These gifts provide you or a loved one with income for life, and thereafter, benefit
the College. Two popular types of life income gifts are a
charitable gift annuity which provides guaranteed, fixed payments
for life and a charitable remainder trust
which typically provides fluctuating income payments based on the annual value of
the trust. When the annuity or trust ends, the remaining assets support the College.
A gift annuity is the simplest type of life income gift. A charitable
gift annuity provides guaranteed income in exchange for an irrevocable gift of cash
or appreciated securities. A deferred gift annuity works the same way except that
the payments start a year or more after the date of the gift.
With a gift of $10,000 or more, you can establish a charitable gift annuity
with Randolph-Macon College. A gift annuity is a simple contract whereby the College
promises to pay one or two beneficiaries (for example, you and your spouse) a fixed
amount per year for life. The rate of income, as recommended by the American Council
on Gift Annuities, depends primarily on the age of the beneficiary or beneficiaries.
The older the beneficiaries, the higher the rate.
Also, the rate will be increased if the donor delays receiving payments for a year
or more after the date of the gift. Many donors use this type of deferred gift annuity
to supplement retirement income.
At the death of the beneficiary or beneficiaries, the principal remaining in the
annuity account will be used by the College for the purpose you designate.
Some benefits of establishing a charitable gift annuity are:
In addition to these benefits, a gift annuity can provide generous support for the
future of Randolph-Macon College.
A charitable remainder trust is a life income gift in which you make an irrevocable
contribution of cash, securities, real estate, or other assets to a trust that ultimately
benefits the College. You receive income from the trust for a period of time such
as your life or the life of another, and the College receives the remaining trust
principal at the end of the term, to be used for the purpose you designate.
There are two types of charitable remainder trusts-the charitable remainder
unitrust and the charitable remainder annuity trust.
With the unitrust, the beneficiary or beneficiaries receive a fixed
percentage of the annual value of the trust principal. Payments may fluctuate from
year to year, since they are based on the changing annual value of the trust. The
donor can make additional contributions to a charitable remainder unitrust.
With an annuity trust, the beneficiary or beneficiaries receive
a fixed dollar amount annually. Payments will not fluctuate from year to year. Additional
trust contributions are not allowed with a charitable remainder annuity trust.
Some benefits of establishing a charitable remainder trust are:
In addition to these benefits, a charitable remainder trust can provide generous
support for the future of Randolph-Macon College.
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