Life Income Gifts

Charitable Gift Annuities

When a donor establishes a gift annuity with cash or securities, he or she makes a gift in exchange for UMass’ agreement to pay one or two annuitants a fixed income for life.  The donor receives a partial income tax deduction in the year of the gift that may be carried forward for up to five years.  Payments to the annuitants – which begin immediately – are made quarterly for life, and are backed by the assets of the UMass Foundation.  A portion of the payments may be tax-free.  (A minimum contribution is required.)
When the last annuitant passes away, UMass Lowell uses the remaining funds for the purpose that the donor specified at the time of the gift.

Sample One-Life Rates for a $50,000 Charitable Gift Annuity

Age	70	75	80	85	90+
Rate	5.1%	5.8%	6.8%	7.8%	9.0%
Income	$2,550	$2,900	$3,400	$3,900	$4,500

Deferred Gift Annuities

This option may be of interest for donors as young as age 50 wishing to supplement future income. Payments begin at an agreed-upon future date, and the donor receives:

• A fixed income for life;
• A partial income tax deduction in the year the gift is made, and
• An opportunity to defer capital gains tax.

Charitable Remainer Trusts

Another life income gift arrangement that offers a lifelong income stream and significant tax benefits, charitable remainder trusts can be established through gifts of $100,000 or more.
Benefits Include:

• Support for UMass Lowell;
• Income to the donor or a beneficiary for a specific term of years or for life;
• Favorable capital gains treatment on appreciated assets, and
• A charitable income tax deduction (for a portion of the value) in the year of the gift.

For a personalized proposal or any other information, please contact the UMass Lowell Office of Gift Planning at 877-775-1991 or ogp@uml.edu.