Planned Giving at Furman University

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Lifetime Gift from a Retirement Account
(Gift Example)

The first example illustrates an outright gift from an IRA by a donor over age 70½.

The second example illustrates the costs and benefits of a withdrawal from an IRA by a donor younger than 70½, used to fund a life-income gift.

Example 1

You are 75 years old and your adjusted gross income will total $200,000 this year. Earlier in the year you contributed $100,000 to Furman University, so you have reached the limit (50% of adjusted gross income) on charitable gifts you can deduct this year.

You want to provide additional support for a Furman University program, so you direct a $100,000 payment from your IRA to us.

Here is a summary of the costs/benefits of making this gift:
Donor	Individual, age 75
Withdrawal from IRA	$100,000
Contribution	$100,000
Income tax on withdrawal	$0
Charitable deduction for withdrawal	$0
Previous gift this year	$100,000
Combined gift to us	$200,000
Income tax on combined gift	$0

Example 2

You are 65 years old. You withdraw $100,000 from an IRA and use it to create a Charitable Gift Annuity, making lifetime payments to you, then paying the remaining balance to Furman University.

Here is a summary of the costs/benefits of making this gift:
Donor	Individual, age 65
Withdrawal from IRA	$100,000
Contribution	$100,000
Current from IRA	$3,000 (3%)
Annuity payment	$6,000 (6%)
Tax-free portion	($2,949)
Tax on IRA withdrawal	$35,000
Charitable deduction	$41,311
Deduction tax savings @ 35%	$14,459
Net tax cost of gift	$20,541 ($35,000 - $14,459)
After-tax income from annuity	$4,932 / year
Additional annual income	$1,932 ($4,932 - $3,000)

For more information

Email us, complete the personal illustration form, or call us at 864-294-3461 so that we can assist you through every step of the process.