Creative Ways to Give

Charitable Gift Annuity

• A charitable gift annuity is a simple contract between you and John Brown University.
• In exchange for your irrevocable gift of cash, securities, or other assets, John Brown University agrees to pay one or two annuitants you name a fixed sum each year for life. The payments are guaranteed by the general resources of John Brown University.
• A charitable gift annuity provides lifetime income to the donor or donors, along with an immediate income tax deduction. The remainder goes to the University at the annuitant's death. The interest rate is based on the age of the donor, set at the time of the gift. The annuity pays higher rates for older donors. Two life charitable gift annuities are available.
• Click here for a charitable gift annuity calculator.
• In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property, you will pay capital gains tax on only part of the appreciation. In addition if you name yourself an annuitant, the capital gains tax will be spread out over many years rather than coming due in the year of your gift.
• Payments may be made annually, semiannually, quarterly, or monthly, depending upon the size of the gift.
  • You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income. Gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
  • Your estate may enjoy reduced probate costs and estate taxes.
  • You will provide generous support of John Brown University.

Deferred Gift Annuity

• In exchange for your irrevocable gift of cash, securities, or other assets, John Brown University agrees to pay one or two annuitants you name a fixed sum each year for life, with payments starting at least one year after your gift. The older your designated annuitants are at the time of the gift and the longer payments are deferred, the greater the fixed income John Brown University can agree to pay.
• Payments are scheduled for a future date and allow a higher rate of return and increased tax deductions. Deferred gift annuities are popular with those no longer eligible for IRA deductions as a retirement planning alternative.