Charitable Gift Annuity
A charitable gift annuity is a simple contract by which the University of Redlands, in exchange for an irrevocable contribution of cash or securities, promises to pay a fixed amount each year to up to two designated beneficiaries for life. Such payments become a general obligation of the university and are backed by its full assets and reserves. Gift annuity contracts can be thought of as consisting of two parts: one a current tax deductible gift to the University of Redlands and the other the purchase of the right to receive fixed income each year for the life of one or two annuitants.
A gift annuity comes in one of two forms: present or deferred. With a present annuity, annuity payments begin with the first payment period (month, quarter, half-year, or year) after the annuity is purchased. With a deferred annuity, annuity payments begin with the first payment period after a lapse of a predetermined period of time of at least one year.
Depending upon the kind of property used to purchase the gift annuity, a substantial portion of the annual payments may be entirely tax-free for a period of years equal to the actuarial life expectancy of the annuitant or annuitants as of the date of the contribution.
Minimum initial contribution: $10,000.
A Word about Annuity Rates
The university follows the rates published from time to time by the American Council on Gift Annuities, a not-for-profit consortium of charitable organizations.
The currently applicable rates became effective on February 1, 2009.