Charitable gift annuities are a simple and popular way to support the University of Minnesota. By creating a gift annuity, you can support the University, receive fixed lifetime income, and save taxes.

How it works

• You make a gift of cash or publicly traded securities.
• The U of M Foundation pays you, or others you select, a fixed amount annually for life.
• The remaining assets support the campus, college, or program of your choice.
• The payout rate that the annuitant receives is based on their age. The U of M Foundation follows the rates suggested by the American Council on Gift Annuities.

*Rates for a one-life charitable gift annuity. Rates for a two-life annuity will be lower.

Benefits

• You receive an income tax deduction for a portion of the gift, subject to applicable limitations.
• In most instances, part of each annuity payment is tax-free.
• You can reduce your capital gains tax if you fund the gift annuity with appreciated securities.

Deferring payments

If you do not need income immediately, consider a deferred payment gift annuity. You can make your gift now but defer payments until a future date. By choosing to defer payments, you can receive a higher payout rate and larger charitable deduction. Our charitable gift annuity donors often choose this option to supplement future retirement income when they need it.

Payout rates for a 60-year-old deferring payments until age:

*Rates for a one-life charitable gift annuity. Rates for two-life annuity will be lower.

Giving from an IRA

If you are 70½ or older, you can now make a one-time qualified charitable distribution of up to $54,000 from your IRA to fund a charitable gift annuity. (Special rules apply.)

For questions, or to receive a personalized illustration, please contact the Office of Gift Planning at 612-624-3333 or [email protected].

Please note that the U of M Foundation does not offer gift annuities in Hawaii. Regulations in other states vary, so please contact us to determine eligibility.