WHAT IS A CHARITABLE GIFT ANNUITY?
A charitable gift annuity is a simple contract between you and Freed-Hardeman University. In exchange for your irrevocable gift of cash, securities, or other assets, Freed-Hardeman University agrees to pay one or two recipients you name a fixed sum each year for life. The older your designated annuitants are at the time of the gift, the greater the fixed income Freed-Hardeman University can agree to pay. In most cases, part of each payment is tax-free, increasing each payment's value after tax.
Payments may be made annually, semiannually, quarterly, or monthly.
EXAMPLE:
If you transfer $10,000 in cash at age 72 to Freed-Hardeman University in exchange for a $670 annual installment,
BENEFITS INCLUDE:
1) You will qualify for a federal income tax deduction of approximately $4,524. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other 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 this kind over the next five years, subject to the same 50% limitation.
2) Your designated gift recipient will receive fixed installments totaling $670 each year for life. In addition, $377.88 of each year's payments will be tax-free for the first 14.5 years.
3) Your estate may enjoy reduced probate costs and estate taxes.
4) You will provide generous support of Freed-Hardeman University.
*These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift.
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