A Simple Way to Give
And Receive Fixed Income
A charitable gift annuity is a simple contract between you and the Michigan Tech Fund. In exchange for your irrevocable gift of cash or securities, the Tech Fund contractually agrees to pay a fixed sum each year for life to one or two annuitants named by you. The older your designated annuitants are at the time your gift is made, the greater will be the fixed income that the Tech Fund can agree to pay. Payments are made in quarterly or annual installments.
You may establish a charitable gift annuity with the Michigan Tech Fund with a gift of $10,000 or more. Your annuitants must be at least sixty years of age when payments begin.
There are two types of charitable gift annuities:
Immediate charitable gift annuity—Popular with many of our older donors. An immediate charitable gift annuity begins making payments in the year the annuity is created.
Deferred charitable gift annuity—Works well for younger donors or those who do not have an immediate need for income. A deferred charitable gift annuity is basically the same as an immediate charitable gift annuity, with the exception that you transfer funds and receive an income tax deduction now, but payments to you begin at a future date that is predetermined by you. In exchange for your deferral, you receive a higher interest rate and a higher income tax deduction.
Contact the Office of Gift Planning for more information.
Benefits of Charitable Gift Annuities
- Simplest way to gain fixed income for life
- Immediate tax savings
- Income is partially tax-free
- No immediate capital gains tax on gifts of appreciated assets
- May increase current income by converting low-yield assets
- Residual annuity assets will support the Michigan Tech program of your choice