Charitable Gift Annuity
In exchange for a donor's irrevocable gift of money or property, the UNA Foundation will pay donor (and survivor if appropriate) a fixed amount (depending upon the amount of gift and the age of donor and/or survivor) each year for life. A portion of the income received is tax-free. Reduced capital gains when long-term appreciated property is used to fund annuity. Also reduced estate tax liability.
Example: Donor is age 65 and transfers $100,000 to the UNA Foundation in exchange for a gift annuity. He/she will receive annual payments of $6,500 (6.5%). About $3,200 of income will be tax-free. Donor will receive a tax deduction of $33,000 the year the gift is made and estate taxes are also avoided.
Deferred Payment Gift Annuity
Donor transfers cash or long-term appreciate assets specifying that guaranteed annual income benefits begin on a specific future date.
Example: Donor, age 58, plans to retire in 7 years at age 65. Donor contributes $100,000 to the UNA Foundation in exchange for a deferred payment gift annuity which will begin paying annual income of $9,800 at age 65. Approximately $7,880 of the income will be taxable, the remaining $1,920 is tax-free. Donor can claim $65,000 tax deduction the year the gift is made.