Gifts
A Charitable Gift Annuity (CGA) is a simple contract between the donor or donors and the University. Payments are fixed for life and are guaranteed by the assets of the University. Payments are partially tax-free and may be made in annual, semiannual, quarterly or monthly installments. Donors receive a current federal income tax deduction for part of the amount transferred.
A Deferred Gift Annuity (DGA) allows a donor to defer receiving payments into the future year. The annuity's payments – made to the donors or any one or two people chosen by the donors – are deferred until a specified time in the future, at least one year after the contribution. In exchange for deferring the payments, the recipient's annuity rate is higher than it would be if he/she waited until the target payment date and then funded a conventional gift annuity. Donors may add to the transferred assets as frequently as desired during the deferral period until the annuity begins making payments.
A Charitable Remainder Unitrust (CRUT), like a charitable gift annuity, provides the donor with a sizable income tax deduction during the year in which the gift is made and a partially tax-free income stream. Unlike a CGA, however, the Unitrust offers a fixed percent payment, typically from 5% to 7%, rather than a fixed dollar payment. Thus the trust's payout fluctuates over time, and can, if invested prudently, provide a hedge against inflation. If the trust is funded with appreciated assets, the donor avoids all capital gains on the transfer of the assets to GW.