The Benefits of Planning a Gift
When Union College President Dr. John Wagner learned about charitable gift annuities a number of years ago, he told himself that if the Lord ever blessed him and his wife, Dr. Lilya Wagner, with enough money they would set one up. So when John and Lilya received an inheritance last month, that is exactly what they did - they set up a charitable gift annuity with Union College.
John understood the basics of how a charitable gift annuity worked, but about a year ago his curiosity compelled him to start asking the Union College development staff questions about his specific situation. Questions like: What would a gift annuity payout rate be for him and his wife; Could they delay receiving payments; and what would be their tax benefits?
The development staff was more than happy to answer his questions and to provide illustrations showing him all the benefits. The Lord hadn't blessed John and Lilya with enough money yet, but they determined in their hearts what they would do if and when the Lord did bless them.
That blessing came at a very sad time for John and Lilya because it came in the form of an inheritance from his mother's estate. Because of all the research John had done a year earlier, the decision to proceed with a charitable gift annuity was easy.
"Mom would have been pleased to know what we did with the money," John says. "The charitable gift annuity was an excellent way to preserve the money that she worked so hard for."
In fact, the decision was so easy that John simply walked into the development office and said, "OK, I'm ready to do the annuity." Then he signed over his inheritance check to Union College.
A Tax-Smart Way to Give
While doing his research on charitable gift annuities, John's curiosity also led him to ask about another planned giving technique, the IRA charitable rollover. John wanted to know if the IRA charitable rollover was still available and if it would make sense for him. The development staff was happy to explain how this type of gift works and encouraged John to consult with his tax preparer to determine what his specific tax benefits would be.
After consulting with his tax advisor, John learned that satisfying his IRA's annual required minimum distribution with a charitable rollover directly to Union College would provide him a significant tax advantage. So, with some more help from the development office, John was able to make the transfer from his IRA. "It is only good stewardship to figure out the best way to make a gift," John says. "I'd rather give my money to Union College than to Uncle Sam."
When asked what advice he would give to others who have been thinking about creating a charitable gift annuity or making an IRA charitable distribution, John quickly says, "Give it to Union! Gifts are a way for people to get actively involved on campus."
John expresses his deep appreciation for Union's supporters. He believes they are a conduit for God and that every gift Union College receives is a blessing from the Lord.
If you would like to take John's advice and talk with someone about setting up a charitable gift annuity or making an IRA charitable distribution to Union College, please call Ken Farrow at 402-486-2600, Ext. 2200 or email him at firstname.lastname@example.org. Ken Farrow will be just as happy to help you as he was in helping John.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.