A charitable gift annuity is a contract between you and The University of North Carolina at Chapel Hill Foundation, Inc. This contract allows you to make a generous gift to the University, while providing a guaranteed income stream to you, or to you and another person for life. At the death of the final income beneficiary, the residual passes to Carolina to be used for the purpose you designate.
In addition to the satisfaction you’ll feel in providing for the University’s future, there are numerous financial and tax benefits:
- Guaranteed annual income — in most cases, part of each annuity payment is a tax free return of principal, increasing each payment’s after tax value.
- Immediate income tax charitable deduction for a portion of the transfer that represents a future gift to the University (often 30 to 50 percent of the value of the annuity).
- Reduction of capital gains tax, if funded with appreciated assets.
- Removal of the asset from your estate for federal estate tax and probate fee calculations.