The University of Texas Foundation
Charitable Gift Annuities
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Perhaps you’d like to make a major gift, yet retain an income stream. An Ideal solution may be a charitable gift annuity. It’s a simple contract between you and the UT Foundation for the benefit of one of the campuses of The University of Texas System. In exchange for your gift of cash, stocks or bonds, the UT Foundation will pay beneficiaries of your choice a fixed sum every year for the lifetime of the beneficiaries.

The payments received from a gift annuity are based on the age of the income beneficiaries. The older they are, the higher the income payments will be.

You benefit from:
• the personal satisfaction of giving generously to your area of interest within The University of Texas System.
• an itemized federal income-tax deduction in the year you establish the annuity.
• a fixed annual income for life, guaranteed by the UT Foundation.
• reduced assets in your estate, which could decrease estate taxes for your heirs.
• potential capital-gains savings if you fund the gift annuity with appreciated assets. If you are also one of the beneficiaries, capital-gains taxes are spread out over your lifetime.

 

A Houston couple wanted to establish an endowed academic position at UT Austin in the Department of Accounting. Although they wanted to ensure that the faculty position was established, they did not feel comfortable giving away a large sum at that point in their lives. To accomplish their dream, they entered into an annuity contract with the Foundation. They transferred $500,000 to the Foundation in return for the Foundation’s promise to pay them $38,204 annually in quarterly installments for as long as either of them lived. This gift occasioned an income-tax deduction when the gift was made. The husband passed away several years ago, but his wife continues to receive her quarterly distributions.

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