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Charitable Gift Annuity

One of the oldest and most popular ways to benefit Case Western Reserve University has become even more appealing in today's economic circumstances.

How it Works: You give the university cash or securities and sign a simple agreement with Case Western Reserve. In return, the university pays you—and your spouse, if applicable—an income for as long as you both live. The size of the payments depends on the amount you contribute and the ages of the beneficiaries. The older the beneficiaries, the higher the rate of return.

These rates are much higher than the returns currently provided by certificates of deposit, money market funds, treasury bills and bonds, or almost any other investment. They are fixed for life and are backed by the full financial resources of Case Western Reserve.

Unique Benefits: Gift annuities provide tax benefits that make them even more attractive:

  • If you fund an annuity with appreciated securities, you avoid, or at least defer, capital gains on the sale of the securities.

  • You receive an immediate federal income tax deduction when the annuity is purchased. The size of the deduction depends on your age and the number of beneficiaries.

  • A significant portion of the income produced by the annuity is exempt from both federal and state income taxes. The effective after-tax return provided by a gift annuity is thus significantly higher than the stated interest rate.

Most importantly, the funds used to purchase the annuity will pass to Case Western Reserve, for whatever purpose you choose, when the income beneficiaries pass away, creating a permanent legacy for CWRU Crew.

To start a conversation about supplementing your income through a charitable gift annuity to benefit CWRU Crew, please contact the university's Office of Planned Giving at 1-877-477-1143.

Charitable Remainder Trust

Like to have your cake and eat it too? A charitable remainder trust lets you make a substantial gift to Case Western Reserve University today and enjoy the income from the donated property for years—or for life.

How it Works: You transfer a cash, stock or other property into a trust. Then the university pays you—or whomever you choose—an annual income for a set time. Payments can be a set number of years but are usually for the life of the recipient. The amount of income depends on the type of trust you establish. Any money remaining at the end of the trust term is transferred to the university. The income tax deduction depends on the amount going into the trust, how long it is expected to run and the level of the annual income payment.

Each type of charitable remainder trust offers unique advantages and planning opportunities. A unitrust provides payments that vary with the value of the trust each year. An annuity trust offers the security of knowing exactly how much income to expect with fixed, annual payments.

Unique Benefits: Charitable remainder trusts provide tax benefits that make them even more attractive:

  • You select the payout rate at the time you establish the trust.

  • You determine how trust assets are invested and indirectly determine how trust distributions will be taxed.

  • You receive a federal income tax deduction when you establish the trust. The amount of the deduction depends on your age and the number of beneficiaries.

  • You avoid or defer capital gains that would normally be incurred from the sale of stock or property that has accumulated value over years.

  • If you establish a charitable remainder unitrust, you can delay payout of your income until your retirement.

Most importantly, the funds remaining in the trust at the end of the trust term will pass to Case Western Reserve, for whatever purpose you may choose.

To start a conversation about supplementing your income through a charitable remainder trust to CWRU Crew, please contact the university's Office of Planned Giving at 1-877-477-1143.

Deferred-Payment Gift Annuity

Each year, many of Case Western Reserve University's alumni and friends choose to partner with the university to realize mutually beneficial philanthropic plans.

Deferred-payment gift annuities offer income payments that start at a future date for individuals looking to both round out their retirement planning and help the university fulfill its support to CWRU Crew.

How it Works: Deferred-payment gift annuities are based on age and are created by a simple contract between you and the university. In return for a gift of money or property, the university promises to pay you a certain dollar amount or percentage of the gift. The longer you defer payment, the higher the payment will be.

Donors may name a single beneficiary or themselves and one other person to receive lifetime payments from the gift annuity. After providing payments to the donor or the designated beneficiaries for life, the balance of the annuity will be used for the charitable purpose designated by the donor.

Unique Benefits: In addition to providing a valuable income stream, deferred-payment gift annuities also offer the following benefits:

  • You qualify for an immediate federal income tax deduction in the year the gift is made—a deduction that increases with the length of time the payments are deferred.

  • You can defer and even avoid capital gains on the sale of the securities if you fund an annuity with appreciated securities.

  • A significant portion of the income produced by the annuity is exempt from both federal and state income taxes. The effective after-tax return provided by a gift annuity is thus significantly higher than the stated interest rate.

To start a conversation about supplementing your income through a deferred-payment gift annuity to CWRU Crew, please contact the university's Office of Planned Giving at 1-877-477-1143.

 

 

 

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Last modified: November 11, 2013
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