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"We Make a Living by What We Get; We Make a Life by What We Give"*

George and Anne Petty smilingCGA Proves to Be Right Gift for George and Anne Petty

Some time ago, George and Anne Petty decided to include the University of North Alabama in their wills. Recently, they began to think that in today's low interest rate environment, it was possible to make their gift do double duty.

With a charitable gift annuity (CGA), George and Anne could enjoy the satisfaction of supporting the institution that adds so much to the quality of life in Florence while currently earning a higher rate of return on their gift assets at the same time. Not only will the CGA pay them a higher quarterly return than the bank, almost 80 percent of their annuity payments will be tax free, and they will receive a generous tax deduction to use this tax year. The Pettys structured their CGA as a two-life annuity, in which payments are made to George and Anne for their joint lifetimes and then upon the death of the first annuitant, the payments continue for the lifetime of the survivor.

After graduating Phi Beta Kappa from William and Mary, George spent two years as an officer in the U.S. Army Infantry. He earned his MBA from the Darden School of Business at the University of Virginia and is also a Certified Public Accountant. Anne also graduated from William and Mary and taught high school French. They first met at the telephone company in Richmond where George had an internship and Anne a summer job. When George joined Touche Ross & Co. in Dayton, Ohio, they continued their relationship long-distance for three years. Then, according to George, "after a bad fender-bender between Richmond and Dayton," they decided to get married.

During his career, George and Anne have enjoyed living in many places, from Virginia to Ohio to Albuquerque to Houston to Idaho. In Idaho, George remembers "driving 100 miles a day, in snow!" His last career move was to Florence to assume the duties of Vice President-Finance for Ala-Tenn Resources. Even though they had traveled extensively during George's career, George and Anne chose to live in Florence when he retired. "It's easy to live here," Anne says. They both agree that Florence is a safe, clean, friendly city and has a low cost of living index, but UNA was a major factor in their decision to remain in Florence.

The Pettys take full advantage of UNA. George has audited eight university courses and they both attend UNA's Institute for Learning and Retirement seminars. And although neither George nor Anne is musically trained, they both enjoy music, especially the Shoals Symphony at UNA. In fact, George was a member of the Board of Directors of the Symphony for 15 years and was involved in moving the Symphony to UNA.

George and Anne know their gift would be appreciated if given to their alma maters. But, as George says, it is far more important for UNA. And since they actively participate in the many academic and cultural programs at UNA and understand UNA's contribution to the quality of life in Florence, it was only natural for them to offer their support. They did not have to think long about which program they wanted their gift to support. With their CGA, the Anne and George Petty Endowed Fund was established for the benefit of the Shoals Symphony at UNA.

Using a CGA to make a gift to UNA is a good example of a win-win scenario. George and Anne will enjoy a guaranteed income for the rest of their lives and the Shoals Symphony will be the beneficiary of their endowment when it is funded. The way George put it, "4½ to 5 percent versus 2 percent for long-term CDs; it's a no-brainer."

Learn How You Can Help
If you would like to establish a CGA or would like more information on other ways you can use planned giving to support the University of North Alabama, contact Dr. Judy Jackson at 256-765-4896 or jtjackson@una.edu today, at no obligation.

* Quote by Winston Churchill

Sample Charitable Gift Annuity Rates
One Life Two Lives
Your Age Rate of Return Your Ages Rate of Return
50 4.8% 50/55 4.2%
55 5.0% 55/60 4.6%
60 5.2% 60/65 5.0%
65 5.5% 65/70 5.2%
70 5.8% 70/75 5.5%
75 6.4% 75/80 5.9%
80 7.2% 80/85 6.6%
85 8.1% 85/90 7.5%
90+ 9.5% 90/95+ 9.0%
The rate of return is slightly lower for two lives because the period of payment generally is longer.

A charitable bequest is one or two sentences in your will or living trust that leave to the University of North Alabama Foundation a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

Bequest Language

"I, [name], of [city, state, ZIP], give, devise and bequeath to University of North Alabama Foundation [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the UNA Foundation or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the UNA Foundation as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the UNA Foundation as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the UNA Foundation where you agree to make a gift to the UNA Foundation and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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