As 2011 comes to a close, please be aware of two charitable giving opportunities that end on December 31, 2011.


Rates Dropping on the Charitable Gift Annuity (CGA) - Act before 12/31!

With the rates dropping on charitable gift annuities after January 1, 2012, it is advantageous to fund a CGA before December 31. One or two individuals may contribute $10,000 or more to create a charitable gift annuity. This annuity will pay the donor a fixed payment for life (or the longer of two lives). The rate is based on the donor's age when creating the annuity. The remainder value of the annuity will be available to the University when the payments end.

• Annuity rates are based on the age of the donor. For example, a 75-year-old donor will receive 6.5% annually.


• Donors receive a charitable deduction for a portion of the initial gift.


• Beginning January 1, 2012, the annuity rates will decrease, so act now to take advantage of higher rates through December 31, 2011. An example of these changes for a Single-Life Charitable Gift Annuity are below:

• Stock contributions or cash can be used to fund a charitable gift annuity.

• The donor must be 70½ or older in 2011.


• The IRA assets can be donated for unrestricted use or be restricted in purpose.


• The IRA assets cannot be used for a life-income gift, such as a charitable gift annuity or charitable remainder trust.


• The donor does not receive a charitable deduction or pay income tax on the gift from the IRA.


• IRA transfers should be initiated immediately to guarantee meeting the December 31, 2011 deadline.


• The donor's financial firm must make the transfer to charity, and the donor must send a letter to the firm requesting the transfer from the IRA.


• For a sample letter to send to the financial firm holding the IRA, please contact Tom Pynchon, Acting Vice President for University Advancement, at (315) 229-5583 or tpynchon@stlawu.edu.