Release date: Feb.3, 2006
Gift Annuities are a Win-Win for Donors, Charity
Like clothing, one size does not fit all when it comes to charitable giving. While some may prefer lump-sum donations, others need more options.
That’s why the charitable gift annuity can be a perfect choice for donors to Wayland Baptist University, regardless of their financial status.
The gift annuity allows donors to transfer cash, stock or other assets to the university. The gift then becomes an endowment that yields interest, with a set amount paid to the donor until his or her death. At that time, the full gift goes to the university to use as the donor specifies.
While the donor is living, however, he or she receives a tax break and still retains some income for life, with payments set up monthly, quarterly, semi-annually or annually. Payments can also be deferred until a later date if the donor wishes, such as those who may want to supplement retirement income when they reach that age.
The scenario made perfect sense to Ruby Mason of San Angelo, a Wayland graduate and retired nurse anesthetist.
“I got to thinking about how much I have benefited from my courses at Wayland. They have enabled me to do some things since my retirement that I might not otherwise be capable of, like writing my family history,” Mason said. “The gift annuity was a good way to contribute to Wayland and be able to have some income from it.”
Mason has chosen to have her gift added to the Friendship Baptist Church scholarship for religion students, knowing students in need will make good use of it.
Jean Capp of New Jersey, a former Hereford resident, also found the annuity option positive. Familiar with annuities after administering a few for her late husband, she felt that was a great way to give to Wayland and retain a benefit during her lifetime. She also is putting her gift to good use.
"I asked that my gift be used for those going into the ministry... to further the cause of Christ in the panhandle. I wanted to do what I could to further the cause of Christ through education at Wayland,” Capp said.
The options are varied for gift annuities, depending on the particular needs of the donor. Gift annuities may be set up in three ways: single life beneficiary (one person receiving checks); two lives in succession (check goes to another beneficiary if initial person dies); or joint and survivor (two persons split check then survivor receives it if one dies).
According to the American Council on Gift Annuities, a tuition annuity may be set up to defer the payments for a child to cover college tuition while in school. Arrangements are made for how long the annuity benefits are paid. A flexible gift annuity allows annuitants to postpone the beginning of payments until they choose, without having to specify in the original paperwork.