Alumni Bob ’50 and Joyce (Schroeder) Winchell ’50, and Al ’50 and Carol (Krause) Block ’51 have taken the initiative to make planned gifts to Carroll that benefit the college, provide lifetime income for themselves and support future students.

Longtime supporters of Carroll College, the Winchells made their first planned gift in the form of a charitable gift annuity nearly 15 years ago; the Blocks established charitable gift annuities recently. Both couples chose one of the most common, popular and simple ways to make a planned gift. In exchange for an irrevocable gift to Carroll, the college agrees to pay the annuitants a fixed dollar amount each year for life.

Bob and Joyce Winchell, of Waukesha, met at Carroll, where he was an English major, she a music major. They married soon after graduation and had three daughters. Bob spent his entire career in the insurance industry and was active in the local Kiwanis club. Joyce, aside from tending to the household, was an active member at the local Presbyterian Church.

“We love this college,” said Bob who, with Joyce, established a charitable gift annuity in 1990. “Not many people are able to make a large, one-time donation,” explains Bob. The Winchells were thrilled to learn that establishing a charitable gift annuity would continue to benefit them over the long run. “Using this option, everybody wins.”

Al and Carol Block believe strongly that the quality teaching at Carroll and personal contact with professors opened many doors for them. In appreciation, they set up their first charitable gift annuity in 2003 and their second a year later.

“ We were unhappy with the small return we were receiving on our CD investments,” said Al. The couple began working with Marc Barbeau at Carroll, who explained the benefits of establishing a charitable gift annuity. “Not only was establishing a charitable gift annuity simple, but it was a win-win for us,” Al said. They benefit from the steady stream of annuity payments and were able to establish a scholarship in their name. “Establishing an endowed scholarship alongside our gift has allowed us to choose our own legacy,” said Al. “We feel that is a unique opportunity.”

Carol, a non-traditional student, attended Carroll between 1951 and 1980. In 1971, she returned to complete the degree she began nearly 20 years earlier. Her experience at Carroll was different than most from her generation. Her time at the college is very important to Carol and is one of the many reasons she feels connected to the institution.

Fifteen years ago, Bob and Joyce established their gift annuity. In the last two years, the Blocks established two gift annuities. Both couples are extremely happy with the results. Not only are annuity payments guaranteed by the college, but they are deposited directly in their checking accounts.

A charitable gift annuity is one of the most common, popular and simple ways to make a planned gift that provides beneficiary(ies) lifetime income in return. It is a simple contract between you and Carroll College. In exchange for an irrevocable gift of cash, marketable securities, or, in some circumstances, real estate, Carroll agrees to pay one or two annuitants a fixed dollar amount each year for life. The fixed dollar amount is based on the age of the beneficiary(ies) at the time the gift is made (the older the beneficiary(ies), the greater the payout.) The annuity rate is usually based on recommended rates established periodically by the American Council on Gift Annuities.

A gift annuity allows you to receive a tax deduction based on your payout rate, age and the federal discount rate. If you donate an appreciated asset, a portion of each payout will be capital gains, which is therefore spread out over your lifetime. Equally, part of each payment would be a tax-free return of principal, increasing the after-tax value of each payment. Since you have effectively removed the assets from your estate, you avoid estate taxes.

When an annuity is funded with cash, a portion of each annuity payment is treated as a return on the original investment and is received free of income tax over the life of the annuitant. When an annuity is funded with long-term appreciated securities, any reportable capital gain is spread out over the life expectancy of the donor. If the donor is not the beneficiary(ies), the donor must report and pay tax on the full amount of the capital gain in the year of the gift.

Payouts may be made annually, semiannually, quarterly or monthly. The checks are sent directly to the donor or to a specified bank account. The assets of Carroll College back each annuity.