We face many challenges today — from geopolitical instability to climate concerns to cybersecurity. It may seem like a time to circle the wagons rather than discuss your long-term philanthropic goals. But if you choose the right option, planned giving can provide a powerful way for you to create a lasting impact and help ensure that WashU has the resources to continue to navigate these ever-changing obstacles. For example, life income plans allow you to provide for your personal financial needs, or the needs of your loved ones, while making a significant gift to WashU. One great option is a Charitable Gift Annuity (CGA).

A CGA is a life income plan that enables you to receive lifetime payments and reap significant tax benefits while retaining financial security. It is a simple contract between you and the university that provides fixed payments for your lifetime and/or that of your spouse or other beneficiary in exchange for your gift of cash or appreciated securities. Your gift annuity can be funded with cash or publicly traded securities of $25,000 or more. In return, you and/or your spouse or designee receive guaranteed lifetime fixed payments — a portion of which is usually tax-free.

Your fixed payment rate is based on the age(s) of the payment recipient(s) at the time the gift is made. When the gift annuity ends, the remaining assets are used by the university to support the school or program of your choice.

There are several benefits of a charitable gift annuity:

  • Life-income stream that is typically paid out quarterly to you and (if you choose) another person
  • Attractive and predictable fixed payment rate
  • Charitable income tax deduction in the year your gift is made
  • Capital gains tax savings if funded with long-term appreciated securities (securities you have owned for more than 12 months)
  • A portion of your annuity payment is usually tax-free
  • Estate tax benefits
  • Fulfilling your charitable intentions by providing a significant gift to WashU

Establishing a CGA is simple. The planned giving staff will provide a personalized illustration and a detailed explanation of how the gift annuity works based on the age(s) of the beneficiary or beneficiaries; the type of asset used to fund the gift annuity; and the estimated value of your gift if using stock, including the approximate value of the stock and your approximate cost basis (which is usually the amount you paid for the stock).

So, rather than retreating inward during uncertain times, it may be the right moment to blaze your trail and leave a lasting impact on an institution that has made an impact on you.

*Note: In states where CGAs are not currently offered by WashU, a charitable remainder trust may be a good alternative life income option, and the planned giving staff can assist you with that as well.

The WashU Office of Planned Giving is here to help you achieve your financial and philanthropic goals. To learn more about CGAs or other estate planning tools, contact the planned giving office at 800-835-3503 or plannedgiving@wustl.edu.

If you have already included WashU in your plans, thank you! We invite you to share that information with us so we can ensure your intentions are properly documented and that your wishes will be honored.