Gift Annuities offer wonderful way to
help Union and increase your income

There's an old saying that "It is better to give than to receive." By using a Charitable Gift Annuity through Union University, it's possible to do both at the same time!

A Charitable Gift Annuity (CGA) is a simple agreement by which:a person or couple makes a gift to Union, and Union commits to pay the donor a lifetime income. In addition to the guaranteed lifetime income, the CGA can also:produce some attractive tax benefits which save money for the donor.

For example, Sam Jones is 85 years old and has some stock worth $100,000. He would like to make a gift to Union, but he continues to need the annual income he receives from the stock's dividend. How can he accomplish both objectives?

With a gift annuity, Sam can give the $100,000 in stock to Union and receive an annual income of $10,500 (or 10.5 percent), guaranteed for his lifetime. Even better a substantial portion of that annual amount will be paid to him as tax-free income. In addition, he will receive a charitable deduction of $52,997, which he can use to save on his income tax (spread up to five tax years, if appropriate). As a result, Sam has:

  • increased his annual income above what the stock d~idend was producing, without incurring capital gains taxes on the sale of the stock
  • received a significant charitable deduction to save money on taxes
  • made a wonderful gift to Union.
With a CGA, the amount of annual income is -based on the age of the donor. A single life annuity, like Sam's, pays a larger income than that involving a couple. Yet even for couples, a CGA can be very attractive.

Suppose Bob and Mary Jackson have the same $100,000 in stock. Bob is age 70, while Mary is 68. While they are currently earning less than 3 percent on the dividend, with a CGA they will receive an annual-income of $6,800 (or 6.8 percent), guaranteed for both lifetimes. In addition, they will receive a charitable deduction of $31,150. They accomplish their dream of establishing an endowment fund in their names at Union.

Gift Annuity Rates
Single Life

Age

60
65
66
67
68
69
70
71
72
73
74
75
76
77

 Rate

6.7%
7.0%
7.1%
7.2%
7.3%
7.4%
7.5%
7.6%
7.7%
7.8%
8.0%
8.2%
8.3%
8.5%
Age

78
79
80
81
82
83
84
85
86
87
88
89
90
91

 Rate

8.7%
9.0%
9.2%
9.4%
9.6%
9.9%
10.2%
10.5%
10.8%
11.1%
11.4%
11.7%
12.0%
8.5%

Unlike some planned gifts, a CGA is simple to create, since it is essentially a one-page contract between Union and the donor. The annual income is guaranteed by the assets of the university. The amount of the charitable deduction and tax-free income is based on IRS guidelines. And a gift annuity can be created with a gift of as little as: $10,000.

Would you like more information about how you might benefit from a gift annuity while also helping Union? Call Paul Veazey, Director of Planned Giving at Union, 1-800-338-6644 (in Jackson, call 901-661-5217), and he'll be happy to send you additional information, with no obligation. Or you can write him care of: Office of Planned Giving, Union University, 1050 Union University Drive, Jackson, TN 38305.