SPU retains these funds in sufficient amounts to guarantee payments. In addition, the donor receives an immediate charitable deduction, the size of which is established by the U.S. Treasury. Up to half of each payment is tax-free according to IRS rulings. This means that donors in lower tax brackets often earn a higher after-tax income from gift annuities than higher yielding, but fully taxable investments. Payments can be diverted to any beneficiary during the donor's life.
Some donors use annuities as a creative method of funding a loved one's education.
Contact the SPU Office of Planned Giving to discuss your options. Carlton P., Seattle Pacific alumnus of 1941, wants some extra cash for living expenses, but his assets are tied up in a rental home he purchased 20 years ago. He decides it's a good time to make the gift he'd been planning for SPU's missions program. He can even designate another beneficiary to receive lifetime payments, although this will affect the percentage of annual return. The University works closely with both Carlton and his family to assure that everyone is satisfied with the agreement.