Charitable Gift Annuity

WHAT IS A CHARITABLE GIFT ANNUITY?

A charitable gift annuity is a simple contract between you and MidAmerica Nazarene University Foundation.

In exchange for your irrevocable gift of cash, securities, or other assets, the Foundation agrees to pay one or two annuitants you name a fixed sum each year for life. The payments are guaranteed by the general resources of MidAmerica Nazarene University Foundation.

The older your designated annuitants are at the time of the gift, the greater the fixed income the Foundation can agree to pay.

In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as an annuitant the capital gains tax will be spread out over many years rather than be all due in the year of your gift.

Payments are usually made in annual, semiannual, or quarterly installments.

BENEFITS INCLUDE:

1) You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.

2) The annuitants you name will receive fixed annual income for life, guaranteed by the general resources of MidAmerica Nazarene University Foundation.

3) If you fund the annuity with an appreciated asset, you will incur tax on only part of the gain. If you name yourself as an annuitant, this tax will be spread out over many years.

4) Your estate may enjoy reduced probate costs and estate taxes.

5) You will provide generous support of MidAmerica Nazarene University.

To receive a proposal based on actuarial calculations contact Dr. Don Eaton at 913-971-3280 or deaton@mnu.edu.

This information is for educational purposes only and should not be considered legal, accounting, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

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