Don't you wish there was a way you could make a substantial gift to Kenyon, and still have access to some of that money to pay the bills? There is: a life income gift.
Kenyon's life income plans offer the following benefits:
There are three ways you can make a life income gift to Kenyon. Read on to see which one best suits your needs.
For gift amounts of $10,000 to $100,000, the best vehicle is a charitable gift annuity. A gift annuity is a simple, one-page contract under which Kenyon, in return for a transfer of cash or other property, agrees to pay a fixed sum of money for the lives of one or two people. Payments to the annuitants are a general obligation of Kenyon College. More on charitable gift annuities...
If your gift is larger than $100,000, you may want to consider a charitable remainder unitrust or CRUT. The CRUT provides for payment to the beneficiary of an amount that will vary from year to year. Although the payout percentage remains fixed, the amount in the trust changes, so the payout amount also changes - rising if the investment return on the CRUT exceeds the payout percentage, and falling if it does not. You choose the payout rate, which must be at least 5% per annum. A lower rate gives a larger charitable deduction while a higher rate yields higher annual income but allows a lower charitable deduction (a higher rate is also less likely to allow the CRUT to grow). A 6% unitrust valued at $100,000 its first year will pay out $6,000. If in its second year the trust is valued at $110,000, the payout will grow to $6,600. The variable nature of the unitrust provides a possible hedge against inflation. Another feature of the unitrust attractive to donors is that it allows additional contributions to be made at any time. Kenyon can serve as trustee of your unitrust, and works with a professional asset manager to invest the funds.
The annuity trust or CRAT is similar to the CRUT but provides for a fixed payment based on the initial value of the assets. This amount must equal at least 5% of the initial fair-market value of the assets contributed to the trust and additional contributions are not allowed.
For more information about life income gifts to Kenyon, contact:
Kyle W. Henderson ’80
Associate Vice President for College Relations
Gambier, OH 43022