Gifts that Come Full-Circle
Captain James Arrison III ’64, USN (Ret.) and his wife, Susan
Captain James Arrison III ’64, USN (Ret.), followed a 27-year career as a Surface Warfare Officer with a another two decades in the investment business, so planned giving and charitable gift annuities (CGAs) aren't new to him—he's given presentations to clients on the very same topics. He and his wife, Susan, were eager to establish a CGA through the Naval Academy Foundation to benefit the Academy and the Brigade of Midshipmen. In addition to supporting an organization that has had a tremendous influence on Arrison's personal and professional life, the CGA also offered the couple an opportunity to rebalance their investment portfolio without incurring the capital-gain tax associated with selling appreciated stock.
What was new to him was the option of donating the CGA's annual income back to the Foundation to create another charitable contribution. Not only that, but the Arrisons could specify exactly where they wanted that second contribution to go. They chose to apply it to cover Jim's annual dues as a Trustee of the Athletic & Scholarship Programs division of the Foundation. The size of the gift makes them eligible for recognition in the President's Circle, the Naval Academy Foundation's leadership giving society. The Foundation calls this option a President's Circle Charitable Gift Annuity (PC CGA).
While most donors use the annuity payments from their charitable gift annuity for their own benefit or that of loved ones, the Arrisons are able to use those funds to boost their charitable giving. “At our ages and with our children grown, we were able to transfer some of our appreciated stock to the Academy through a charitable gift annuity,” said Arrison.
And they are happy to do so in service to the Naval Academy.
“The Academy represents everything good that has happened in our lives,” said Arrison. “We're honored to give back, and this vehicle is the right option for us. We're rebalancing our portfolio by divesting ourselves of appreciated shares, we're supporting the Academy in the way we want and we're enjoying the benefits of President's Circle recognition.”
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. 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 and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.