Giving to UMF
Getting Older Has Its Rewards – Establishing A Gift Annuity
A gift annuity is easy to establish. A simple one-page gift annuity agreement is written and signed by the University of Maine System, and a Disclosure Statement is signed by the donor. A gift annuity proposal can be prepared anytime for a potential donor to see how they and the University would benefit. Click on “Detailed Information” below for more detailed information on Charitable Gift Annuities, to see another sample gift annuity, and to view a sample Donor Proposal package, Gift Annuity Agreement and Disclosure Statement.
For example, consider the way gift annuity rates increase with age. A 70-year-old person who donates $10,000 to the UMaine System Charitable Gift Annuity Program* can receive $610 every year from the annuity for the rest of her or his life. However, if that same person were to obtain a gift annuity at age 85, the annuity rates would jump to 8.9\%, and she or he would get $890 each year. So, you see, aging has a silver lining.
Many donors also appreciate the stability of gift annuity payments. Once established, the rates are “locked in,” and annuitants can count on receiving the same amount every year. Payments may be received annually or quarterly.
Another benefit of a charitable gift annuity relates to taxes. Not only does one receive an income tax charitable deduction when obtaining a gift annuity if they itemize, there is also the possibility of income that is partially tax-free.
Perhaps the most enjoyable part of a gift annuity is the ability to give without endangering retirement income. In fact, just the opposite is often true. Sometimes donors actually increase their retirement income by obtaining a gift annuity with low-yielding assets, such as certain stocks or even cash.
As an example, Marietta Lowe Fletcher, University of Maine at Farmington Class of 1939, says, “I found this program to be of great benefit. I had some money in a CD which was paying very little interest. Now I am realizing 9.5\%, fixed for life; I can count on it to plan my finances. And the best part is I am able to donate a major gift to my alma mater, something I never would have been able to do if all the University could accept were cash gifts. It was a welcomed eye-opener for me, and it saved the day.”
Gifts of Whole-Life Insurance Policies are another way for a donor to make a major gift. Whether in a new or existing policy, naming UMF as the sole beneficiary or owner of the policy can translate into a gift. A call to the Development Office in the Ferro Alumni Center will answer any questions you may have regarding gifts of life insurance.