In 2002, Jo Markovich (BA ’57, MA ’64) inquired about the benefits of a charitable gift annuity with SF State. With her degrees in special education from SF State, Jo became a teacher— an occupation she heavily cherished. She was eager to give back to the University, and through a charitable gift annuity, she accomplished that objective while ensuring a fixed annuity income each year for the duration of her life. Fortunately for her and the University, the charitable gift annuity provides for her needs and simultaneously succeeds in helping SF State by making the remaining amount available for charitable use upon her death.
When asked why she liked this gift, Ms. Markovich expressed herself in a way that summed up her feelings— “It's good for me, and it's good for you.” This gift is perfect for people who want to give but just do not feel as if they can afford to part with the income and security that their assets provide for them. Since completing her first annuity, Ms. Markovich has completed an additional annuity and has plans to complete another one at the end of this year.
The charitable gift annuity works simply. For a cash gift of $10,000 or more, SF State, through the California State University Foundation, and the donor sign a simple contract whereby the Foundation agrees to pay the annuity amount (a yearly payment that can be paid annually, bi-annually, or even quarterly) for the rest of the donor's life.
The amount of the fixed annuity payout is based on a percentage rate that is solely determined by the donor's age. So with each age, you turn, the fixed payout rate is higher. The American Council on Gift Annuities recommends a percentage rate that the University follows strictly. Annuities can also be purchased by couples, with corresponding rates.
SF State guarantees donors such as Ms. Markovich a yearly payment for the rest of their lives. In addition to this annual return, the charitable gift annuity enables a donor to take an income tax deduction in the year of the gift and to avoid any capital gains when giving appreciated assets such as stock shares. A large portion of Ms. Markovich's yearly payment is tax-free, and because she has removed the annuity assets from her estate, they will not be subject to estate taxes.
At the end of the annuity contract, SF State will use the remainder for the purpose of the donor's choice. Ms. Markovich left her first gift unrestricted, so when the gift becomes available, SF State can apply the funds to its most critical needs.
We thank Ms. Markovich for her generous and purposeful gift to SF State! We are so delighted and grateful that her charitable gift annuity both guarantees her an annual income and leaves SF State with a much-valued donation.
