AVENUES FOR giving
- University of Hawaiʻi Foundation
2444 Dole Street
Bachman Hall 105
Honolulu, HI 96822 - Phone: (808) 956-8849
Toll Free: 1 (866) 846-4262
Fax: 808-956-5115 - Send email >>
Planned Gifts
Charitable Gift Annuity
Jeanne Henry is a graduate of the University of Hawaiʻi and a wonderful supporter of the university. She is also a very concerned American. Having grown up during the Great Depression, Jeanne developed certain attitudes toward money and savings. As a result, she saved consistently and conservatively during her entire life. Despite her financial planner's suggestions, Jeanne put very little of her savings into the stock market, because she was nervous about the volatile nature of stocks. Instead, Jeanne put her money into CDs and bank savings accounts.
However, decreasing interest rates have caused Jeanne's CD and savings account returns to dwindle. Currently, Jeanne is earning a mere 1-3% on her retirement savings. While happy that she preserved the principal of her accounts, Jeanne is displeased that her yearly retirement income has dropped off significantly. She wants to increase her income substantially but does not want to expose herself to any market risk.
How can Jeanne increase her return on investment without exposing her to fluctuations in the stock markets?
Jeanne should consider using some of her retirement savings to fund a charitable gift annuity (CGA). Based upon Jeanne’s age, Jeanne would receive an 8.0% payout. This increase would almost be a 400% increase from her current return! Moreover, Jeanne currently pays ordinary income tax on all earnings from her savings accounts. However, if she funded a CGA, she would pay ordinary income tax on about 35% of the payout and the remaining 65% would not be subject to any tax whatsoever.
Jeanne loves the increase in her income, the tax-free portion of each payout and the certainty of a fixed payment each year. Thus, she transferred about 20% of her retirement savings in exchange for an 8.0% CGA. In the end, Jeanne accomplished all of her goals while still adhering to her deeply rooted beliefs regarding savings, safety, and money.
For more information on charitable gift annuities and annuity rates, please email giftplanning@uhf.hawaii.edu or contact Lani Starkey at 808-956-8034. We are happy to provide you with a complimentary charitable gift annuity illustration and proposal personalized for your unique situation and objectives.