How does a gift annuity work? In return for your contribution, and pursuant to a signed agreement, the UT Foundation agrees to make fixed payments for life. Payments will be made quarterly—in March, June, September and December.

Who may receive payments from the annuity? Payments may be made to up to two beneficiaries (also called annuitants). While typically donors name themselves, an annuity also can be established to benefit others such as a spouse, parent or sibling.

What will the amount of my payments be? Annuity payments will be determined at the time the annuity is established and will be based on the age(s) of the annuitant(s) at that time. The University of Tennessee is committed to following the recommended annuity rates as directed by the American Council on Gift Annuities (ACGA).

How does a gift annuity benefit the University of Tennessee at Martin? At the end of the annuitant’s life (or, with a two-life annuity, the end of both lives), the remainder of the principal transferred will be used to support the work of the university.

Are there tax advantages with a gift annuity? Yes. You receive a charitable deduction in the year of the gift. In addition, a portion of the annuity payments will be tax-free, representing a return of the principal contributed.

Can I contribute securities for a gift annuity? Yes. In fact, contributing highly appreciated securities, which you have held for more than 12 months, offers additional tax savings. You pay no tax on the capital gain attributable to the charitable gift portion of the contribution. If you are an annuitant, the gain attributable to the annuity payments does not need to be recognized in the year of the gift but can be apportioned according to your life expectancy.

How can I request more information? We can provide you with an analysis showing the payments and tax benefits for your situation. You also may complete and submit the form online at www.plannedgiving.tennessee.edu or call 731-881-7620 for more information.