Charitable Gift Annuities

Secure Lifetime Income and Create a Lasting Legacy

Through a charitable gift annuity, you can receive guaranteed lifetime income, reduce your tax burden, and make a lasting impact on St. Thomas students.

By making a gift of cash, stock, mutual funds or retirement assets, you'll receive fixed payments for life, providing steady financial support no matter what the economy does. When your annuity ends, the remaining value of your gift will help educate future Tommies and advance the university's mission for the common good.

Provide Security for Yourself or a Loved One

You can designate the payments for yourself, for someone else, or for yourself and another person. The amount of each payment will depend on the age of the person who receives the payments. Rates can be as high as 10 percent and based on the annuitant's age at the time the gift annuity is established.

Tax Benefits of a Charitable Gift Annuity

Depending upon your gift, you may receive the added benefit of mostly tax-free payments. You will also receive a charitable deduction in the year that you set up the gift annuity.

Funding a Gift Annuity with Stock

If you own appreciated stock or mutual funds, a gift annuity may be even more attractive. By transferring assets to St. Thomas to fund the annuity, you capture increased tax savings. Some of your capital gains disappear, while some tax on gains can be spread out over years. Whether you fund a gift annuity with cash or stock, you receive an income-tax deduction right away (this is an illustration only; actual rates of return will vary).

Funding a Gift Annuity with Your IRA

Donors age 70½ or older may make a qualified charitable distribution of up to $50K to fund a charitable gift annuity. For updated gift annuity rates, contact a member of our Legacy Giving team.

Important Disclosures for Charitable Gift Annuities

Donors must itemize their deductions to receive a charitable income-tax deduction.

Charitable giving can result in significant tax, legal and financial consequences. The University of St. Thomas does not provide legal or tax advice. Donors should seek the advice of counsel prior to entering into a gift annuity agreement.

Payout rates, charitable deductions and other benefits vary based on a number of factors. With a gift annuity, you simultaneously make a charitable gift and provide payments for life to yourself and/or another person. The fact that you are making a charitable gift may entitle you to income, gift and estate tax deductions. However, because a charitable gift is involved, the annuity rates offered by the University of St. Thomas may be lower than those available through commercial annuities offered by insurance companies and other financial institutions.

State Specific Disclosures

• California: The payments made under a charitable gift annuity are subject to regulations by the California Insurance Department but are not insured or otherwise guaranteed by any government agency or the California Life and Health Insurance Guaranty Association.
• South Dakota: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.