A charitable gift annuity offers a stable source of income during your lifetime and provides a gift to VIU upon your death. You make an irrevocable transfer of money or other assets to VIU, a portion of which is used to purchase an annuity. The remainder of the principal is considered an outright gift to the university, which transfers to VIU upon your death.
The annuity pays you a guaranteed income for life or a specified time, regardless of fluctuations in the market. The amount of the annuity depends on your age and income requirements, but the rate is almost always higher than what you get from investments, and it is guaranteed.
Arranging a gift annuity also relieves you of investment decisions and worries. The income you receive from the annuity will remain fixed and it frees you from investment decisions. You may select an annuity that continues as long as either spouse lives. If your gift is funded with cash, a substantial part of the annual annuity payments may be entirely tax free.
A deferred annuity works the same way as a charitable gift annuity, except that the first annuity payment is deferred for at least one year from the date of the gift. This is an excellent method of arranging dependable retirement income. By deferring the date on which annuity payments begin, you will receive a larger income charitable deduction in the year of the gift.
Benefits to You
- an immediate income tax deduction and capital gains tax savings if transferring securities
- a lifetime stream of fixed payments for you and/or your spouse, even in volatile markets
- ability to support a University priority that meets your interest, such as student aid, building projects, programs or research
- a larger payout than the interest you would receive on many other investment options
The staff of the Advancement & Alumni Relations Office will work closely and confidentially with you and your advisors to ensure your planned gift suits your financial and philanthropic needs. Please contact Jason Coates, Advancement & Alumni Relations Office, Major Gifts and Legacies at firstname.lastname@example.org or at 250.740.6258.