A life income gift allows individuals to make a substantial
gift to FIU while still providing for their personal financial
needs. These are “split interest” gifts which combine a gift
to FIU with income to the donor or other individual(s) the
donor may designate. Such arrangements are especially attractive
because they offer significant tax benefits and may also enable
the donor to increase his or her income from the assets contributed.
The Charitable Gift Annuity.
A charitable gift annuity is a simple
contract between an individual and the FIU Foundation. In this
agreement, the donor irrevocably transfers cash, securities
or other assets to the FIU Foundation in exchange for a fixed
annual payment for one or two annuitants for life. The amount
of the annuity payment depends primarily on the age of the
annuitant(s) – the older the annuitants, the higher the rate
of the annuity payment. Annuity payments are generally immediate , with payments beginning at the end of the quarter that assets are transferred, but also can be deferred , with payments beginning at a future date agreed upon at the time the assets are transferred.
Benefits: As noted above, the amount of the annuity payment from a charitable gift annuity varies with the age of the annuitant(s). The benefits are as follows:
- A stable, fixed income for the life of each annuitant.
- In most cases, a significant portion of the annual income
is tax-free (the percentage of tax-free income depends upon
the age of each annuitant).
- In most cases, significantly increased income from assets
used to fund the annuity (e.g., cash from certificates of
deposit or stock paying minimal dividends).
- A substantial income tax deduction in the year the gift
is made.
- Can reduce estate taxes and estate administration expenses.
- For annuities funded with appreciated securities, forgiveness
of a substantial portion of capital gains tax, with the remainder
spread out over several years.
Establishing a Charitable Gift Annuity at FIU: The FIU Foundation has been authorized to issue charitable gift annuities by the Florida Department of Insurance and currently has several in force. Annuity payments are guaranteed by the general assets of the FIU Foundation, which currently exceed $80 million. The minimum to establish a charitable gift annuity with the FIU Foundation is $20,000. There is no maximum amount.
FIU's Office of Planned Giving will be happy to provide you with a free customized computer analysis of rates, tax deductions and other benefits of either a single-life or two-life charitable gift annuity suitable to your situation. For additional information or to request an application form, please contact Roger Wyman, Director of Planned Giving, at the address below.
Roger Wyman
Director Foundation Relations & Director Planned Giving
MARC 559
305.348.3332 phone
305.348.3337 fax
wymanr@fiu.edu
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