Faculty Publications


Charitable Income Gift Options to Produce a Debt-Free (or Nearly) College Graduate

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The surprising flexibility in the design of charitable gift annuities permits a donor to achieve his financial and philanthropic goals. In my June 2015 column, I reviewed the goals and aspirations of the three “Harrys’.” Harry, Sr. and Harry, Jr. commuted separately funded gift annuities to provide funds for Harry III’s medical school education. The result of this charitably savvy plan was the underwriting of most of Harry III’s medical school education from the commuted payments and gifted tax savings. General Counsel Memorandum 39826 (Aug. 27, 1990) permitted installment payments for either a number of years certain or a lump sum amount. A donor could assign the rights to the annuity payment, so long as the assignment was completed before the first annuity payment was due.