Gift Annuity Disclosure Statement
Description of a Gift Annuity
A gift annuity is a simple contract between a donor ("Donor" or "Donors") and Temple University — Of The Commonwealth System of Higher Education ("Temple"). In exchange for the Donor's(s') contribution, Temple promises to make fixed payments for life to one or two annuitants (usually, but not necessarily, the donor/s). The amount paid is based on the age(s) of the annuitant(s), in accordance with Temple's rate schedule.
Not a Commercial Investment
The act of establishing a gift annuity with Temple is not, and should not be viewed as, an investment. Rather, it is a way to receive annuity payments by making a charitable donation. A gift annuity issued by Temple is different from a commercial annuity. While both types of annuities make payments that are usually partially tax-free, the charitable donation aspect of establishing a gift annuity may result in additional tax benefits that are not available when purchasing a commercial annuity. These tax benefits include a current federal income tax charitable deduction (if you itemize your deductions), a reduction of capital gains taxes if you fund your gift annuity with appreciated securities, and possible future estate tax savings.
Points to Remember
- A contribution for a gift annuity is irrevocable.
- The right to annuity payments may not be assigned to any person or organization, other than Temple.
- The gift date is the date when you actually transfer assets. In the case of cash, it is the date you mail or deliver a check. In the case of an electronic transfer of securities, it is the date they are received into the account of Temple. If you have certificates, it is the date they are properly endorsed and mailed or delivered.
- The gift annuity is governed by applicable state laws.
Gift Annuity Rates
Generally, the gift annuity rates paid by Temple are those suggested by the American Council on Gift Annuities, which is a national organization of charities that has been in existence since 1927. These rates have been calculated so as to provide attractive payments to the donor(s) and/or other annuitant(s) and also to result in a significant portion of the contribution remaining for the charity. Because a charitable gift is involved, the rates are lower than those available through commercial annuities offered by insurance companies and other financial institutions.
Assets Backing Annuity
The annuity payments are a general obligation of Temple, and they are backed by all of our assets (subject to security interests). As of June 30, 2018 the market value of our total invested funds exceeded more than $642,000,000, and they are invested in stocks, bonds and other obligations. Temple maintains a gift annuity reserve fund valued at more than $6,000,000. Assets received by Temple for gift annuities are managed by State Street Global Advisors, in a conservative and disciplined manner.
Temple was established in Pennsylvania in 1884 and is governed by Board of Trustees, comprised of 35 members, who are both elected and appointed by the Commonwealth of Pennsylvania. Common investment funds managed by Temple are exempt from registration requirements of the federal securities laws, pursuant to the exemption for collective investment funds and similar funds maintained by charitable organizations under the Philanthropy Protection Act of 1995 (P.L. 104-62). Information in this statement is provided to you in accordance with the requirements of that Act.
For More Information
This disclosure statement is intended to provide basic information regarding the gift annuities issued by Temple, and is not intended to serve as legal advice. We encourage you to consult with your own legal and/or financial advisor about the applicability of such a gift in your own situation. If you have additional questions concerning Temple's gift annuity program, please call or write Tom Yates, Executive Director of Gift Planning, 215-926-2545 or firstname.lastname@example.org.