A gift annuity is a contractual agreement between a donor and SMU. In exchange for a gift to the University, SMU agrees to pay a fixed annuity to the donor or other annuitant each year as long as he or she lives. The annuity is a percentage of the gift and is based upon the donor's age. A portion of each annuity payment may be tax-free return of the principal. A gift annuity can be funded with cash or securities.

Deferred-Payment Gift Annuity Donors receive a more attractive gift annuity rate by making the gift today and deferring the annuity payments to some date in the future. The longer the deferral period, the greater the annuity rate and the charitable income tax deduction.