Texas Tech University

Weighing Pandemic Risks When Donating to Colleges


September 4, 2020

The New York Times - A charitable gift annuity is a way to ensure regular income while also leaving a donation behind, but the coronavirus is squeezing some previously solvent schools.

The other rate that matters is the investment return; the recession has driven those rates down. That could be bad for donors expecting a tax deduction on what is eventually left to the nonprofit because a lower assumed rate of return means more money that needs to be paid back as an annuity and less left over at the end, said Russell James, a professor of personal financial planning at Texas Tech University.

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