News and Progress

Gift planning tips

A personal economic stimulus plan: the charitable gift annuity

Oct. 28, 2009

People are asking the most fundamental of questions in today’s economic climate — questions such as, “Where is it safe to put my money?” or “Is it possible to find a secure place that can guarantee income?” Donors have a secure alternative available to them through a charitable gift annuity to Mizzou.

“A charitable gift annuity lets a donor make a deferred gift that allows the donor to receive income during their lifetime,” says Wayne Chipman, senior executive director for advancement with the MU Office of Gift Planning and Endowments. By donating through a gift annuity, you can accomplish two things: (1) secure an annuity payment for one or two lifetimes for yourself or yourself and another individual and (2) make a gift to Mizzou.

Many donors between ages 70 and 90 frequently compare their CD rate with the charitable gift  annuity rate, Chipman adds. Annuity rates are higher for older annuitants and lower for younger annuitants. At Mizzou, you must be 60 years of age or older to receive charitable gift annuity payments. Rates for a single-life gift annuity begin at 5.4 percent. The highest possible rate is 10.5 percent for a single-life gift annuity.

Gift annuities also provide a secure stream of income for the lifetime of the donor or donors. A charitable gift annuity is backed by the University of Missouri. The University Treasurer’s Office invests the gift annuities following guidelines set by the American Council on Gift Annuities so that obligations to annuitants can be met while securing residual benefit to the university as the donors intended.

Chipman says the attractive rates for annuity payouts and the fixed, secure nature of those payments may draw many donors to gift annuities in 2009.