What is a Charitable Gift Annuity?

Did you know that you can make a gift to support the College of Optometry’s future and receive payments for life in return?

This unique gift, called a charitable gift annuity (CGA), is a simple way to support the college, while securing your retirement years as well.

Here’s how it works:

In exchange for a gift of cash or long-term appreciated stock or bonds, The Ohio State University Foundation promises to pay a fixed amount to one or two beneficiaries for the rest of their lives. When the last beneficiary has passed, the balance of the gift annuity benefits The Ohio State University as specified by you in the agreement.

Why is a charitable gift annuity a good idea?

• Guaranteed fixed lifetime payments at an attractive annuity rate with no stock market risk
• Current income tax charitable deduction
• Possible tax-free income
• Potential estate tax savings
• Ability to direct your gift to the specific purpose or fund of your choice at the college

Special opportunity for those 70½ or older.

You can use your IRA assets to make a one-time election 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 Distribution (RMD).

EXAMPLE

Donors, both age 75, transfer $100,000 in cash to fund a 6.2% charitable gift annuity for their lives. Donors receive $6,200 annually for the rest of their lives and when they both have passed away, Ohio State receives the remainder. Donors are eligible for an income tax charitable deduction of $32,324. The donor has $8,081 in potential tax savings.*

(Rates are subject to change. This example is for illustrative purposes only and based on a 4.6% AFR. Deductions and calculations will vary depending on your personal circumstances and the timing of your gift.)

*Assuming a combined federal and state income tax rate of 25%.

This is a win-win for you and the college. 

We would enjoy discussing the options, answering your questions and creating a personalized illustration of your CGA benefits. Contact Shawn Gilbert at gilbert.351@osu.edu or 614-247-6426.

Due to state regulations, Ohio State cannot offer charitable gift annuities in all states. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance. The Ohio State University Foundation does not provide legal, tax or financial advice to its donors or their advisors. We encourage you to review your gift plans with your legal and tax advisor to determine the best plan for you.