A charitable gift annuity is a simple contract with the University of Virginia Foundation, which in exchange for your contribution of cash, stock, real estate or other property agrees to pay one or two people you designate a fixed annuity for life. As donor, you can also be one of the annuitants, or you can create the annuity for someone else. If there are two annuitants, payments can be made to them jointly or successively.
The annuity amount will be fixed at the time you fund your contract and will be based on annuitant age and the maximum recommended rates set forth by the American Council on Gift Annuities. The payments will not be affected by investment performance or changes in interest rates over time, are typically made in quarterly installments, and are backed by the University of Virginia Foundation.
At the end of the contract term, the remaining contract amount will be distributed to the Law School Foundation to be applied to the purposes you designated when you made your gift.
How It Works
- You transfer cash or securities to the University of Virginia Foundation.
- The UVA Foundation pays you, or up to two annuitants you name, fixed annuity payments for life.
- The remainder passes to the Law School Foundation when the contract ends.
- You will receive a charitable income tax deduction based on the charitable portion of your contract.
- A portion of your annuity payment will be tax-free.*
If you fund your gift annuity with appreciated securities:
- If you are also an annuitant, you can convert a low-yielding asset into an asset that yields a guaranteed payment stream for the rest of your life.
- You can avoid paying capital gains tax immediately, and only a portion of the capital gain will be recognized in increments over your remaining actuarial life expectancy. Those portions will be taxed at the capital gains rate.*
* Note: Capital gain and tax-free income benefits are in effect only during the period defined as your remaining life expectancy as determined on the contract date. If you live longer, the entire annuity payment will be taxed to you as ordinary income.
Frequently Asked Questions
Am I eligible to establish a gift annuity?
An annuitant must be at least 55 years old to receive payments from an immediate gift annuity. If you are younger, a deferred gift annuity might meet your needs.
What annuity rate will I receive?
Like most charities, the University of Virginia Foundation offers the maximum charitable gift annuity rates recommended by the American Council on Gift Annuities. The rate is multiplied by the value of your initial contribution to determine the amount of your annuity payment. Click here for a summary of current ACGA rates.
Note that if you defer the start date of your annuity payments for at least a year, your rate (and deduction) will be higher. Learn more about deferred gift annuities.
- A charitable gift annuity can be created with a minimum gift of $5,000 in cash, or marketable securities.
- Gift annuity rates are partly determined by the beneficiary’s age. Younger donors may be interested in a deferred gift annuity.
For More Information
Email us, or call us at 877-307-0158 (toll free) or (434) 924-4154 (direct) so that we may answer your questions and help you through the process.
The materials provided in this website and the examples contained herein are for illustration purposes only and are not intended as legal or tax advice. We encourage you to consult your own legal and tax advisor.
*Created in 1986, the University of Virginia Foundation handles the acquisition, management and sale of real estate on behalf of all University of Virginia schools and units, including the Law School. In addition, the UVA Foundation serves as the contracting party for all charitable gift annuities established to benefit all University schools and units.