Make a Gift That Pays You Income
There's a way for you to support the University of Kentucky and feel confident that you have dependable income in your retirement years. You can do this with a charitable gift annuity.
This type of donation can provide you with regular payments and further UK’s work to continue to improve people's lives through excellence in education, research and creative work, service and health care. You can also qualify for a variety of tax benefits depending on how you fund your gift.
If you fund your gift annuity with cash or appreciated property, you qualify for a federal income tax deduction if you itemize. In addition, you can minimize capital gains taxes when you fund your gift with appreciated property.
And now, you can fund your gift using your IRA assets. If you are 70½ and older, you can make a one-time election of up to $53,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE Guide Plan for Retirement with a Deferred Gift Annuity.
An Example of How It Works
Jessica Bayne (Violetta) and Michael Preacely (Giorgio) perform "Pura siccome un angelo," from La Traviata, UK Opera Theatre (2017)
Mary, 70, loves attending UK Opera Theatre performances. She wants to support the program by making a gift to the College of Fine Arts but also wants to ensure she has reliable income during her retirement years. She consulted with the UK Philanthropy team and decided to establish a $50,000 charitable gift annuity. Although she could use cash, she decide to fund the gift annuity with appreciated stock.
Based on her age, Mary will receive a payment rate of 6.3%, which means that she will receive $3,150 each year for the remainder of her life. She's also eligible for a federal income tax charitable deduction of $18,756* when she itemizes. Finally, she knows that after her lifetime, the remaining amount will be used to support future UK students.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.