Torch, Spring/Summer 2009

Spring–Summer 2009 | TORCH 9 S ince 1995, I’ve helped the Cedarville family make smart investments in our students through the gift planning office. You may be surprised that gift plan options will help you make a difference for students while also providing significant income and tax benefits for the donor. A gift annuity is also a perfect example of a charitable gift that makes sense in this economy, particularly for seniors. What is a gift annuity? A gift annuity is a gift to Cedarville University in exchange for our contractual promise to make lifetime payments to you and your spouse. An irrevocable cash or stock gift of $5,000 or more provides income to you at a rate suggested by the American Council of Gift Annuities. Your gift also qualifies for a charitable income tax deduction, and your payouts are partially tax-free! Upon your death, the University uses the gift residual according to your designation. How does a gift annuity compare with a CD? Gift annuities have the same low-risk security of a CD but have a payout rate 4–6 percent higher. CDs provide the same rate no matter your age; with gift annuities, the older you are, the higher your rate. Gift annuities make sense for seniors over the age of 70 who want to avoid the volatility of today’s investment market and need the tax savings or fixed-income stream more than the liquid asset. How does a gift annuity help students? Some donors establish a scholarship fund that begins once the investment transfers back to Cedarville. Others allow their gift to strengthen the University’s endowment, which keeps costs affordable for every student. Is it easy to do? The contract agreement is just one page, and our experienced staff can help you determine whether a gift annuity is right for you. Gift planning options are highly personalized according to your circumstances, assets, and charitable goals. We can help you tailor a gift plan that will not only meet your needs but also prepare students to pursue their ministries and professions. As a parent and father-in-law to four graduates, I can’t think of a more worthwhile investment. Ready to get started? Find more gift planning resources online at . For more information, call 1-800-766-1115 or e-mail . Dave Bartlett, associate vice president for gift planning and endowment, can help you make the most of a charitable giving opportunity. Making Sense of Gift Annuities by Dave Bartlett