Planning for Your Future and the Future of the Baylor Libraries

Planning for retirement can be complicated. Some people want to contribute to organizations and programs that have influenced their lives, but they worry about income sources during retirement. For this person, a charitable gift annuity may be just the right fit. With any charitable gift annuity, a donor can contribute to Baylor Libraries, receive immediate and future tax benefits and increase overall retirement income.

Simply stated, a charitable gift annuity benefits donor as well as Baylor. A charitable gift annuity is an agreement between Baylor and a donor in which the donor transfers cash or securities, and in exchange, Baylor agrees to pay a predetermined annual amount for life (the payments are backed by the assets of the university).

A deferred charitable gift annuity is the same, except that the donor delays the start of payments by selecting a date that is at least one year from the original gift. This choice can be particularly beneficial for people preparing for retirement because they can set it up while they are still working, and they can set payments to begin during anticipated retirement. In turn, donors have the benefits of a lower tax bracket when they receive the income and a higher tax bracket when they receive the charitable deduction on the original gift.

The benefits of deferred versus non-deferred are that the donor can make a contribution to Baylor now, but by deferring payments, one receives a greater tax benefit on the original gift and often times larger payments as well (depending on the selected start date). The recommended amount for an annuity is $10,000 or more.

For more information, please contact Larry Smith or Susan Wommack in the Office of Gift Planning at 1-800-BAYLOR-U, option 4, or 254-710-2561.

-Traci Chandler, University Development