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In This Issue

       

A gift that helps you and WSU

With charitable gift annuities, receive income for life and save on taxes

The idea of a charitable gift annuity is nothing new, but its benefits will never grow old. In America, the concept dates back to 1843, when a Boston merchant donated money to the American Bible Society in exchange for a flow of payments. Today, a charitable gift annuity offers valuable tax benefits. But perhaps more valuable than the financial advantages is the satisfaction of helping continue the mission of WSU.

Income Stream

A charitable gift annuity involves a simple contract between you and the Wichita State University Foundation. You agree to make a gift to the WSU Foundation and we agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life. The annuity rate is based on the age(s) of the recipient(s). Generally, rates are higher for older single persons, as opposed to younger couples. Sample gift annuity rates are below:

Annuity Rates

One Recipient

  • Age
  • 60
  • 65
  • 70
  • 75
  • 80
  • Annuity Rate
  • 4.4%
  • 4.7%
  • 5.1%
  • 5.0%
  • 5.7%

Two Recipients

  • Age
  • 60/60
  • 60/65
  • 65/70
  • 70/70
  • 70/75
  • Annuity Rate
  • 3.9%
  • 4.0%
  • 4.4%
  • 4.6%
  • 4.8%

 

Tax Benefits

When you create a charitable gift annuity with the WSU Foundation, you receive a federal income tax deduction. In addition, a portion of the annuity payments made to you are treated as tax-free income.

Consider this illustration

Mary, age 65, and John, age 70, want to make a contribution to the Wichita State University Foundation that will support our work for generations to come, but they also want to ensure that they have dependable income during their retirement years. They establish a $50,000 charitable gift annuity with the Wichita State University Foundation. Based on their ages, they will receive a payment rate of 4.4 percent, which means that they will receive $2,200 each year for the remainder of their lives. Based on their income tax bracket, they are also eligible for a federal income tax charitable deduction of $13,069 when they itemize. Finally, they know that after their lifetimes, the remaining amount, projected at $25,000, will be used to support the WSU students, faculty or program of their choice.

For age-specific gift annuity rates, see http://plannedgiving.wichita.edu. For a personalized gift annuity illustration, reflecting your individual benefits, contact:

 

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