Charitable Gift Annuity

A Charitable Gift Annuity is a contract between the University of Idaho Foundation, Inc. and one or two individuals (most often a married couple). In exchange for a gift of cash or other property, the Foundation promises to make periodic payments to the donors (or other persons identified by them) for as long as they live. Part of each payment is taxable as ordinary income, but part is treated as return on principal and is tax-free. If the income recipients live beyond their actuarial life expectancy, all later annuity payments will be treated as ordinary income.

The payout rates for charitable gift annuities are established by a national association and adhered to by all reputable charities, including the University of Idaho. These rates can be very attractive, especially for people in their 70s and 80s or older. They are simple to establish and are backed by the full faith and credit of the University of Idaho Foundation, Inc., currently with assets over $200 million.