Giving

A gift annuity is the simplest method of receiving income payments from a major gift to charity.  Baldwin Wallace University offers gift annuities through its self-administered program and has no associated fees of any kind.

In order to obtain a gift annuity, a donor completes the following steps:  A gift annuity application is signed Cash or property is transferred to Baldwin Wallace University

Information obtained from the donor provides the basis for the annuity contract.  Essentially, that information is the name or names of the annuitants and their date(s) of birth. 

A gift annuity is designed to provide a payment of 50% of the initial value of the gift.  One can expect to receive, as income, about 50% of the value of the gift paid over the donor’s life expectancy. 

There are additional financial benefits to a gift annuity.  First, a donor receives an income tax deduction for a portion of the donated value.  In the example below, the tax deduction would be about $31.280.  Also, if the gift consisted of appreciated property such as stock, a portion of the tax on the gain is eliminated.  Finally, part of the income payment received by the donor is tax-free.

For example:
 

AGE	RATE	GIFT	CHARITABLE DEDUCTION	ANNUAL FIXED INCOME FOR LIFE
68	5.60%	$100,000	$33,619	$5,600*

                * Contains some tax-free income for 17.5 years.

                (Effective 07/01/2011)

To calculate how a gift annuity can help supplement your income, try our online calculation software, GiftCalcs.

For additional information about gift annuities, please contact one of our staff at (440) 826-2136.  Thank you.

Tom Konkoly          tkonkoly@bw.edu
Mike Walczak         mwalczak@bw.edu
Marylou Hunter      mhunter@bw.edu