Gift Annuity
The Gift Annuity
For some time now, you've known about the TRU Foundation and the work we do to raise money for student awards. You may have wished to participate in that vital work by supporting the foundation with a generous gift. you may even have considered starting an endowment that will continue giving in your name in perpetuity.
You have savings and investments, but interest rates fluctuate and sometimes your month-to-month income doesn't keep pace with rising prices. What's more, you know that your investments have to last your lifetime.
It's a dilemma, but there is good news: You may be able to make your gift and improve your cash flow at the same time.
A Gift That Gives Back
A gift annuity provides both a future gift to a charity and guaranteed payments for life to the donor. The amount of these payments depends on your age and the size of your contribution, but they will likely be significantly higher than you are receiving from your present investments. In addition a significant portion of the annuity payments will be tax free.
Consider this example
A widow, age 80, makes a $100,000 contribution to a charity. She receives an annuity payment of $10,000 per year. The cost of an annuity that will provide $80,000 over 8 years (her life expectancy) is $50,000. The donor receives a tax receipt for $50,000 in the year of the donation and receives in total $80,000 in annuity payments. Only $30,000 will be included as income for tax purposes over the 8 years.
Your gift to Thompson Rivers University
To arrange your gift annuity, you sign a gift agreement that authorizes the TRU Foundation to use a portion of your contribution to purchase an annuity from a licensed insurance company that pays the guaranteed amount agreed upon between you and the Foundation
The balance of your contribution after purchasing the annuity, will be retained by the Foundation for current use or to accumulate for an endowment, as you direct. In consultation with us, you may also specify which particular program at TRU your gift will support. Gifts which meet minimum requirements may be used to establish endowed funds which continue to provide support for TRU students in perpetuity.
Your gift annuity brings you a special bonus at tax time: a sizeable portion of your payments will be tax-free and you will receive a donation receipt that will result in a tax credit.
A representative of the TRU Foundation will be pleased to explain the gift annuity in greater detail and answer your questions. At your request, we will prepare a personalized illustration showing the annuity and tax consequences from whatever contribution you are considering. We encourage you to review the illustration with your own financial and tax advisors, and when you are ready to proceed, we'll assist you in the arrangements.
The Gift Annuity
It's your opportunity to make a generous gift to Thompson Rivers University and do yourself
a favour at the same time!