A charitable gift annuity is a contract between you and The University of North Carolina at Chapel Hill Foundation, Inc. This contract allows you to make a generous gift to the Foundation, while providing a guaranteed income stream to you or to you and another person for life. At the death of the final income beneficiary, the residual can pass to the Medical Foundation to be used for the purpose you designate.
Benefits
In addition to the satisfaction you’ll feel for providing for the future of UNC Medicine, there are financial and tax benefits:
- Guaranteed income for life or a period of years paid to you and/or another beneficiary.
- Immediate income tax charitable deduction for the portion of the amount that represents a gift to the Medical Foundation.
- Reduction of capital gains tax if funded with appreciated assets.
- Removal of the asset from your estate for federal estate tax and probate fee calculations.
- With a deferred gift annuity, you also have the ability to defer the income until a later date such as retirement, while claiming an immediate income tax deduction. Like the current charitable gift annuity, when funded with appreciated assets, a deferred gift annuity enables a portion of the annuity enables a portion of the appreciation to escape capital gains taxes entirely.