Alumni CLASnotes Fall 2002

Investing in the Future

Volatile stock markets have prompted many of us to move or to seriously consider moving a significant portion of our assets to money market accounts, certificates of deposit, preferred stocks, treasuries or bonds. However, the current rates being paid on these assets may cause reflection. There may be another option available to you.

A charitable gift annuity is a contract between you and the University of Florida Foundation, Inc. You transfer cash, appreciated stocks or bonds to the charity. The UF Foundation, in return, guarantees to pay you (or two income beneficiaries) a fixed dollar amount for as long as the income beneficiary lives. You cannot outlive the payments, regardless of how long you may live.

Charitable gift annuity rates are extremely attractive for mature donors. A single donor at age 65 would receive an annuity rate of 6.7 percent. Therefore, if $100,000 were transferred, the annuitant would receive $6,700 each year of his or her lifetime. The annuity rate for a person age 70 is 7.2 percent. A person age 80 receives a rate of 8.9 percent, and an individual age 90 or older receives a rate of 12 percent.

The living donor receives a charitable income tax deduction for the present value of the future interest given to the College of Liberal Arts and Sciences. A portion of the capital gain for gifted appreciated stocks or bonds is forgiven, and the remaining capital gains may be prorated over the donor-annuitant's lifetime. Some income to the annuitant may also receive other tax-advantaged characteristics.

If you are over 55 years of age and would like more information about creating a charitable gift annuity, please call Cynthia Butler at (352) 846-3447.