Gift Annuity Description

A gift annuity is a simple contract between the donor(s) and the University of Alaska Foundation. In exchange for the donor’s(s’) contribution, the Foundation promises to make fixed, guaranteed payments for life to one or two annuitants (usually, but not necessarily, the donor(s)). The amount paid is based on the age of the annuitant(s) at the time of the gift, in accordance with the Foundation’s rate schedule.


Minimum Amount and Age to Establish a CGA

The minimum amount that is required to be transferred to the Foundation in exchange for a Charitable Gift Annuity contract is $25,000. Under the age-based payout percentages approved by the American Council on Gift Annuities, approximately one half of the amount transferred to the Foundation for a CGA is expected to remain once all the annuity payments to the annuitant have been made. Thus, the $25,000 minimum transfer amount will result in a minimum gift to the Foundation of around $12,000.

The minimum age for any annuitant receiving payments from a CGA at the Foundation is age 60.

Not a Commercial Investment

The act of establishing a gift annuity with the Foundation is not, and should not be viewed as, an investment. Rather, it is a way to receive annuity payments while making a charitable donation. In this respect, the Foundation gift annuity is different from a commercial annuity. However, the fact that you are making a charitable gift may provide you with tax benefits, including a current federal income tax charitable deduction (if you itemize your deductions), annuity payments which are partially tax-free, and future estate tax savings.


Gift Annuity Rates

The gift annuity rates paid by the Foundation are those suggested by the American Council on Gift Annuities, which is a national organization of charities that has been in existence since 1927. These rates have been calculated so as to provide attractive payments to the donor and/or other annuitant(s) and also to result in a significant portion of the contribution remaining for the charity. Because a charitable gift is involved, the rates are lower than those available through commercial annuities offered by insurance companies and other financial institutions.


Assets Backing Annuity

The annuity payments are a general obligation of the Foundation, and they are backed by all of our assets subject to existing security interests. At June 30, 2006 our total invested funds exceeded $144 Million, and they are invested in a balanced portfolio of short and long term investments Assets received by the Foundation for gift annuities are managed by the Foundation, in a conservative and disciplined manner. If the Foundation should ever fail financially, individuals entitled to receive annuities will qualify as general creditors of the Foundation.

To find the current rates for a single life Charitable Gift Annuity, download:

American Council of Gift Annuities, 7/1/07 - 6/30/08

If you are interested in making a gift to the university through a Charitable Gift Annuity or wish to learn more about how they work, please contact the UA Foundation or any of the University of Alaska Development Offices.