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Giving

Good Counsel: Planning for giving–and receiving

Wendy Chou

By Wendy Chou, Deputy Director of Planned Giving, and Director of Planned Giving, Medical Center Development

Planning a bequest

Combining charitable giving with long-term financial planning is a great way to secure an income stream for yourself or a loved one while supporting your favorite charities and causes. As described in the feature story of the Summer ’25 issue of Remember Stanford, Bill Pegram ’73, MBA ’77, was able to strike this balance by setting up two planned gifts—a charitable gift annuity and a charitable remainder unitrust. These gifts will generate income for Bill for his life and eventually support areas at Stanford that are of significance to him.

What is a charitable gift annuity (CGA)?

A CGA is a type of life income gift. You contribute cash or appreciated assets to Stanford. In exchange, you and/or another named beneficiary, known as the annuitant(s), receive fixed annual payments for life. The amount of the payments will depend on each annuitant’s age. At the end of the annuitant’s lifetime, Stanford uses the remainder of the gift for the purpose you have designated. Another benefit is that you may also be entitled to certain tax benefits in the year that the CGA is established. CGAs can be funded with different kinds of assets, including cash and securities. Based on a new law from 2023, under certain circumstances, CGAs may also be funded with qualified charitable distributions from IRAs.

What is a charitable remainder trust (CRT)?

A CRT is another life income gift where you make a gift to a trust, and you or another beneficiary receive income for life or a term of years. A CRT can be set up to provide a fixed income or a variable income. You may be entitled to an immediate charitable income tax deduction for a portion of the gift,  and you may designate a purpose for how the remainder interest of the CRT will be used at Stanford.  

No matter how you envision building your legacy, giving through a CGA or CRT can be a smart way to give back to yourself while benefiting others or charities after you are gone. To learn more about these and other giving options, please call the Office of Planned Giving at (650) 725-4358 or email us at planned.giving@stanford.edu. We are happy to work with you and your advisors anytime.

Disclaimer

This is not legal advice. As always, we recommend you discuss any life income gifts with your professional advisors. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life & Health Insurance Guarantee Association. Stanford is unable to offer gift annuities to residents in certain states. If you live outside of California, please contact the Office of Planned Giving for information.