Your path to this gift:
You're considering a lifetime gift in partnership with USP> Your planning objective is increased income > Your investment preference is the stability of fixed income payments
Of all the gifts that pay you back, the gift annuity may be the simplest and most affordable. Here are some of the features that make the gift annuity our most popular life-income gift:
You contribute your gift directly to USP -- not to a trust -- and we agree to pay you a fixed amount for life. You know upfront how much you will receive in return for your gift.
A charitable gift annuity is easy to create. The gift agreement is a simple contract between USP and you. Your payments become one of our general obligations, backed by our corporate assets, not just the principal of your gift. We commit to making your payments.
Gift annuities generally pay a slightly higher income rate than other life-income gifts.
A charitable gift annuity may be funded with a gift of $5,000 or more. Gift annuities bring the benefits of a life-income gift into reach for many donors.
You will receive a charitable income tax deduction when you create a gift annuity, based on the fair market value of the assets you contributed, minus the present value of the life-income interest you retained.
If you fund your charitable gift annuity with appreciated securities, no upfront capital gains tax is payable. You can contribute appreciated but low-yielding assets and put the entire amount of your gift to work earning income for you. Only a portion of your capital gain will be reportable, and the tax will be spread out over your annuity payments.
A third tax benefit of a gift annuity is the treatment of your income payments: part of each payment will be treated as the tax-free return of principal. This increases the effective yield of a gift annuity and is not available on other types of life-income gifts.
(Note: The IRS provides that the capital gain and tax-free income benefits are in effect during your life expectancy -- if you live longer, the entire annuity payment will be taxed to you as ordinary income.)
Your gift annuity can make payments to a maximum of two people.
After the death of the last annuitant, the balance remaining in your gift annuity will be available for the use you designated when you created your gift annuity.
University of the Sciences in Philadelphia
Development Office 600 South 43rd Street Philadelphia, PA 19104
(888) 857-6264 | Fax: (215) 895-1177
E-mail: giving@usip.edu
