A charitable gift annuity is a simple agreement that lets you support UC Berkeley while receiving fixed payments for life. It’s a popular choice for donors who want the satisfaction of making a meaningful gift today alongside the security of dependable income.
A gift that gives back
With a charitable gift annuity, you make a gift to UC Berkeley, and in return, Berkeley agrees to pay you, or you and another person you designate, a fixed amount each year for life. Your payment rate is set at the time of your gift and never changes, regardless of market conditions. When the annuity ends, the remaining balance supports the Berkeley programs you care about most.
A charitable gift annuity can also offer meaningful tax advantages. You may qualify for a federal income tax charitable deduction in the year you set up the annuity, and a portion of each payment may be tax-free for a number of years. If you fund your gift with appreciated securities, you can often reduce or defer capital gains taxes as well.
Reasons to consider a charitable gift annuity
- Reliable lifetime income. Receive fixed payments that won’t fluctuate with the markets, giving you a dependable supplement to retirement income.
- Attractive payment rates. Rates are based on your age at the time of the gift; the older you are when you begin payments, the higher your rate.
- Income for one or two people. Payments can be made to you alone or to you and a spouse, partner, or another loved one.
- Meaningful tax benefits. Receive a federal income tax charitable deduction the year you create the annuity, and enjoy partially tax-free payments for a portion of your life expectancy.
- Flexible funding. Use cash, appreciated securities, or, if you’re 70½ or older, a one-time IRA election to fund your annuity.
Do You Have Questions?
How to set up a charitable gift annuity
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1
Request a personalized illustration
Our team will model payment rates and tax benefits based on your age and gift amount.
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2
Decide how to fund your gift
Common options include cash, appreciated securities, or a one-time IRA election if you’re 70½ or older.
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3
Sign the gift annuity agreement
We’ll prepare the paperwork and walk you through every step of the process.
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4
Begin receiving payments
Payments are issued on the schedule you select, with quarterly payments being the most common.