University pushes gifts through ads
Gift annuities are up since the campaign’s start
By Brent Yarina
Staff Reporter

The university’s decision to advertise TCU’s charitable gift annuity contract in the Fort Worth Star -Telegram is yielding a significant increase in donors this year, Assistant Director of Gift Planning Cathy Sheffield said Tuesday.

Sheffield said the number of charitable gift annuities has increased 40 percent since last year, which she described as a simple, contractual agreement between one or two donors and TCU involving the transfer of assets in exchange for the university’s promise to pay the individual an annuity. She said compared to the six charitable gift annuities received last year, the university has received 10 since June 1, 2002.

Among the 10 annuity plans the university collected this year, the average gift was $50,000, Sheffield said. The average gift this year is about equal to last year’s total amount, she said.

“We’re doing more toward marketing the program than at any other time,” Sheffield said.

In addition to putting advertisements in local newspapers, the university also sends an issue of “TCU Intentions,” a gift planning newsletter, to 15,000 alumni two to three times a year, she said.

Mike Mattson, assistant vice chancellor of leadership and gifts, said the university began advertising to individuals outside the TCU community this year because Fort Worth has many people who support TCU.

“Our charitable gift annuity contract appeals to a narrow group of people,” Mattson said. “Many other organizations have advertised and we realized it would be beneficial for us to do the same because many people want to support TCU.”

Sheffield said the university’s alumni is attracted to charitable gift annuities because a portion of the payment is tax free. It is a great way to supplement income and donors may qualify for charitable deductions in certain years, she said.

“Our goal is to appeal to the philanthropic interests of our alumni and encourage them to consider TCU in (their) estate plans,” she said.

However, she said, charitable gift annuities are not for people of all ages and that the university targets the retired demographic because the older a donor is, the higher rate they receive.

“This gift is best for someone who wants a steady income for life,” Sheffield said. “It’s guaranteed and backed by TCU.”

Mattson said age is an important criteria when considering charitable gift annuitants because TCU wants 50 percent of the gift to remain for the designated charity upon the person’s death.

Sheffield said most of the charitable annuity contracts the university receives come from individuals who are either interested in giving back to TCU or have the university in their estate plans.

“You have to have a charitable intent,” she said. “It is a gift made to TCU which is irrevocable.”

She said once individuals give their gift to the university, they receive charitable annuity payments, which are guaranteed until their death. Upon the individual’s death, Sheffield said, the gift is used as the donor requested. Most donors designate their gifts to be used for a scholarship, she said.

Jim Willmon, a 1949 graduate and a charitable gift annuity participant, said his fond feelings for his alma mater led him to include TCU in his will and to establish a scholarship fund for the university’s communication students.

“I sort of had a selfish reason for giving a gift annuity,” Willmon said. “With the economic climate being what it is, a charitable gift annuity is an excellent vehicle because there’s a basic return on it. I think for people in a situation like mine, with one or no heirs, it’s a good alternative.

“I intend to continue to give to the program on an annual basis,” he said. “Without TCU, I probably wouldn’t have had the opportunities I’ve had. It’s payback time.”

Brent Yarina