 charitable gift annuity with appreciated stock that they originally purchased for $10,000.

Based on their ages, they will receive a payment rate of 6.0%, which means that they will receive $1,500 each year for the remainder of their lives. They’re also eligible for a federal income tax charitable deduction of $8,792* when they itemize.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Deferred Payments

Deferring annuity payments enables younger donors to receive tax benefits now and increase the income they receive—the longer the deferment the greater the payment. An example of how they work:

Craig, 56, and Sarah, 55, want to make a charitable gift this year that will help their and the University of Louisville’s futures. They establish a $25,000 charitable gift annuity now that will provide income during their retirement years. They choose to defer payments until they are 71 and 70. Based on their current ages, they will receive a payment rate of 11.2%, which means that they will receive $2,800 each year for the remainder of their lives. They’re also eligible for a federal income tax charitable deduction of $10,540* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support UofL.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.