The university’s Office of Gift Planning is now offering its first installment of “Giving Tips” in PDX Ducks. These tips are designed to better inform you of opportunities to support the university and illustrate available incentives provided by the Internal Revenue Service.

Donors can increase their cash flow today while providing for the future of the University of Oregon…through a charitable gift annuity.

The University of Oregon Foundation offers charitable gift annuities that provide lifetime annuity payments at a rate much higher than savings accounts. They also entitle donors to an income tax charitable deduction.

For example, an individual is 75 years old and contributes $50,000 (currently held in a certificate of deposit). That person would receive annual payments of $3,550 (7.1 percent of the contribution) over their lifetime. A majority of the annual payment will be tax-free. Furthermore, funding a gift annuity this month enables individuals to take an income tax charitable deduction of $22,163.50.

Precise annuity payments are based on a donor’s age at the time of the contribution. If an individual donor were 80, 85, or 90 years of age, they would receive annual payments of 8 percent, 9.5 percent, or 11 percent, respectively. Gift annuity payout rates also are based on two lives, such as those of a husband and wife, although rates would be slightly less.

The University of Oregon Foundation accepts gift annuity contributions for minimum gifts of $25,000.

For questions about this article and other creative ways to save taxes and increase cash flow while supporting the University of Oregon, please contact Hal Abrams, J.D., LL.M., Director of Gift Planning at (541) 346-6084.