Community involvement has always been important to Barbara. When they were younger‚ she and her husband taught their children the value of community service and charitable giving. The family was regularly involved in community projects‚ and they often spent holidays volunteering to serve those who were not as fortunate.
When her husband passed on a year ago‚ Barbara immersed herself in her volunteer work and started to think about ways that she might give even more.
She also thought about how her own family has grown. Barbara’s children have families of their own now and‚ by example‚ they are teaching their children the importance of community service.
Recently Barbara learned how a charitable gift annuity from the Minnesota Medical Foundation‚ which will benefit research‚ education‚ and care in women’s health at the University of Minnesota‚ can allow her to be even more generous.
As a part of their estate plan‚ Barbara and her husband had invested in several certificates of deposit to provide a safe and fixed income and quick liquidity‚ should they need it. But Barbara’s needs have changed and‚ after consulting with her financial adviser‚ she decided to adjust her financial plan and investments.
The charitable gift annuity provides several advantages:
- Barbara will receive a fixed annual payment that’s significantly larger than the amount she got from the certificates of deposit.
- A portion of the annual payment will be taxfree for several years‚ which will further increase the real (after-tax) value of the payment she receives.
- Barbara will receive a large income-tax deduction‚ which will reduce her taxes this year and perhaps next.
- And‚ most important to Barbara‚ she will be able to make a generous contribution to the Department of Obstetrics‚ Gynecology‚ and Women’s Health at the University of Minnesota.
Barbara sees the financial advantages of the gift annuity as icing on the cake—the gift annuity will allow her to make a bigger gift and to combine some of her financial plans with her philanthropic goals.
Barbara is pleased that the gift annuity offers another opportunity to teach her children and grandchildren about an important value that helped shape her life.