A Charitable Gift Annuity (PDF) contract is ordinarily between a person or couple and a charity. In exchange for an irrevocable gift of cash or securities, the charity agrees to pay the donor (or one to two other recipients) a fixed sum each year for life. The older the designated annuitants at the time of the gift, the more the charity can agree to pay. In most cases, part of each payment is tax-free, increasing its after-tax value. As a result, the donor enjoys an income tax deduction and may defer capital gains tax as well.
TIAA-CREF Trust Company provides the following gift annuity services:
Gift administration includes determining the suitability of marketable securities or other assets received for contracts issued; ensuring that all necessary information has been supplied to initiate payments; determining the value of gifts donated to your plan; helping to liquidate assets as necessary; and calculating, if desired, the charitable income tax deduction applicable to any current or deferred gift annuity contract.
Portfolio management includes periodically reviewing investment policies and donor and institutional needs and objectives; rebalancing your portfolio as necessary to maintain your desired asset allocation; and ensuring that investments of gift annuity proceeds comply with appropriate regulatory guidelines.
Accounting and recordkeeping includes helping to verify that each gift complies with state reserve requirements; tracking and reporting on gift annuity remainder values; providing financial and planned-giving staff periodic account statements and investment performance reports on gift annuity assets; and generating all required liability reports for FASB 116 and 117 compliance.
Annuitant payment includes remitting periodic distributions to annuitants by check or direct deposit (if desired, we can send out payments on checks bearing your institution's logo); providing monthly payment summaries to those you designate: and including letters or other annuitant/donor communications with payments.
Tax reporting includes preparing and distributing all required IRS form 1099-Rs.
Investment products are not insured by the FDIC; are not deposits or other obligations of TIAA-CREF Trust Company, FSB; are not guaranteed by the TIAA-CREF Trust Company, FSB; and are subject to investment risks, including possible loss of principal invested.
The tax information herein is not intended to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties. It was written to support the promotion of TIAA-CREF Trust Company, FSB. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
Access your Trust Company account to check balances, review transactions and more.
Access to your Planned Giving and Endowment account to access reports, review account information, and more.
© 2009 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
