A new type of gift option that has not been available to U-M donorscharitable gift annuitieswas approved by the Regents at their July meeting. U-M faculty, staff and alumni now can take advantage of this popular charitable giving opportunity that provides a fixed income for life. Charitable gift annuities have been in existence for more than 100 years and are one of the most simple life income plans available. An ever-increasing number of non-profit organizations are offering annuities because they are easy to understand and to establish.
Nationally, the charitable gift annuity program is considered the most popular life income arrangement available that appeals to individuals 50 years of age and older, says Jo Rahaim, director of gift planning in the Office of Development. With this new program, Michigan will join its peer institutions in providing another way by which our alumni and friends can support their University.
The gift agreement is a simple contract under which the University of Michigan will make fixed installment payments to its donor and/or another designated person for life in return for a gift of cash or marketable securities. Payment rates are based on the age of the annuitants; however, a gift annuity may appeal to people of all ages who desire a fixed income for life. It also can provide a good retirement income supplement.
Two forms of a charitable gift annuity are offered: a current gift annuity, which starts paying out within a year, and a deferred gift annuity, which may be established when younger. This form would start paying out at age 50 or older. Payment rates used are based on the American Council on Gift Annuities guidelines.
Though approved only a few months ago, the first individual already has signed on. Retired pathologist Margaret Waid Hoffman, a 1948 graduate of the Medical School, is the U-Ms first donor to take advantage of charitable annuity giving. Hoffmans annuity gives her a lifetime payout at a rate based on her age. In addition to the fixed annual income, she will be entitled to an income tax deduction this year. She has designated that the U-M use the remaining funds at the end of the annuity contract for neuropathology research and education in the Department of Pathology.
For more information, please contact the Office of Development, (734) 615.2022 or email@example.com. Visit the Web at www.giving.umich.edu for information on gift-making and news on the impact of private giving.