Office of Gift Development

Charitable Gift Annuities

A charitable gift annuity is a special philanthropic tool that enables donors to support a program of choice at IU School of Medicine and pays the donor income for the rest of his or her life. As a result, giving to a special cause can also provide a continuous stream of income for the future.

How it Works

  1. Make a gift to Indiana University Foundation.
  2. IU Foundation pays a fixed annual income. A charitable gift annuity may also be established to pay two beneficiaries, such as the donor and spouse.
  3. The remaining balance benefits the area designated at IU School of Medicine and may be directed to any area of research or medical education.

Benefits of a Charitable Gift Annuity

  • Income for life at generous fixed rates, backed by the assets of Indiana University Foundation
  • Immediate income tax charitable deduction
  • A portion of the annual payment is tax-free
  • Income is not affected by fluctuations in the economy
  • Reduce or eliminate estate taxes
  • Reduce and defer capital gains if funded with appreciated assets

Illustration

The example below is based on a $100,000 single life charitable gift annuity. Rates reflect October 2017 and are subject to change.

AgeRateCharitable Tax DeductionAnnual Income
604.7%$24,251$4,700
705.3%$38,677$5,300
806.9%$49,473$6,900

Delay Payments

People younger than 60 or who don’t need payments immediately can set up a deferred charitable gift annuity. This allows a delay in receiving payments until a later date as specified, such as upon retirement. By delaying payments, the donor benefits from a higher rate of return but are still eligible for an immediate charitable tax deduction.