Charitable Gift Annuities
Life income gifts to the Darden School of Business allow you to provide future support to Darden while producing payments for you and/or your loved ones and tax deductions and benefits for you or your estate. Payments can be fixed or variable and current or deferred, depending on your needs. You can create a life income gift during your lifetime or as part of your estate plan.
You may define the purposes for which your gift will be used—unrestricted support that meets greatest needs or another purpose you select (financial aid or faculty support, for example). The Darden School Foundation will work with you to document your provisions and be certain Darden can carry out your wishes as you intend.
Life Income Gift Benefits
- Provide supplemental income to you and/or your loved ones
- Provide a current income or estate tax deduction
- Convert low-dividend-yielding stock to higher fixed or variable income
- Convert real estate or other illiquid assets into a reliable income stream
- Reduce exposure to market volatility
If you are at least 70 1/2 years old, you may use an IRA-qualified charitable distribution to create a charitable gift annuity or charitable remainder trust.
A Charitable Gift Annuity (CGA) is created with a simple contract. In exchange for your gift of cash or stock* of $5,000 or more, the University of Virginia Foundation pays you and/or your loved one a fixed annuity for life. At the end of the contract term, the remainder will be used by Darden for the purposes you specify.
Rates range from 4.5% to 9.7% and depend on the age(s) of the annuitant(s). Each annuitant must be at least 55 years old when payments begin. A portion of each payment will be tax-free income. If you fund your CGA with appreciated stock, you will avoid a portion of the capital gain and defer the rest. You can select the CGA that works best for you:
- An immediate payment CGA begins making payments immediately.
- A deferred CGA begins making payments on a future date you select. Deferring your start date can yield a higher rate and larger charitable deduction. A flexible deferred CGA allows you to select a range of future dates on which your payments can begin.
The UVA Foundation is able to offer CGAs to residents of most, but not all, states. Please contact the Darden School Foundation to request information and calculations.
A Charitable Remainder Trust (CRT) is created with a gift of stock, cash, or real estate and pays you and/or your loved ones income for life or for a specified number of years you select. Darden will use the remainder for your specified purposes at the end of the trust term.
Your payments can be fixed or variable:
- A charitable remainder annuity trust (CRAT) provides fixed payments based on a percentage of the trust’s initial value.
- A charitable remainder unitrust (CRUT) provides variable payments based on a percentage of the trust’s floating annual value.
With a minimum contribution of $50,000, you can name UVA to serve as your trustee, and you may select a percentage payout for your trust ranging from 5% to 7%. UVA offers a range of investment options for your trust, including the ability to invest a CRUT alongside UVA’s endowment.
*If you are at least 70 1/2 years old, you may use an IRA-qualified charitable distribution to create a charitable gift annuity or charitable remainder trust. There are some nuances we will be happy to discuss with you. More information is available on our Qualified Charitable Distributions information sheet.
The Cornerstone Society recognizes those who are honoring the University’s future through planned gifts, including bequests, beneficiary designations, charitable gift annuities, and charitable trusts.
The University of Virginia Darden School Foundation does not provide legal or tax advice. We recommend that you seek your own legal and tax advice in connection with gift and planning matters. To ensure compliance with specific IRS requirements, we disclose to you that this communication (including any attachments) is not intended or written to be used and cannot be used for the purpose of avoiding tax-related penalties.