Spring 2009: Campaign Update

Infographic comparing annuities to CDs

Avoid Risk, Cut Taxes with Charitable Gift Annuities

Many Happy Returns

The Perks of Charitable Gift Annuities: Beyond the great benefit of investing in Emory, charitable gift annuities offer higher rates, better tax deductions, and larger payments than CDs. Examples above illustrate a 65-year-old donor making a minimum investment of $10,000 and are based on the April 2009 IRS discount rate.

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Investors who want to avoid the risks that today’s economy holds are finding a compelling solution in charitable gift annuities. At Emory, this financial strategy enables alumni, parents, and friends to support the University, reduce their tax burden, and receive a steady stream of income for life.

“If you are retired and living off your capital, you have two things to worry about. One is that your portfolio might crash. The other is that you might live too long and run out of money to buy groceries. Consider a charitable gift annuity,” writes Forbes Senior Editor William Barrett in the January 12, 2009, magazine.

Barrett recommends charitable gift annuities as a financial “safety net” and says “if you choose well you’ll get an immediate tax deduction, a decent return, zero volatility, and the psychic pleasure of supporting a worthy cause.”

Jane Gole 79MBA (photo, PDF) and her husband, James, who had considered making a substantial gift to Emory for years, discovered that a charitable gift annuity would meet all of their financial goals.

“We wanted to make a gift to Emory, avoid some capital gains taxes, and receive income that is currently higher than CDs and is about half tax-free,” she says. “Emory helped us pick the mix that would maximize our tax deduction this year.”

The couple’s gift will help build the Arthur Deitz Memorial Fund scholarship in Emory’s Goizueta Business School and support the Billops-Hatch Archive, a collection of African American works in the University’s Manuscript, Archives, and Rare Book Library.

A donor can create a charitable gift annuity with a transfer of cash or marketable securities. There are no fees for the transaction, which involves a simple two-page contract. In return, Emory makes specified annuity payments to the donor, another beneficiary, or both—for life. The payments are backed by Emory’s assets, making them secure, and they can be scheduled quarterly, every six months, or annually. Annuity payments can begin immediately or wait until a later date, and they can go to one person for a lifetime or to two people in succession. The payment rate depends on the donor’s age and number of people who will receive payments.

Donors can claim an up-front federal income tax deduction, which depends on the variable monthly “discount rate” set by the Internal Revenue Service. A portion of the annuity payments may be tax-free. (For an example, see illustration at top of page.) At the end of the term, the remainder of the annuity goes to Emory.

For donors like the Goles, who value education and are savvy about financial planning, the charitable gift annuity is a perfect choice. “We’ve always promoted educational institutions,” she says. “I can’t think of a better investment than Emory.”

For more details, visit www.campaign.emory.edu/ways-to-give and click on Gift Planning or call 404.727.8875.

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Spring 2009

Of Note


Campaign Emory Update